AGL 38.15 No Change ▼ 0.00 (0%)
AIRLINK 122.24 Increased By ▲ 0.73 (0.6%)
BOP 5.90 Increased By ▲ 0.05 (0.85%)
CNERGY 3.72 Decreased By ▼ -0.03 (-0.8%)
DCL 8.30 Decreased By ▼ -0.10 (-1.19%)
DFML 40.60 Decreased By ▼ -0.29 (-0.71%)
DGKC 84.73 Increased By ▲ 0.13 (0.15%)
FCCL 32.90 Increased By ▲ 0.20 (0.61%)
FFBL 65.97 Increased By ▲ 0.47 (0.72%)
FFL 9.92 Decreased By ▼ -0.13 (-1.29%)
HUBC 104.00 Increased By ▲ 0.20 (0.19%)
HUMNL 13.20 Decreased By ▼ -0.05 (-0.38%)
KEL 4.45 Increased By ▲ 0.02 (0.45%)
KOSM 7.08 Decreased By ▼ -0.01 (-0.14%)
MLCF 37.70 Increased By ▲ 0.20 (0.53%)
NBP 60.45 Increased By ▲ 0.20 (0.33%)
OGDC 170.50 Decreased By ▼ -1.75 (-1.02%)
PAEL 24.75 Decreased By ▼ -0.05 (-0.2%)
PIBTL 5.77 Increased By ▲ 0.07 (1.23%)
PPL 141.95 Increased By ▲ 0.26 (0.18%)
PRL 22.80 Increased By ▲ 0.08 (0.35%)
PTC 14.63 Decreased By ▼ -0.11 (-0.75%)
SEARL 64.70 Increased By ▲ 0.14 (0.22%)
TELE 7.09 Decreased By ▼ -0.05 (-0.7%)
TOMCL 35.51 Increased By ▲ 0.01 (0.03%)
TPLP 7.33 Increased By ▲ 0.04 (0.55%)
TREET 14.20 Decreased By ▼ -0.08 (-0.56%)
TRG 51.79 Increased By ▲ 0.04 (0.08%)
UNITY 26.70 Increased By ▲ 0.10 (0.38%)
WTL 1.22 No Change ▼ 0.00 (0%)
BR100 9,516 Increased By 33.2 (0.35%)
BR30 28,447 Increased By 76.5 (0.27%)
KSE100 89,156 Increased By 188.9 (0.21%)
KSE30 27,758 Decreased By -69.3 (-0.25%)

The State Bank of Pakistan has announced that it will slap Rs 10,000 penalty on banks, if they dispensed forged notes through Automated Teller Machine (ATMs). In order to improve the quality of banknotes in the circulation and to encourage commercial banks to introduce modern currency handling equipment and practices, SBP has issued some new instructions and penalties.
According to Finance Department (FD) Circular No 2/2013, sent to presidents and CEOs of all banks including Microfinance Banks, in order to promote better currency management practices in the banking industry the SBP has introduced three new scales of penalties.
The SBP has advised bank to implement the new instructions, however, any violation/non-compliance would result in penalisation by SBP under the Banking Companies Ordinance 1962 and other relevant laws of SBP as per announced scale.
"Banks should accept all the legal tender coins including Re1, Rs 2 and Rs 5 and provide banknotes-coins exchange facility to all customers and general public, while in case of violation a penalty of Rs 2,000 per instance will be imposed by the regulator," the circular said.
In addition, banks have been advised by the SBP to strictly ensure that the forged notes should not be dispensed through ATMs. Banks will be penalised by Rs 10,000 per note plus value of banknote, if they failed to comply with the instructions. Similarly, the State Bank has also warned banks for repetition of any irregularity. "Banks shall avoid repetition of any irregularity pointed out in the previous report and repetition of any irregularity will attract additional penalty besides fine on routine violation. This additional fine will be Rs 10,000 per instance, the circular said.
According to SBP all other instruction issued earlier regarding currency management and monitoring will remain unchanged. While appeals against the refund of penalty imposed in violation of instruction contained in Finance Department's Circular No 1 & 2 and Circular No 1 of August 19, 2012 with regard to "Issuance of Fresh Notes" or any other instruction from time to time regarding currency management may be sent to Director Finance Department SBP.
Sources said as on March 5, 2004, SBP issued a Master Circular on Cash Management - Monitoring as soiled, cut and mutilated currency notes were in circulation in large quantity, which is causing inconvenience to the general public.
Therefore, taking cognisance of the fact, SBP constituted a "task force on currency management," which recommended various measures, they added. Under the cash management and monitoring system, SBP's special teams conducted surprise visits to banks branches periodically to examine the quality of currency notes being issued by banks to their clients and general public from their counters. Several penalties have already been announced by SBP to improve cash management in the banking industry, while the new instructions will also support to further streamline the cash management, they said.

Copyright Business Recorder, 2013

Comments

Comments are closed.