Banks to continue offering eligible remittance transfers without customer fees
The State Bank of Pakistan (SBP) has discontinued the government-backed Telegraphic Transfer Charges Incentive Scheme (TTCIS), ending reimbursements previously provided to banks for processing eligible workers’ remittances.
In a circular issued on Thursday, the central bank announced that the scheme officially ended on July 1, 2026. However, it directed all Authorised Dealers (ADs) to continue implementing the programme’s key features despite the withdrawal of government reimbursement.
Under the revised arrangement, banks and other authorised financial institutions must continue ensuring that qualifying home remittance transactions remain free of charge for both overseas senders and beneficiaries in Pakistan.
The central bank also instructed financial institutions to notify customers about the policy change while maintaining uninterrupted remittance services under the existing eligibility criteria.
Banks to absorb transfer costs
With the discontinuation of the incentive scheme, participating banks and authorised institutions will no longer receive compensation from the SBP for telegraphic transfer charges. Instead, they will be responsible for covering the costs of eligible remittance transactions themselves.
The SBP emphasised that customers should continue receiving qualifying remittance services without paying transfer fees, ensuring that overseas Pakistanis and their families remain unaffected by the administrative change.
Financial institutions have also been directed to maintain compliance with all operational requirements associated with the scheme despite the revised funding arrangement.
Programme supported formal remittance channels
The Telegraphic Transfer Charges Incentive Scheme was introduced to encourage overseas Pakistanis to send money through formal banking channels by eliminating transfer costs for eligible transactions. The initiative played a significant role in supporting the country’s remittance inflows and strengthening documented financial transfers.
In July 2025, the SBP updated the programme by increasing the minimum qualifying remittance amount from $100 to $200. At the same time, the central bank expanded the scheme to include exchange companies alongside commercial banks and other authorised dealers.
Although the reimbursement mechanism has now been withdrawn, the SBP’s latest directive ensures that qualifying remittance transfers will continue to be processed free of charge for customers, while banks assume responsibility for absorbing the associated costs.
