The government of Pakistan has recently introduced a new digital payment method, Raast. Besides making the payment system simpler, swift, and easier, Raast will also pave the way for financial inclusion and women empowerment.
Essentially, it is a centralized system connecting the financial and non-financial institutions as well as the individuals. The system facilitates the real-time payments’ settlement. Earlier, if a financial platform wanted to foray into Pakistan, it would approach all the banks and utilize the connections just to take them on-board. Now, all a fintech has to do is connect with Raast where all the financial actors are already linked. This way, both time and resources will be saved.
The major digital payment method prevailing in Pakistan before Raast was interbank funds transfers. This method is cumbersome, as it requires details like bank account number, name, and other specifications. With Raast, all a person is going to do is enter the amount of transaction and their phone number, which will be linked to the directory containing all the requisite information.
The major perks of Raast include instant payment, cost-free, the connection between different sectors, security, and reliability. This system will also help the government achieve its revenue targets, as it will help cut the cord from a cash-based economy. Also, it will contain corruption and money laundering. That will contribute to the efforts taken to be pulled out from the gray list of the Financial Action Task Force (FATF).
The convenience and free-of-cost service itself is a big feat. This platform is a leap toward women empowerment, as it will also facilitate bulk payments under the Benazir Income Support Program (BISP) to women. It will make the lives easier for the senior citizens and the widows seeking pensions. They would no longer have to stand in queues outside some office. This system will also deal with the pensions and salaries of public servants.
Removing the sledge from Pakistan’s financial pipeline is the need of the hour. Introducing Raast is a step toward achieving this goal.
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