Karachi, November 01, 2023 – In a groundbreaking move, the Central Depository Company (CDC) has joined hands with the State Bank of Pakistan (SBP) to introduce a digital payment solution for investors, allowing them to purchase mutual fund units conveniently.
This initiative marks a significant step toward digitalization and customer facilitation in the financial sector.
CDC, as an “Aggregator,” has developed a framework that issues a RAAST Payment ID, enabling investors to digitally transfer funds using the SBP’s RAAST Payment Gateway to their respective Asset Management Companies (AMCs) for the purchase of mutual fund units.
The official launch of this innovative service took place at the CDC House, with Saleem Ullah, the Deputy Governor of SBP, serving as the Chief Guest. Deputy Governor SBP – Saleem Ullah commended CDC’s relentless efforts and initiatives for digitalization and customer convenience. He emphasized that the primary goal of these digitalization efforts is to enhance customer satisfaction and convenience. Saleem Ullah expressed that the introduction of RAAST payments for Mutual Funds will significantly improve the experience for mutual fund investors and contribute to the expansion of the investor base.
The significance of RAAST was highlighted by the Deputy Governor of SBP, who emphasized that RAAST plays a pivotal role in the digitization of Pakistan’s payment system. Since its launch in 2021, RAAST has successfully processed over 1 million transactions daily. Over 33 million unique RAAST IDs have been created, with over 267 million transactions amounting to Rs. 5.4 trillion paid and settled through RAAST. The recent introduction of the RAAST Payment-to-Merchant (P2M) feature promises to revolutionize the digital payment landscape by allowing merchants and vendors to initiate ‘Request-to-Pay’ for their customers.
The Deputy Governor encouraged Asset Management Companies (AMCs) to integrate the Raast P2M feature into their mobile applications or portals, enabling investors to make payments directly from their registered accounts. He underlined the untapped potential for innovation and the importance of designing customer-centric investment products to offer more savings opportunities to individual customers.
Mujtaba Ahmad Lodhi, Commissioner of the Securities and Exchange Commission of Pakistan (SECP), also commended CDC’s consistent efforts in collaboration with SECP for formulating and refining the regulatory framework for the mutual fund industry. He expressed satisfaction at witnessing the successful realization of pioneering initiatives by CDC, SBP, and SECP, which contribute to market development, increased efficiency, and enhanced investor facilitation.
Badiuddin Akber, CEO of CDC, spoke at the event, highlighting the project’s alignment with CDC’s strategy to leverage technology and innovation to simplify the investment process for market participants, particularly Asset Management Companies (AMCs). He expressed gratitude to SBP and SECP for their unwavering support in bringing innovative tech-based solutions to the market.
Moin Fudda, Chairman of CDC, extended his gratitude to SBP for their continued support in CDC’s market development endeavors. The event also witnessed the presence of Ms. Mashmooma Zehra Majeed, CEO of the Mutual Funds Association of Pakistan (MUFAP), along with CEOs and senior executives from the mutual fund industry, all of whom praised CDC’s role in advancing market development and facilitating investors.
This collaborative effort between CDC and SBP through the RAAST Payment Gateway is set to transform the way investors purchase mutual fund units, making the process more accessible and convenient for individuals looking to invest in Pakistan’s financial markets.
