The Central Depository Company (CDC) has partnered with the State Bank of Pakistan (SBP) to enable investors to purchase mutual fund units using the SBP’s RAAST Payment Gateway.
CDC has created a structure in which it functions as a “Aggregator” and issues a Raast Payment ID. Allowing investors to digitally transfer monies to the relevant Asset Management Company (AMC) for the purchase of mutual fund units using Raast.
Mr. Saleem Ullah, Deputy Governor SBP, was the Chief Guest at the event, which took place at CDC House. Deputy Governor SBP Saleem Ullah, who officiated the occasion, expressed his thanks for the CDC’s persistent efforts and initiatives for digitization and consumer facilitation.
He highlighted that the primary goal of all digitalization efforts should be to improve consumer convenience and satisfaction. He stated that the establishment of the RAAST payments facility for Mutual Funds will provide mutual fund investors with much-needed ease and would help to expand the investor base.
The DG SBP emphasized the significance of RAAST, stating that it will serve as a pivot for the digitization of the country’s payment system. He stated that RAAST has been running smoothly since its inception in 2021. Successfully processing over 1 million transactions per day.
Over 33 million unique RAAST IDs have been issued to far, and over 267 million transactions worth Rs. 5.4 trillion have been paid and cleared using RAAST. He also mentioned that the RAAST Payment-to-Merchant (P2M) function, was just announced. It will transform the country’s digital payment ecosystem.
In addition, it enables merchants and vendors to initiate ‘Request-to-Pay’ for their consumers. Allowing them to make payments by simply accepting the request.
He urged AMCs to include Raast P2M functionality in their mobile applications or portals. Allowing investors to pay directly from their registered accounts. Moreover, he noted that this is an untapped area for innovation and that developing customer-centric investment solutions will provide individual clients with more and better savings options.
Mujtaba Ahmad Lodhi, Commissioner of SECP, praised the event, saying, “CDC has consistently worked directly with SECP for developing. Also strengthening the Regulatory framework for the investment fund industry.”
It is encouraging to see the successful implementation of many such pioneering measures by CDC in partnership with SBP and SECP. As well as the continuous progress toward market expansion, increased efficiency, and investment facilitation.
“This project’s implementation is part of the CDC’s policy of constantly seeking new and inventive techniques based on technological developments and innovation in order to improve ease of doing business for investors and customers (AMCs in this case),” stated CEO CDC Badiuddin Akber at the ceremony.
Furthermore, he stated, “We are grateful to SBP and SECP for their ongoing support and patronage, which has enabled us to develop such innovative technology-based solutions.”
Chairman CDC Moin Fudda thanked the audience and thanked SBP for their ongoing support in the CDC’s market development efforts. CEO MUFAP Mashmooma Zehra Majeed.
He also thanked the CEOs and senior executives from the mutual fund industry, attended the ceremony. Moreover, he complimented CDC’s efforts in launching this program and playing a role in market development.
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