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In order to streamline the ATM operations in Pakistan, State Bank of Pakistan (SBP) has decided to transfer the settlement of interbank ATM transactions from MCB Bank and ABN Amro Bank to SBP.
The settlement is to be made in banks' current accounts maintained at Karachi Office SBP BSC (Bank). This will be effective from October 01, 2007. The switches and their respective member banks are required to comply with new guidelines including that Link and MNet shall prepare bank wise statements of all ATM transactions executed through respective switches between 00:00:00 to 23:59:59 (hh:mm:ss).
The central bank said that both switches shall submit the net position of receivables and payables (interbank, intra-switch) to Karachi Office SBP BSC (Bank) on or before 12:30 pm in the format already agreed, to debit/credit the concerned banks' current accounts and the net position report must be signed by authorised persons of the switches.
For settlement of interbank, intra-switch ATM transactions, MCB Bank Limited, through the authorised persons, shall submit to Karachi Office SBP BSC (Bank) on or before 12:30 pm one combined net position of receivables and payables in the format already agreed, to debit/credit the concerned banks' current accounts maintained at Karachi Office SBP BSC (Bank), the bank added.
The central bank said that switches shall also report the same net positions to the respective member banks so that their treasury departments can ensure timely action to cover net shortfall or manage surplus in their accounts with Karachi Office SBP BSC (Bank).
Switches to submit separate report for any subsequent adjustments in previous statements along with the net position of the day as per agreed format.
Karachi Office SBP BSC (Bank) will only debit/credit the current accounts of banks on the basis of net off positions provided by the switches and will inform the concerned banks and switches accordingly.
Switches shall maintain complete details (ie date wise, bank wise) of clearing and adjustments for inspection purpose, while switches shall immediately update the Karachi Office SBP BSC (Bank) in case of any change in the profile of their authorised signatories. All clearing related activities other than settlement shall continue to be performed by the respective switches on behalf of their member banks as per agreed procedures.

Copyright Business Recorder, 2007

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