SBP Designates NIFT as Payment System Operator

The State Bank of Pakistan (SBP) has officially designated National Institutional Facilitation Technologies (NIFT) as a Payment System Operator, strengthening the company’s regulatory standing under Section 4(1) of the Payment Systems and Electronic Fund Transfer Act, 2007.

The designation, granted under the Payment System Designation Framework, 2017, represents an important development in NIFT’s institutional evolution and formally acknowledges its significant role in Pakistan’s payment and financial-market infrastructure.

NIFT said the new status would strengthen its collaboration with the SBP, commercial banks and other participants across the financial sector as it continues efforts to modernise the country’s wider payment ecosystem.

The company identified the modernisation of cheque clearing, accelerated digital transformation and broader adoption of electronic payment platforms as key priorities for the coming period. According to NIFT, these initiatives support the SBP’s objective of developing a payment system that is more secure, efficient and inclusive.

NIFT currently operates Pakistan’s interbank cheque-clearing infrastructure through a centralised Image-Based Clearing System, which is supported by 27 processing centres located across the country.

Building on its longstanding relationships with banks and financial institutions, NIFT is also expanding its technological capabilities. These include cheque truncation, digital cheque services, centralised intelligence and validation analytics, as well as secure digital payment solutions.

The company said its expanded capabilities are aimed at responding to the rapidly changing requirements of Pakistan’s financial sector and supporting the transition towards more digital and efficient payment processes.

The latest regulatory designation is being viewed as a major step in NIFT’s development, moving the company beyond its role as a conventional licensed payment operator and recognising it as an institution of systemic importance within Pakistan’s evolving financial infrastructure.

The move also reflects the growing importance of technology-driven payment systems as Pakistan continues to expand digital financial services and strengthen the security and efficiency of its banking ecosystem.