Direct payment facility for investment in mutual funds introduced

Islamabad: The State Bank of Pakistan (SBP) introduced direct payment facility for investing in mutual funds.

According to details, the Central Depository Company (CDC) has signed a partnership agreement with State Bank under which investors can purchase mutual funds through its direct payment gateway.

The statement told that Deputy Governor Salimullah of State Bank was the chief guest at the signing ceremony at CDC House.

On this occasion, Salimullah appreciated CDC's continuous efforts and initiatives for digitization and customer convenience. He emphasized that the primary objective of all digitization efforts is to provide convenience to consumers.

The Deputy Governor SBP said that the introduction of direct payment facility for mutual funds will provide the much-needed convenience to mutual fund investors and help in expanding the investor base.

Director General of central bank highlighted the importance of RAAST and said that it will play an important role in the digitalization of the country's payment system.

He added that since its inception in 2021, RAAST has been successfully processing more than one million transactions per day. So far, more than 33 million unique RAAST IDs have been created and more than 267 million transactions worth Rs5.4 trillion have been made.

“There is a lot of scope for innovation in this sector and designing consumer-centric investment products will provide maximum savings opportunities to consumers,” he emphasized.

Securities & Exchange Commission of Pakistan (SECP) Commissioner Mujtaba Ahmed Lodhi said Central Depository Company (CDC) is working with  SECP to create and improve the regulatory framework for the mutual fund industry.

We are happy to witness the success of many such initiatives by CDC and provide market growth, greater efficiency and better convenience to investors, added Commissioner.

CDC Chief Executive Officer Badiuddin Akbar said the implementation of this project is part of CDC's strategy to strive for new and unique solutions based on technology and innovation to improve business for market participants including investors and asset management companies.