Karachi: The State Bank of Pakistan (SBP) has brought up an incentive scheme for the encouragement of home remittances.
Central Bank issued the notifications that stated to promote domestic banks/micro finance banks which are offering incentives on home remittance payment service. The promotion regarding the new scheme has been started.The government will repay these expenses via SBP.
According to the scheme projected by the government, Re1 per incremental US Dollar will be remunerated if home remittances surpass 15% growth in FY19 comparatively to that obtained in FY18.
According to terms and conditions this scheme will be valid to all the banks, micro-finance companies and exchange companies that present home remittances disbursement services as per the rules.
The banks/micro finance banks/exchange companies have to be eligible for the criteria to enjoy the scheme.
It should be noted that necessary marketing and promotion will be needed to create awareness regarding this scheme.
However this scheme will be for one year at first and all the banks and exchange companies will be compensated towards the end of the years based their performance.
SBP has issued directions for the opening of Home Remittance Account (HRA) to encourage home remittances via branch less banking.