KARACHI: In order to further streamline the cross-border payments, the State Bank of Pakistan (SBP) has announced to reengineer its business process by centralizing all cross-border payments at the SBP’s Treasury Operations Department with effect from 1st October, 2022.
As per current practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and deposits or withdrawals from local US Dollar instrument collection & settlement through State Bank of Pakistan, Banking Services Corporation, Karachi Office (SBP BSC - KO).
Further, currently, the banks also send their queries with regard to above payment cases to SBP BSC-KO for clarification, guidance and advice.
Now, in order to bring cross border payments in line with international best practices, State Bank has decided to re-engineer its business process by centralizing all cross-border payments, including ACU, CRR & SCRR and deposits or withdrawals from local US Dollar instrument collection & settlement, at the Treasury Operations Department-SBP (TOD-SBP).
The SBP has advised all banks (Authorized Dealers) including all Islamic Banks in Foreign Exchange to ensure compliance of fresh directives with effect from 1st October, 2022.
As per fresh instructions, all ACU payment cases/letters addressed to Chief Manager “ACU Section” SBP BSC-KO, shall now be submitted to the Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats provided by the SBP.
All banks’ CRR & SCRR deposits & withdrawal cases addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD.
In addition, all local US Dollar deposits & withdrawals cases from Instrument Collection & Settlement (FE2) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per described formats. Now, banks and DFIS have been asked to queries with regard to above payment cases to submit to the Director-TOD for clarification, guidance and advice.
Copyright Business Recorder, 2022
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