Digital payment ceiling raised for cattle purchase
PHOTO: EXPRESS
Pakistan’s central bank has temporarily increased the online payment limit to Rs5 million to facilitate the purchase of sacrificial animals ahead of Eidul Azha and get rid of the hassle of carrying heavy cash.
In an announcement, the State Bank of Pakistan (SBP) said it had temporarily enhanced the transaction/balance limit for various categories of accounts from May 31 to June 20, 2024 to facilitate digital payments in cattle markets for the purchase of sacrificial animals on Eid falling in mid-June 2024. The accounts for which limits have been enhanced include Branchless Banking L-1, Asaan Account/Asaan Digital Account and Merchant Account where a maximum balance limit of Rs5 million and exemption for balances exceeding usual limits have been afforded for biometrically verified accounts of cattle farmers/merchants and after conducting on-site due diligence.
The initiative aims to address the issue of significant cash-based transactions by promoting digital channels as a safe and convenient alternative payment mode, 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 establishing a QR code payment mechanism for cattle markets to facilitate people and merchants to do financial transactions through digital channels. SBP Payment System Policy and Oversight Department Joint Director Ahmed Sumair said the other day the central bank was collaborating 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. Buyers can scan QR codes to be generated by merchants via mobile phones on Raast or through other mobile applications provided by commercial banks. The SBP official mentioned that markets in all 15 cities with SBP field offices, including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, and Hyderabad, had been identified.
Published in The Express Tribune, June 2nd, 2024.
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