KARACHI: The State Bank of Pakistan (SBP) has allowed Exchange Companies (ECs) to become sub-agent of banks (Authorized Dealers) for disbursement of home remittances.
In order to facilitate the disbursement of home remittances through a wide network, the SBP has decided to allow the disbursements of inward home remittances by Exchange Companies as sub-agent of Authorized Dealers (ADs).
According to the SBP, Exchange Companies are now allowed to enter into agreements with ADs to act as their sub-agents for disbursement of home remittances in PKR to beneficiaries, received by ADs through their international tie-ups.
The SBP has advised Exchange Companies to ensure the SBP guidelines for home remittance disbursement as a sub-agent of ADs. However, as an agent of ADs, Exchange Companies will not be able to get the incentive on the home remittances.
“No home remittances related incentive, as provided by the Government of Pakistan, will be claimed by the Exchange Companies for the transactions disbursed as sub-agent of an AD,” the SBP said.