State Bank amends rules for remittance fees reimbursement

KARACHI: The State Bank of Pakistan (SBP) on Tuesday asked banks to provide information of both the remitter and beneficiary so that the central bank could reimburse them the service fees on handling home remittances. 

The SBP said it has amended procedure for the ‘reimbursement of Telegraphic Transfer (TT) charges against home remittances’ for banks, claiming reimbursement on those services for which they haven’t charged any fee from their customers.

The State Bank made it mandatory for banks to provide the required details. 

As per the amended procedure, banks are required to declare name of remitting bank/exchange company, remitter, passport number of remitter and the name of beneficiary.

“Transactions of home remittances will be treated as eligible for reimbursement of TT charges where the bank and the correspondent entity had not charged their customers any fee or other charges at any stage for sending or receiving the home remittances,” said the central bank. 

 “The amount of home remittance transaction should not be below $200 or equivalent in other currencies for participating in this scheme.” 

On June 1, 2015, the transaction limit of $200 was increased. But, this was cut to $100 through a notification issued in November 2000.

The State Bank of Pakistan said banks could claim charges on only one transaction for the reimbursement of Telegraphic Transfer charges irrespective of the number of transactions sent from the same remitter to the same beneficiary on the same day.

“The transaction contains accurate identity of both remitter and beneficiary,” it said. 

The State Bank of Pakistan said the reimbursement rate per eligible home remittance transaction is in 20 Saudi Riyals.

The reimbursement rate was reduced from SR25 in June last.

The banks were also directed to provide a certificate of claims, mentioning that the claims contain accurate identities of both remitter and beneficiary.