The State Bank of Pakistan (SBP) Wednesday announced reimbursement of TT charges on Dam Fund inflows through home remittance channel sent by overseas Pakistanis. Home remittance transactions are already eligible for reimbursement of TT charges, if the bank and the correspondent entity have not charged their customers any fee or other charges at any stage for sending or receiving the home remittances and secondly the amount of home remittance transaction is not below USD 200 or equivalent in other currencies.
Now, in order to facilitate banks and encourage them to collect more funds for the dam construction, the SBP has announced that Diamer Bhasha and Mohmand Dam Fund inflows, send by overseas Pakistanis will also be eligible for reimbursement of TT charges scheme.
With the announcement of this incentive, banks can now claim reimbursement of TT charges, ie, 20 Saudi Riyal per fund transaction of $200 or equivalent in other currencies through home remittance channel.
According to EPD Circular Letter No. 02 of 2019, issued Wednesday, it has been decided that the amount received by domestic banks from overseas Pakistanis as donations/contributions for the "Prime Minister and Chief Justice of Pakistan Fund for Diamer Bhasha and Mohmand Dam" through home remittance channel will be eligible to be claimed by the domestic banks on account of "Reimbursement of TT Charges Scheme" during FY 2018-19.
As per the process, each transaction will include the name and/or unique reference number of the originator/sender. Banks have been asked to ensure that each transaction is transferred on the same day and no transaction has been split to avail undue benefit under the scheme. All other terms and conditions/instructions of TT charges scheme will remain unchanged, the circular added.
The SBP has advised authorized dealers to bring the same to the notice of all their constituents and failure to comply with the instructions will attract penal action under the relevant provision(s) of Foreign Exchange Regulation Act, 1947. Under the reimbursement of TT charges scheme only one transaction will be eligible for the reimbursement of TT charges irrespective of the number of transactions sent from the same remitter to same beneficiary on the same day.