SBP introduces new rules for remittance rebate scheme

The State Bank of Pakistan (SBP) has updated the rules for its remittance rebate scheme, starting from July 1, 2025. The changes apply to commercial banks, microfinance banks, and exchange companies handling remittances from abroad.

Under the new rules, financial institutions will only receive a flat rebate of 20 Saudi Riyals (SAR) for remittances of $200 or more. In the previous financial year, the rebate was SAR 20 per $100 transaction, and SAR 30 per $100 in 2023–24.

Another important update is that banks and their overseas partners must not charge any fee, commission, or charges to customers at any point during the remittance process. If a sender sends multiple payments to the same person on the same day, it will be counted as one transaction for rebate purposes.

Also, only five free transactions per month are allowed from the same sender to the same receiver through the same channel.

These changes are part of SBP’s effort to promote larger legal remittances and reduce the use of illegal methods like hawala and hundi. The move comes after remittance inflows reached a record high of $35 billion in the first 11 months of the last financial year, with a projected total of over $38 billion.

The banking sector is also working on digital channels to make the legal transfer of money faster and more secure for overseas Pakistanis.

Read More: BISP Update: Payments Paused on July 1, 2025 – Details Inside