On May 20, 2026, the State Bank granted Raqami Islamic Digital Bank its commercial licence, making it Pakistan's first Shariah-compliant digital retail bank. No branches, onboarding by CNIC and selfie, and June 2026 deposit rates that embarrassed the incumbents: 10.00-11.00% on savings by tier and up to 11.50% on a one-year term deposit. Digital Islamic banking in Pakistan has been promised for years. In 2026 it finally has a licensed, full-fledged flagbearer, plus serious competition from incumbent apps. Here is the honest picture.
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What Raqami actually is
Raqami is sponsored by Pakistan Kuwait Investment Company and Kuwait's EnerTech, chaired by H.E. Abdullah Al-Mutairi and run by CEO Umair Aijaz. It was one of five applicants that received NOCs under the SBP's 2022 digital banks framework, and reached commercial launch in May 2026. Having no branches, it rides Askari Bank's physical network for cash: deposits at 700+ Askari branches and withdrawals up to Rs 100,000 per transaction at 800+ Askari ATMs, free, plus free withdrawals at any ATM nationwide. The board bench is deep for a startup, including Jehan Ara and former senior executives of Samba, MCB, Allied and Meezan.
The Shariah governance is the part that should reassure skeptics. Raqami's five-scholar board is chaired by Sheikh Dr. Mufti Muhammad Imran Ashraf Usmani, vice chairman of Meezan's Shariah supervisory board, and includes Mufti Hassaan Kaleem, vice chairman of Dubai Islamic Bank Pakistan's board. The bank publishes its Shariah certificate and product fatwas, states alignment with the SBP's Shariah Governance Framework, and has adopted AAOIFI standards. This is not a fintech that discovered religion in a pitch deck; the scholarly supervision is first-tier.
Products and rates, with dates
The shelf at launch: a non-remunerative current account (fatwa published), a Mudarabah savings account, term deposits at 7-day, 1-month, 3-month, 6-month and 1-year tenors with auto-reinvest, goal-based Saving Pots that earn profit, and a PayPak debit card with in-app controls. The Asaan Digital Account tier is capped at Rs 3 million; the Full Digital Account is uncapped. June 2026 published rates: savings 10.00% up to Rs 500,000, 10.50% to Rs 1 million, 11.00% above; term deposits from 10.00% (7-day) to 11.50% (1-year). For comparison, the best June 2026 savings declaration among established banks was HabibMetro Sirat's 8.48%.
Now the context those numbers need. At its December 2025 launch, Raqami's rates were a flat 7.30-7.80%. They rose roughly 300 basis points in six months while the market drifted the other way. That is deposit-acquisition pricing from a new bank building a book, and it is genuinely good for early customers, but assume it normalises eventually. There is also a disclosure gap that matters: Raqami does not publish its profit-sharing ratio or weightages, which BankIslami and the major windows all do. And its savings page mixes 'expected' and historical rate language without always labelling which is which. High rate, thinner paperwork.
What Raqami does not have yet
No financing products: no home, car or personal finance at launch, though a supply-chain financing MOU was signed in May 2026. No takaful, no investments, no track record; the bank is months old. If you need credit, cheques or a full-service relationship, Raqami is a savings engine bolted to a payments app, not yet a primary bank. Many savers will treat it exactly that way, parking a capped Asaan account balance at 10%+ while banking elsewhere, which is a perfectly rational use.
The rest of the digital field
BankIslami's AIK, billed as Pakistan's first Islamic digital banking service, gives you a full-fledged Islamic bank (569 branches behind it) with instant account opening, and its June 2026 general savings pool declared 7.8355% with published 50:50 profit sharing. Mashreq Bank Pakistan, a digital retail bank that reached scheduled-bank status in September 2025, brands itself Islamic-first with a three-scholar Shariah board, but publishes both Islamic and conventional rate sheets, so treat it as a window in digital clothing. Bank Alfalah's Alfa app runs a digital-only Islamic TDR that paid up to 8.97% in June 2026, a full point and a half above its own branch TDRs. The pattern across the market: digital channels pay more because they cost the bank less. Compare the current digital and branch rates on HalalWallet's bank accounts page.
Frequently asked questions
Is Raqami a real bank regulated by the State Bank?
Yes. Raqami Islamic Digital Bank Limited received its SBP commercial licence on May 20, 2026 under the digital banks framework, and states it is regulated by the State Bank of Pakistan. It operates app-only, with cash services through Askari Bank's branch and ATM network.
How does Raqami pay 10-11% when big banks pay 7-8%?
Partly economics, partly strategy. A branchless bank has lower costs, and a new bank pays above market to attract deposits; Raqami's rates climbed from 7.30-7.80% at its December 2025 launch to 10.00-11.50% by June 2026. The premium is real money while it lasts, but it is a growth-phase price, not a structural promise.
Is Raqami's Shariah compliance credible?
Its five-scholar Shariah board is chaired by Dr. Muhammad Imran Ashraf Usmani of Meezan's supervisory board, with Mufti Hassaan Kaleem of Dubai Islamic Bank Pakistan among the members, and the bank publishes its Shariah certificate and account fatwas. The gap is operational disclosure: no published profit-sharing ratio or weightages yet, which incumbents provide.
Can I do all my banking on Raqami?
Not yet. At launch Raqami offers deposits, payments and a debit card, with no financing, takaful or investment products. The Asaan tier also caps balances at Rs 3 million. It works best today as a high-yield halal savings destination alongside a full-service Islamic bank.
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What is the safest way to try digital Islamic banking?
Open with an amount you can afford to move, confirm the institution's licence and named Shariah board, and prefer products with published declared rates. Raqami, BankIslami's AIK and Bank Alfalah's Alfa Islamic TDR all clear the governance bar; they differ on rates, track record and product depth.