Prime Minister of Pakistan has recently initiated a new initiative of “Raast” to give a boost to the cashless economy in the country.
The Raast will decrease the time span between different bank transactions by making all the banks operate through its Pipe. That will make it easier for the tax collection by the government as well.
Pakistan first instant payment system
Raast will be Pakistan’s first instant payment system that will enable end-to-end digital payments among individuals, businesses, and government entities within seconds. That will bring down the high cost of the transactions between different banks. For example when a user uses another bank’s ATM that gateway of 1-link helped to perform the transaction at the expanse of some extra cost. But with the implementation of Raast this gap will be covered and it will aid the small-value retail payments cheaply and to avoid every bank has its pipe (gateway).
In the current scenario, if you want to send money from one bank to another, they need to communicate and then the transaction is performed. One Banks’ pipe needs to send and receive information from the other pipe, but there is no standard communication channel between the two pipes, that allows them to do so. That is why the 1-Link and other systems like MNET come in.
The main motive behind the formation of these systems was formed by the mutual understanding of banks to allow transactions between their pipes. At times, the 1-Link these systems are slow and they charge a hefty fee for each transaction, when you’re using another bank’s ATM, it costs you a fee by Raast will eliminate the need for my own bank and 1-Link.
With the inception of Raast, an infrastructure providing a big pipe for every bank to use at a fraction of the cost for instant transactions. Now the process of clearance of cheque sent could be done in minutes, There will be an app built on Raast could let you invest in stocks instantly, as all your bank account and credit card information at one place.
The success of Raast system
The success of Raast system lies in the adoption by different banks, so speed up the process government of Pakistan decided to give the salaries and pensions, through Raast. And all the relevant payments of financial support programmes, such as and the Ehsaas Emergency Cash programme and the Benazir Income Support Programme, will be made using Raast.
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