SBP Limits Free Monthly Remittances to Five Under New Rules

The State Bank of Pakistan (SBP) has introduced new changes to its Telegraphic Transfer (TT) Charges Reimbursement Scheme, which will now allow only five free remittance transactions per month from a single sender to the same recipient through the same Overseas Correspondent Entity (OCE).

As per the revised framework, each qualifying transaction must be at least “$200 or its equivalent”, an increase from the previous $100 limit. To further support formal channels, Exchange Companies (ECs) are now included in the scheme for the first time.

For eligibility, the remittance must be completely fee-free for both sender and receiver. Additionally, “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 will be given for every qualifying transaction.

In a move to regulate the remittance process further, Exchange Companies must surrender 100% of the received foreign currency to the interbank market in US dollars on the same day. However, non-remittance transactions are still not eligible under this scheme.

Meanwhile, SBP has announced that it will discontinue two current incentive programs:

1. Incentive Scheme for Marketing of Home Remittances
2. Exchange Companies Incentive Scheme (ECIS)

To prevent abuse of the scheme, SBP has directed all concerned financial institutions to strictly monitor compliance, check for any irregularities, and educate OCEs on the updated rules.