All Exchange Companies

Dear Sirs,

Permission for Establishment of Payment Booths/ Outlets.

In order to facilitate and further promote Home Remittances, all Exchange Companies established under F.E. Circular No. 09 dated July 30, 2002 are hereby authorized to establish Payment Booths after obtaining prior approval from Exchange Policy Department (EPD), SBP, Karachi, specifically for the purposes of payments in Pak Rupees of Home Remittances to the beneficiaries in Pakistan against funds to be received by the Exchange Companies from abroad.

The establishment of Payment Booths/ Outlets will be subject to following terms and conditions:

1) Exchange Companies would enter into exclusive agreement with other entities / proprietors etc. for setting up of Payment Booths at their business premises, approved by SBP, incorporating therein the only permissible activity, terms & conditions, duties and Liabilities of each contracting party. Once the agreement is finalized and principally approved by the SBP, the attested photocopies of such agreements would be forwarded to EPD, SBP for record.

2) Payment Booths / Outlets shall have a separate and identifiable set up which may consist of a glass or wooden cabin of an appropriate size within the premises of a well-known business entity.

3) Records of all transactions are required to be maintained, also for the purposes of submission of the same to SBP in such form, as may be required.

4) Other than payments in local currency to the beneficiaries against Home Remittances, Payment Booths shall not be allowed to undertake any other business activity.

5) Appropriate Signboards must be displayed at such booths mentioning the words “Payment Booth” and name of the Exchange Company. Prominent signs both in Urdu and English should be placed clearly indicating that the facility is “Restricted for payment of Home Remittances only”.

6) For the purpose of a Payment Booth, a separate settlement account shall be opened / maintained for the purposes of receiving credits from the Exchange Companies for onward payment of Home Remittances to the beneficiaries.

7) SBP shall hold the Exchange Company fully responsible for violation of related rules and shall have the right to take direct action against any or both the parties involved as it may deem fit. Operations and records of such Payment Booths will be subjected to SBP’s inspection as and when considered appropriate by the SBP.