SBP Clarifies Two-Hour Cooling Period Limited to Branchless Banking Transactions

The State Bank of Pakistan (SBP) has issued a clarification to address growing concerns on social media regarding a “two-hour cooling period” for digital fund transfers. The central bank emphasized that all interbank digital transactions are processed on a real-time basis, with the delay applying only to branchless banking accounts as a security safeguard.

In its statement, the SBP explained that funds transferred to any account including bank-to-bank transactions are reflected instantly and available to the beneficiary. However, when funds are sent to branchless banking wallets, such as mobile money accounts, users can access them only after a two-hour window for activities like cash withdrawal, bill payments, mobile top-ups, or online purchases.

While funds are received instantly in branchless banking accounts, cash withdrawals and other usage can only be made after a two-hour window.

-SBP

The measure was first introduced in April 2023 under enhanced customer due diligence requirements. Branchless banking accounts, often opened through simplified processes, were flagged by regulators as carrying higher risks of misuse in fraudulent transactions.

According to the SBP, the cooling period offers customers a crucial buffer to report unauthorized or suspicious transfers before the money can be misappropriated. “The two-hour delay serves as an important safeguard and has proven to be a robust measure against fraudulent transactions since its implementation two and a half years ago,” the central bank stated.

The regulator reassured that it remains committed to strengthening Pakistan’s digital financial ecosystem while balancing innovation with consumer protection. The SBP said it would continue refining mechanisms to secure users against cybercrime and financial fraud, which have grown alongside the rapid adoption of digital payments in the country.

What This Means for Consumers

The clarification means that individuals using conventional digital banking platforms will face no restrictions in accessing funds. The safeguard only impacts branchless banking customers, typically those using mobile wallets or app-based accounts. For everyday users, this means real-time fund transfers remain unaffected.

The SBP’s move reflects the growing focus on securing financial transactions in a digital-first economy. With mobile wallets playing a central role in financial inclusion across Pakistan, regulators appear determined to ensure that rapid expansion does not compromise customer safety.

ALSO READ: SBP Unveils Vision 2028: Pakistan to Digitize All Government Payments by 2026