SBP raises digital payment cap for Eid animal purchases

KARACHI: State Bank of Pakistan (SBP) has temporarily increased the online payment limit to Rs 5 million to ease the purchase of sacrificial animals before Eidul Azha, reducing the need for carrying large amounts of cash.

SBP to introduce QR code payment system for cattle markets

The SBP announced that from May 31 to June 20, 2024, the transaction and balance limits for specific account categories has been increased to facilitate digital payments in cattle markets for Eid, which falls in mid-June 2024.

The accounts affected include Branchless Banking L-1, Asaan Account/Asaan Digital Account, and Merchant Account. For these accounts, the maximum balance limit is now Rs 5 million, and biometrically verified accounts of cattle farmers and merchants can exceed usual limits after on-site verification.

This measure aims to reduce cash transactions by promoting digital payment methods during the Eid festival, when large cash exchanges are common.

Last month, the central bank announced plans to introduce a QR code payment system in cattle markets, enabling transactions through digital channels. SBP Payment System Policy and Oversight Department Joint Director Ahmed Sumair stated that the central bank is working with 25 banks to implement this system in 50 major cattle markets ahead of Eid.

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Commercial banks will establish kiosks in cattle markets to assist with QR code payments. Buyers can scan QR codes generated by merchants using mobile phones on Raast or other mobile applications provided by banks.

The identified markets include those in cities with SBP field offices, such as Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad.