Breaking News: SBP Clarifies 2-Hour Cooling Period on Digital Fund Transfers in Pakistan
The State Bank of Pakistan SBP Clarifies 2-Hour Cooling Period on Digital Fund Transfers in Pakistan. The statement, released by the External Communications Department, aims to address confusion circulating on social media regarding delays in fund usage after digital transactions.
According to the clarification, all digital fund transfers in Pakistan remain instant — meaning the money sent from one account to another is received by the beneficiary immediately. However, the two-hour cooling period applies only to cash withdrawals, online purchases, or mobile top-ups made through branchless banking wallets like Easypaisa, JazzCash, or similar digital accounts.
What Is the 2-Hour Cooling Period?
The two-hour cooling period is a security feature introduced by the State Bank to protect customers from fraud and unauthorized transactions. It means that although money transfers are completed instantly, users must wait two hours before using those funds for cash-out or online purchases.
For example, if a user receives Rs. 5,000 in their JazzCash wallet at 2:00 p.m., the amount will appear in their balance right away. However, they will only be able to withdraw or spend it after 4:00 p.m.
This delay provides a window of time for the customer or the bank to detect and prevent fraudulent activity before funds are used.
SBP’s Official Statement
In its detailed press release, the SBP stated:
“All digital fund transfers are made on a real-time basis, and beneficiaries receive funds in their accounts almost instantly. The two-hour cooling period is applicable only on cash-out or usage of funds received in branchless banking wallets or accounts.”
The SBP further explained that while digital fund transfers to wallets and bank accounts are processed in real time, withdrawals or spending from branchless banking wallets (such as JazzCash or Easypaisa) require a short delay as part of the Customer Due Diligence (CDD) requirements introduced in April 2023.
Why Was the Cooling Period Introduced?
The two-hour delay was added after the State Bank observed a growing trend of fraudulent digital transactions and scams involving instant fund misuse.
Branchless banking accounts are simpler to open and often used for quick money transfers by millions of Pakistanis, including those without traditional bank accounts. Because these wallets are easier to access, the probability of fraudulent or mistaken transfers is higher.
To counter this risk, the SBP implemented the two-hour window — giving customers time to:
- Verify the sender and amount received.
- Report any suspicious or mistaken transactions.
- Prevent scammers from instantly cashing out stolen funds.
Since its introduction, the SBP reports that the cooling period mechanism has proven effective and served as a robust check against fraudulent activity.
When Does the 2-Hour Rule Apply?
The SBP’s clarification highlights that this rule does not apply to all transactions — only to certain types of fund usage.
| Transaction Type | Transfer Speed | Cooling Period Applies? |
|---|---|---|
| Bank-to-Bank Transfer (IBFT) | Instant | ❌ No |
| Wallet-to-Wallet Transfer (Easypaisa to JazzCash) | Instant | ❌ No |
| Bank-to-Wallet Transfer | Instant | ✅ Yes (for withdrawals/purchases) |
| Wallet Cash-Out | After 2 hours | ✅ Yes |
| Online Purchase from Wallet | After 2 hours | ✅ Yes |
| Mobile Top-Up using Wallet | After 2 hours | ✅ Yes |
This means users can receive money instantly in their branchless wallets but must wait two hours to perform secondary transactions such as withdrawals or payments.
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Background: Introduced in April 2023
The two-hour cooling rule was first implemented in April 2023 under the Customer Due Diligence Framework. It was part of SBP’s broader efforts to modernize Pakistan’s digital financial system while ensuring user safety.
At the time, the SBP had received numerous complaints regarding scams that exploited instant transfer features — particularly where victims realized unauthorized transfers too late.
By introducing a short holding period, the SBP ensured that customers had sufficient time to review and, if necessary, report fraudulent activity before funds could be spent.
How the Cooling Period Helps Prevent Fraud
Fraudulent transactions are one of the biggest challenges in the digital banking ecosystem. Scammers often target customers using fake links, phishing messages, or impersonation tactics to steal money from accounts.
Here’s how the two-hour delay provides protection:
- Fraud Detection Time:
Customers who notice unauthorized transfers can contact their bank within two hours to freeze or reverse the transaction. - Transaction Monitoring:
Banks can analyze transaction patterns and flag suspicious activity before the funds are moved or withdrawn. - Customer Confidence:
The delay builds trust in digital banking by showing that authorities prioritize user protection. - Reduced Instant Misuse:
Scammers cannot immediately cash out stolen funds, which discourages fraudulent behavior.
SBP’s Ongoing Efforts for Secure Digital Banking
The State Bank of Pakistan has been leading multiple initiatives to improve the security and transparency of Pakistan’s growing digital financial ecosystem.
Some of these key measures include:
- Strong Know Your Customer (KYC) Regulations:
Every mobile wallet must now be linked to a verified CNIC to prevent misuse. - 24/7 Fraud Reporting Channels:
Customers can report suspicious transactions through helplines or the Complaints Management System (CMS) of SBP. - Enhanced Monitoring Systems:
Banks and fintech companies are now required to maintain automated fraud detection systems. - Public Awareness Campaigns:
The SBP frequently issues advisories to warn users against phishing scams, fake investment apps, and unauthorized payment links.
Together, these steps aim to ensure that Pakistan’s digital banking revolution remains both efficient and safe for millions of users.
Impact on Branchless Banking Users
Branchless banking services like Easypaisa, JazzCash, and UPaisa are used by over 100 million Pakistanis, particularly in rural areas. The two-hour delay has had a mixed reception among these users:
- Positive Impact:
It has reduced scam cases significantly, especially where fake calls or social engineering were used to steal funds. - Minor Inconvenience:
Some users, however, find the delay inconvenient for urgent cash-outs or mobile top-ups.
Despite this, most financial experts agree that the policy’s security benefits outweigh the short wait time.
How Customers Can Stay Safe
The SBP advises all digital banking users to follow these important security guidelines:
- Never share OTPs or PINs received from banks or wallet services.
- Avoid clicking suspicious links sent via SMS or WhatsApp.
- Verify sender details before accepting funds.
- Enable instant transaction alerts to monitor account activity.
- Report any suspicious transactions immediately to your bank or wallet provider.
By following these precautions, users can enjoy the convenience of digital banking without compromising their security.
Public Response and Social Media Discussion
The clarification comes after widespread discussion on social media, where users questioned why certain payments were delayed even after instant transfers. Some believed that banks were holding funds unnecessarily, but the SBP’s official note confirms that the delay is a protective measure — not a technical fault.
Following the clarification, digital finance experts praised the SBP for maintaining transparency and building customer awareness. Many fintech platforms have since updated their apps to notify users about the cooling period when receiving funds.
Key Takeaways
| Fact | Explanation |
|---|---|
| Funds Transfer Speed | Instant for all digital accounts |
| 2-Hour Rule Applies To | Wallet cash-outs, online purchases, and mobile top-ups |
| Purpose | Fraud prevention and customer protection |
| Introduced | April 2023 |
| Authority | State Bank of Pakistan |
| Status | Still active and effective |
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FAQs – SBP 2-Hour Cooling Period 2025:
Q1: Does this apply to normal bank transfers?
No. Bank-to-bank transfers remain instant and fully accessible without any cooling period.
Q2: Is the rule only for JazzCash and Easypaisa?
It applies to all branchless wallets, including Easypaisa, JazzCash, UPaisa, and other SBP-regulated services.
Q3: Can I withdraw the money before two hours?
No. Cash-outs or purchases will only work after the cooling period ends.
Q4: Why two hours — not more or less?
Two hours was determined to be sufficient for fraud detection and customer reporting, balancing both convenience and security.
Q5: Will this rule continue in the future?
Yes. The SBP stated the policy has worked smoothly for over two years and will remain part of digital banking regulations.
Q6: What if I made a wrong transfer?
You can report it to your bank within two hours to try to freeze or reverse the funds.
Q7: Does it affect businesses receiving payments online?
Businesses get the payment instantly, but they may face a delay before they can withdraw or use the funds.
Q8: How can I know if my wallet applies this rule?
Check your app’s notifications or contact the customer helpline of your service provider.
Conclusion – SBP Clarifies 2-Hour Cooling Period on Digital Fund Transfers in Pakistan
The State Bank of Pakistan’s 2-hour cooling period for digital fund transfers is a security-driven initiative that strengthens public trust in the country’s expanding digital economy. While transfers remain instant, the temporary hold on wallet-based transactions ensures that customers are better protected against scams, mistakes, and unauthorized withdrawals.
By maintaining transparency and educating users through official clarifications, the SBP continues to position Pakistan as a leader in safe, modern, and inclusive digital finance.
