Digital payment cap for cattle purchase increased

KARACHI:

Pakistan’s central bank has temporarily raised the online payment limit to Rs 5 million to facilitate the purchase of offerings ahead of Eidul Azha and get rid of the hassle of carrying heavy cash.

In a statement, the State Bank of Pakistan (SBP) said it has temporarily enhanced transaction/balance limit for various account categories from May 31 to June 20, 2024 to facilitate digital payments in cattle markets for the purchase of sacrificed animals on Eid fall in mid-June 2024. Accounts for which the limits have been enhanced include Branchless Banking L-1, Asaan Account/Asaan Digital Account and Merchant Account where a maximum balance limit of Rs 5 million has been provided and exemption for balances exceeding normal biometric limits verified accounts of cattle breeders/traders and after conducting on-site due diligence.

The initiative aims to address the issue of heavy cash-based transactions by promoting digital channels as a safe and convenient alternative mode of payment, as heavy cash transactions take place during and around the Eid festival every year, according to the bank. Last month, the central bank said it was creating a QR code payment mechanism for cattle purchases to make it easier for people and traders to make financial transactions through digital channels. SBP Payment System Policy and Supervision Department Joint Director Ahmed Sumair said the other day the central bank was working with 25 banks to implement the QR code payment system in 50 major cattle markets ahead of Eid.

Commercial banks would set up kiosks in cattle markets to facilitate people making payments through the QR code. Shoppers can scan QR codes to be generated by merchants via mobile phones on Raast or through other mobile apps provided by commercial banks. The SBP official said markets had been identified in all 15 cities with SBP offices, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad and Hyderabad.

Published in The Express Tribune, June 2^n.d2024.

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