Banks and exchange companies must continue offering free home remittance transactions despite withdrawal of central bank incentive
KARACHI: The State Bank of Pakistan (SBP) has discontinued the Telegraphic Transfer Charges Incentive Scheme (TTCIS) with effect from July 1, 2026, while directing banks and exchange companies to continue providing free home remittance services to senders and beneficiaries.
In a circular issued on Thursday to the presidents and chief executives of all authorised dealers, microfinance banks and exchange companies, the central bank announced the withdrawal of the incentive scheme that had been operating under EPD Circular Letter No. 04 of 2025.
According to the SBP, although the Telegraphic Transfer Charges Incentive Scheme has been discontinued, authorised dealers (ADs) must continue implementing the scheme at their own expense while preserving its key features.
The central bank instructed authorised dealers to ensure that all eligible home remittance transactions meeting the criteria specified in the 2025 circular remain free of charge for both senders and beneficiaries.
The directive means overseas Pakistanis sending money through approved banking channels will continue to enjoy cost-free remittance services despite the withdrawal of the SBP-funded incentive.
The SBP also directed all authorised dealers, microfinance banks and exchange companies to immediately inform their customers and stakeholders about the revised arrangements.
The Telegraphic Transfer Charges Incentive Scheme was introduced to encourage the use of formal banking channels for inward home remittances by eliminating transaction charges for eligible transfers. With its discontinuation, participating financial institutions will now be responsible for maintaining the free remittance service without reimbursement from the central bank.
The move reflects the SBP’s continued commitment to promoting formal remittance inflows while shifting the responsibility for maintaining free telegraphic transfer services to authorised dealers and financial institutions.