What is IBFT (Interbank Funds Transfer)?
IBFT is an instant transfer of money from an account at one bank to an account at another bank in Pakistan, using the account number or IBAN.
Updated
Meaning
English
IBFT is an instant transfer of money from an account at one bank to an account at another bank in Pakistan, using the account number or IBAN.
Roman Urdu
IBFT ek bank ke account se doosre bank ke account me foran paise bhejna hai, account number ya IBAN ke zariye.
Also called interbank funds transfer, bank transfer, online transfer, IBAN transfer.
Example
A wholesaler receives 210,000 rupees from a retailer by IBFT. The retailer sends a screenshot, but the wholesaler waits until the amount shows in its own bank app, then records the payment against the retailer's khata.
How it works
IBFT runs through Pakistan's interbank switch networks and arrives within seconds for most banks, at any time of day. It is widely used for supplier payments, wholesale trade and large retail purchases. Raast is the newer State Bank system that also moves money instantly between banks and wallets, using a Raast ID instead of the full account number.
For shops, the main risk with any transfer is fake or edited screenshots. Confirm in the shop's own bank app or SMS alert, and record the sender's reference with the payment, so it can be traced later if there is a dispute.
In Nafaa
Nafaa records bank transfers as their own payment method on bills, on khata payments and on supplier payments, and Shop accounts shows each bank account's balance and movements.
Related terms
- Raast
Raast is the State Bank of Pakistan's instant payment system for real-time transfers between bank and wallet accounts, using a Raast ID such as a mobile number.
- Accounts Payable
Accounts payable is the money a business owes its suppliers for goods or services it has received but not yet paid for.
- Khata
A khata is a ledger, traditionally a paper register, that records what each customer owes a shop on credit and what they have paid back.