The State Bank of Pakistan (SBP) has announced a revision to its Reimbursement of Telegraphic Transfer (TT) Charges Scheme, increasing the minimum eligible transaction from $100 to $200 and extending the scheme to include Exchange Companies (ECs).
Effective July 1, 2025, the SBP has also decided to discontinue two major remittance-related incentive schemes, namely the “Incentive Scheme for Marketing of Home Remittances” and the “Exchange Companies Incentive Scheme (ECIS).”
Under the updated TT Charges Reimbursement Scheme, Financial Institutions (FIs) and their Overseas Correspondent Entities (OCEs) are now required to ensure that no fees or commissions are charged to customers at any stage of sending or receiving home remittances.
The revised scheme applies to transactions of $200 or more, and multiple transactions on the same day from the same remitter to the same beneficiary will be considered one transaction for the purpose of eligibility.
The SBP has also introduced a flat rebate structure, offering SAR 20 per eligible transaction. A maximum of five free transactions per month is allowed for each remitter-beneficiary pair through the same OCE.
For the first time, Exchange Companies have been brought under the TT Charges Reimbursement Scheme, broadening the formal remittance channel and providing new opportunities to non-banking financial intermediaries.
However, ECs will be required to surrender 100% of the foreign exchange received on home remittances to the interbank market on the same day.
The SBP has issued directives to ensure compliance with the new rules, including regular audits and monitoring systems for FIs and OCEs. Non-compliance, including attempts to split remittance transactions to gain undue benefits, could lead to penalties, suspension, or debarment from dealing with Pakistani FIs.
