Qudsia Bano

The State Bank of Pakistan (SBP) is set to formally launch its upgraded payment and settlement system, PRISM+ on August 19, according to a document shared by the central bank.

According to the central bank, the PRISM+ represents a significant technological leap and will introduce greater efficiency, transparency, and security in the handling of large-value transactions and government securities.

The system is built on the internationally recognized ISO 20022 messaging standard, which is already in use in many advanced financial systems worldwide. PRISM+ is composed of two main components: an upgraded Real-Time Gross Settlement system for high-value interbank payments and a newly established Central Securities Depository to manage government securities such as Treasury Bills, Pakistan Investment Bonds, and other instruments.

The upgraded RTGS will enable real-time transfer of large payments between banks while also allowing future-date scheduling of transactions and priority-based settlement of important payments, the bank stated. Banks will have access to live dashboards to monitor balances, pending transactions, and settlement statuses, with the system automatically calculating fees and invoices.

On the securities side, the CSD will simplify both primary and secondary market operations by allowing banks to submit bids in government securities auctions with instant results, conduct secondary market trading with quick settlement, manage pledged collateral with greater ease, and support open market operations of the central bank with immediate effect, according to the SBP.

The SBP emphasized that PRISM+ has been designed with a strong focus on transparency and security. Every transaction will carry a full audit trail, while role-based access will ensure that only authorized personnel can initiate or approve actions. Real-time alerts will immediately notify participants of any issues during the settlement process, thereby reducing risks and ensuring the smooth functioning of the system.

According to the SBP, another major highlight of PRISM+ is the introduction of advanced liquidity management tools. The system will utilize liquidity-saving queues to ensure that high-priority payments are settled immediately, while lower-priority transactions are batched to reduce congestion.

Banks will also have the option to earmark reserves for critical systems such as Raast, 1Link, NIFT, or NCCPL, ensuring that essential transactions are not delayed due to liquidity pressures. Additionally, the Intraday Liquidity Facility will allow banks to access short-term funding by using eligible government securities, providing them with flexibility to maintain settlement operations even during cash shortfalls.

Further improvements include longer operating hours, the ability to process payment cancellations and return messages in real time, and the facility for banks to deposit or withdraw cash at the SBP Karachi office for specific operations. Collectively, these features are expected to make Pakistan’s payment and settlement environment faster, safer, and more resilient.

The central bank noted that the development of PRISM+ was carried out in close consultation with stakeholders from across the financial sector to ensure the system reflects global best practices while addressing the unique needs of Pakistan’s markets. The project has been implemented in alignment with SBP’s Vision 2028, which seeks to establish a modern, inclusive, and technology-driven financial ecosystem.

Financial experts told WealthPK that the launch of PRISM+ will not only enhance the operational capacity of banks but also strengthen overall market confidence and align Pakistan’s financial sector more closely with international standards. With the launch, the system is expected to mark the beginning of a new era of digital efficiency in Pakistan’s financial landscape.

Credit: INP-WealthPk