SBP Clarifies 2-Hour Cooling Period for Digital Wallets

The State Bank of Pakistan (SBP) has issued an official clarification on the two-hour cooling period for digital fund transfers. Recently, several social media posts created confusion about this rule, suggesting all online transfers would face a two-hour delay. However, the SBP has now confirmed that funds are still transferred instantly — only the cash-out and usage of those funds are held for two hours.

What the Cooling Period Actually Means

According to SBP, all digital transfers are processed in real time, and recipients receive funds in their accounts within seconds.
However, this 2-hour delay applies only to branchless banking wallets, such as JazzCash, Easypaisa, UPaisa, and similar services.

This means:

• You can receive money instantly, but
• You cannot withdraw, spend, or use that money for two hours.

👉 Example: If you receive Rs. 5,000 in your JazzCash wallet, you’ll see the balance immediately but won’t be able to withdraw it or make a mobile top-up until two hours have passed.

Why SBP Introduced the Cooling Time

This rule was introduced back in April 2023 as part of SBP’s Customer Due Diligence (CDD) requirements for branchless banking.
Since wallet accounts have simpler KYC procedures, they carry a higher chance of being misused for fraudulent or mistaken transactions.
The 2-hour window provides enough time for users to:

• Detect any wrong transfer or suspicious activity
• Report and stop unauthorized transactions
• Prevent immediate cash-outs by fraudsters

SBP also confirmed that this system has been working smoothly for over two years, acting as a strong safeguard against scams and financial fraud

How It Affects You

If you use JazzCash, Easypaisa, or any branchless banking app, you should note:

• Instant transfer remains available.
• Only the spending or withdrawal is delayed for two hours.
• You can still send and receive payments as usual.

For your safety:

• Always double-check the recipient number before sending.
• Report wrong transfers immediately through your app’s “Help” or “Complain” section.
• Keep your wallet PIN and OTP secure.

SBP’s Official Clarification

The State Bank explained that this rule was introduced to protect customers due to simplified KYC procedures in wallet accounts.
You can verify the clarification on the official State Bank of Pakistan website in the Press Releases section.
For detailed regulatory updates, visit SBP’s Branchless Banking Regulations page.

What This Means for Businesses and Accountants

If you’re a freelancer, business owner, or accountant, this update affects how you manage cash flow and transactions.
At Muhasib & Co, we help individuals and businesses stay compliant with digital banking and tax regulations.

Explore more on:

• Our Services — Accounting, tax filing, and business advisory.
• Income Tax Calculator — Calculate your taxes easily.

We stay updated with all State Bank and FBR rules to keep you informed and compliant.

Key Takeaways

• Transfers are still instant.
• Withdrawals and usage wait 2 hours.
• Introduced in April 2023 for fraud control.
• Works smoothly and keeps your funds safe