KARACHI – State Bank made new changes to Telegraphic Transfer (TT) Charges Reimbursement Scheme to make remittance process smooth and expanding formal channels.
From New Fiscal Year, the minimum transaction amount required to qualify for TT charge reimbursement has been raised from $100 to $200. The scheme has also been extended to include Exchange Companies (ECs) amid shift in remittance policy to boost inflows through non-bank channels.
For first time, Exchange Companies will now be eligible to claim TT reimbursements, provided they surrender 100pc of the foreign currency received from inward home remittances to the interbank market in US dollars on the same day.
As per SBP rules, financial institutions and their overseas correspondent entities (OCEs) are prohibited from charging any fees or commissions to either the sender or recipient at any stage of a home remittance transaction. The new rules also stipulate that multiple transactions sent by the same individual to the same recipient on the same day will be treated as a single transaction.
A maximum of five qualifying transactions per month will be allowed from a single remitter to the same beneficiary through the same OCE. Each qualifying transaction will receive a flat rebate of SAR 20, as per the updated structure.
In addition to these changes, SBP announced discontinuation of two incentive programs, Incentive Scheme for Marketing of Home Remittances” and Exchange Companies Incentive Scheme (ECIS).” Both schemes have officially ended as of July 1.
To prevent abuse of TT reimbursement facility, the central bank has implemented strict compliance protocols. Overseas partners found engaging in unethical practices—such as splitting transactions to claim multiple rebates or withholding foreign currency—could face suspension or blacklisting.
