SBP discontinues govt-backed TTCIS scheme

RIZWAN BHATTI

KARACHI: The State Bank of Pakistan (SBP) on Thursday discontinued the government-backed Telegraphic Transfer Charges Incentive Scheme (TTCIS) for home remittances with effect from July 1, 2026, while directing banks, microfinance banks and exchange companies to continue providing eligible home remittance services free of charge to both senders and beneficiaries.

This incentive scheme for financial institutions was introduced in 2009 to encourage formal home remittance inflows through the banking channel. Initially available only to banks, the facility was extended to exchange companies last year. Under the scheme, banks, Exchange Companies and Microfinance Banks received a flat rebate of SAR 20 on each eligible home remittance transaction of USD 200.

The federal government has now decided to withdraw the incentive scheme, reportedly because rebate payments had risen to billions of rupees in recent years.

In a circular issued on Thursday, the SBP announced that the TTCIS would stand discontinued with effect from July 1, 2026. However, it has directed Authorized Dealers (ADs) to continue offering eligible home remittance services free of charge to both senders and beneficiaries, while preserving the scheme’s key features.