SBP enhances limit to $5,000 for pension transactions under home remittance services

SBP enhances limit to $5,000 for pension transactions under home remittance services

KARACHI: State Bank of Pakistan (SBP) on Monday enhanced the limit of pension transactions up to $5,000 per month under home remittance services.

According to a circular issued by the SBP the transactions limits by individuals under various categories had been enhanced to $5,000 per month from $1,500 per month.

The limits have been enhanced to facilitate overseas Pakistanis.

The central bank on October 22, 2018 allowed banks and exchange companies to effect Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings along with terms and conditions.

The limits defined under circular issued on October 11, 2019 were $1,500 for: freelance of computer and information system services; other freelance services; and pension transactions.

In the latest circular, the SBP said that ll other instructions on the subject shall remain unchanged.

The SBP said that before finalization, exchange companies are required to forward draft of all addendum/new agency agreements.

The SBP will provide its input, if any, on the draft addendum/new agreement but the ultimate responsibility to adequately safeguard their interest would remain on the exchange companies.

Furthermore, the AD’s failure to comply with the above mentioned instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947.

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