SBP and CDC Introduce RAAST Payments for Mutual Funds, Transforming the Landscape of Digital Transactions

In a groundbreaking collaboration, the Central Depository Company (CDC) and the State Bank of Pakistan (SBP) have joined forces to provide investors with a seamless means to acquire mutual fund units through the SBP's RAAST Payment Gateway.

CDC has pioneered a system where it assumes the role of an "Aggregator" and issues a unique Raast Payment ID, empowering investors to transfer funds digitally via Raast to the respective Asset Management Company (AMC) for the purchase of mutual fund units, as detailed in an official news release.

This monumental advancement was unveiled at a distinguished event hosted at the CDC House, graced by the presence of Deputy Governor SBP, Saleem Ullah, who presided as the Chief Guest.

During the event, Deputy Governor SBP, Saleem Ullah commended CDC for its unwavering dedication to digitalization and enhancing customer convenience. He stressed that the primary aim of all digitalization initiatives is to elevate customer satisfaction and convenience. Furthermore, he emphasized that the launch of the RAAST payments facility for Mutual Funds is poised to offer a much-needed level of convenience to mutual fund investors and is expected to play a pivotal role in expanding the investor base.

Unveiling the P2M Feature

A momentous occasion recently occurred as the Director-General of the State Bank of Pakistan (SBP), highlighting the significance of RAAST, announced the launch of the RAAST Payment-to-Merchant (P2M) feature. This game-changing addition promises to revolutionize the way digital payments are made in Pakistan, creating opportunities for businesses and customers alike.

With RAAST P2M, merchants and vendors now have a powerful tool at their disposal. They can initiate a 'Request-to-Pay,' simplifying the payment process for their customers. This user-friendly feature is set to redefine the way businesses receive payments.

The Director-General of SBP encouraged Asset Management Companies (AMCs) to integrate the RAAST P2M feature into their mobile applications and portals. This strategic move paves the way for direct payments from customers' registered accounts, ushering in a new era of convenience and innovation. It promises to create customer-centric investment products, ultimately providing greater savings opportunities.

This innovative leap in digital payments is reshaping the landscape of Pakistan Economy, Business in Pakistan, and Technology in Pakistan. It's a testament to the nation's commitment to fostering innovation and improving financial access for all.

A Regulatory Milestone

Mujtaba Ahmad Lodhi, Commissioner of the Securities and Exchange Commission of Pakistan (SECP), praised the collaboration between CDC and SECP in refining the regulatory framework for the mutual fund industry. This partnership marks a significant stride in market development, efficiency, and investor facilitation.

Badiuddin Akber, CEO of Central Depository Company (CDC), underscored the project's implementation as part of CDC's ongoing strategy to harness technology and innovation. This drive enhances the ease of doing business for investors and AMCs, and the unwavering support from SBP and SECP has been instrumental in the development of these tech-based solutions.

Moin Fudda, Chairman of CDC, expressed his gratitude to SBP for their continuous support in advancing market development. The event was attended by esteemed figures such as Ms. Mashmooma Zehra Majeed, CEO of MUFAP, as well as CEOs and senior executives from the mutual fund industry. They all commended CDC's efforts and the pivotal role it plays in propelling market development.