SBP closes reimbursement scheme for remittance transfer fees

The State Bank of Pakistan (SBP) has slashed a government-backed incentive scheme that reimbursed banks for telegraphic transfer charges on workers’ remittances. 

In a circular issued on Thursday, the central bank said the Telegraphic Transfer Charges Incentive Scheme (TTCIS) had been discontinued with effect from July 1, 2026. “However, the Authorized Dealers (ADs) shall continue to implement the scheme at their end while preserving its key features,” read the circular. Moreover, the SBP has instructed ADs to ensure that home remittance transactions meeting the criteria laid down in the above-mentioned circular letter remain free of cost for the senders and beneficiaries of home remittances.

The move means banks and other authorised institutions will no longer receive support under the TTCIS but will still be required to absorb the cost of qualifying remittance transfers.

The circular also directed financial institutions to inform their customers about the change. The Telegraphic Transfer (TT) Charges Scheme, also referred to as the Reimbursement of TT Charges Scheme, is an incentive initiative launched by the State Bank of Pakistan (SBP) to promote home remittances through formal banking channels.