The State Bank of Pakistan (SBP) has discontinued a government-backed incentive scheme under which banks were reimbursed for telegraphic transfer (TT) charges on remittances sent by overseas Pakistanis.
In a circular issued on Thursday, the central bank announced that the Telegraphic Transfer Charges Incentive Scheme (TTCIS) has been abolished with effect from July 1, 2026. However, licensed dealers, including banks and financial institutions, will continue offering the scheme at their own expense while retaining its key features.
The SBP also directed licensed dealers to ensure that eligible home remittance transactions meeting the criteria outlined in the circular remain completely free of charge for both remitters abroad and beneficiaries in Pakistan.
The decision means banks and other authorized institutions will no longer receive government reimbursement or financial support under the TT charges scheme. Instead, they will be required to absorb the cost of qualifying transactions themselves. Financial institutions have also been instructed to inform their customers about the change.
The Telegraphic Transfer Charges Scheme, also known as the TT Charges Reimbursement Scheme, was introduced by the SBP to encourage overseas Pakistanis to send money home through formal banking channels.
It ensured that remittance transactions above a specified threshold incurred no charges for either the sender or the recipient.
