The State Bank of Pakistan (SBP) has made changes to Telegraphic Transfer (TT) Charges Reimbursement Scheme effective from July 1, 2025, allowing only five free remittance transactions per month from a single sender to the same recipient through the same Overseas Correspondent Entity (OCE) under the new framework.
To qualify for reimbursement, each transaction must be at least $200 or its equivalent, up from the previous threshold of $100.
The revised scheme now includes Exchange Companies (ECs), previously excluded, to expand the formal remittance network.
All remittances must be fee-free for both sender and recipient, and multiple transactions from the same sender to the same beneficiary on the same day will be treated as a single transaction. A flat rebate of SAR 20 per qualifying transfer will apply.
ECs are now required to surrender 100% of received foreign currency to the interbank market in US dollars on the same day. Non-remittance transactions remain ineligible.
Moreover, SBP will discontinue two existing incentives: the “Incentive Scheme for Marketing of Home Remittances” and the “Exchange Companies Incentive Scheme (ECIS).” To curb misuse, SBP has directed financial institutions to ensure strict compliance, monitor irregularities, and educate OCEs on the updated regulations.
