The State Bank of Pakistan (SBP) has clarified the reason behind the two-hour cooling period applied to digital funds received in branchless banking wallets and accounts.
The move, introduced in April 2023, is designed to enhance customer security and reduce the risk of fraud.
According to the SBP, all digital funds transfers are processed in real time, ensuring that money is instantly credited to the recipient’s account.
However, while funds sent to branchless banking wallets and accounts are transferred immediately, customers cannot use them right away. Withdrawals, mobile top-ups, and online purchases from these wallets are only possible after a two-hour delay.
Why the delay exists
The central bank explained that this rule specifically applies to branchless banking wallets and accounts because their user verification process is relatively simple and rules for opening such accounts are more relaxed.
This relaxed verification increases the possibility of fraudulent transactions. The two-hour cooling period is therefore a safeguard, giving customers a window to report any suspicious activity to their bank before the funds are withdrawn or misused.
The SBP noted that these guidelines are already proving effective in preventing fraud. By introducing a buffer period, customers are given greater control and protection over their funds in case of unauthorized transfers.
