KARACHI: The State Bank of Pakistan (SBP) has discontinued the Telegraphic Transfer Charges Incentive Scheme (TTCIS), which reimbursed banks for charges on remittances of workers, effective July 1, 2026.
The central bank announced the decision in a circular issued on Thursday.
Authorised Dealers (ADs) have been directed to continue implementing the scheme at their own expense, preserving its key features despite the withdrawal of government reimbursement.
The SBP has also instructed ADs to ensure that home remittance transactions meeting the criteria of the scheme remain free of cost for both senders and beneficiaries. Banks and other authorised institutions will no longer receive government support under the TTCIS but must continue absorbing the cost of qualifying transfers.
The circular further directed financial institutions to inform their customers about the change.
The TT Charges Scheme, also known as the Reimbursement of TT Charges Scheme, was introduced by the SBP to promote the use of formal banking channels for home remittances. Under the scheme, remittance transactions above a specified threshold carry zero cost for both sender and recipient in Pakistan.
In July last year, the SBP revised the scheme by raising the minimum eligible transaction limit from $100 to $200 and expanding its coverage to include Exchange Companies.
