SBP issues procedure for exchange firms to disburse remittances through Raast without charging any fee

The State Bank of Pakistan (SBP) on Friday issued a detailed procedure allowing exchange companies to disburse inward home remittances through Raast, following its earlier approval for such transactions to strengthen digital payments and improve remittance efficiency.

Under the revised framework, exchange companies that have obtained prior approval and completed onboarding requirements may credit remittances directly to beneficiaries’ bank accounts or wallets through Raast. The central bank said the move supports the national objective of promoting a cashless economy and enhancing transparency in remittance flows.

According to the directives, an approved exchange company may enter into an agreement with an authorised bank for Raast-based disbursement, subject to compliance with terms set by the SBP. The exchange company will not charge any fee to beneficiaries under the free-send model and will be responsible for providing required information to the bank for issuance of an Electronic Proceeds Realisation Certificate (e-PRC).

The SBP said any agreement must conform to its regulatory framework, including anti-money laundering and know-your-customer requirements, and cannot be amended without prior approval. Exchange companies have also been advised to submit revised agreements to the central bank’s relevant department for record before commencing operations.

The facility allows beneficiaries to receive remittances in accounts and wallets maintained with banks, microfinance banks and electronic money institutions, the SBP said.

The move was welcomed by Malik Bostan, chairman of the Exchange Companies Association of Pakistan, who said the facility would reduce transaction time and eliminate the need for beneficiaries to visit exchange company offices. He said the SBP has allowed exchange companies to partner with the Bank of Punjab, Habib Bank Limited, United Bank Limited and Bank AL Habib for Raast-based remittance disbursement.

Bostan said the initiative aligns with efforts to channel remittances through formal systems and is expected to support higher documented inflows. He said Pakistan is projected to receive about $42 billion in workers’ remittances by the end of the current fiscal year, compared with $38 billion in the previous year.