The State Bank of Pakistan will issue new currency notes worth approximately Rs 100 billion during Ramazan to facilitate the general public. Sources said the SBP Banking Services Corporation (SBP BSC) has made extraordinary arrangements for the supply of adequate quantity of fresh currency notes particularly of small denominations to commercial banks depending upon their branch network.
This year, however, Rs 5 denomination notes will not be issued as these notes will cease to be the legal tender with effect from January, 1, 2012 and the SBP has already stopped issuing Rs 5 currency notes with effect from January 1, 2011. In addition, banks have also stopped issuing Rs 5 notes with effect from July 1, 2011. Rupees 10 to Rs 5,000 denomination notes will be issued like previous years. Moreover, Rs 500 bigger size notes will cease to be the legal tender from 1st October 2011.
Sources said during last Ramazan the SBP had issued fresh notes worth Rs 95.5 billion and following the rising demand of the new currency notes, the SBP intends to issue Rs 100 billion worth new notes this Ramazan. For maximum outreach for the issuance of notes the State Bank has also decided to fully utilise the large network of over 9,000 branches of commercial banks for distribution of fresh currency notes of all denominations to the general public during Ramazan. However, the SBP and its field offices will not issue fresh currency notes to general masses directly.
The SBP has issued new guidelines for the bank branches and the branches of commercial banks will issue only one packet each of Rs 10 and Rs 20 denomination fresh currency notes per person to the visiting general public and account holders from August 18, 2011 till the last working day before Eid (or until the stock ends), on presentation of original Computerised National Identity Card (CNIC) along with a photo copy for record. For the corporate clients, the SBP has issued different directives and bank branches, however, may also issue a maximum of five packets each of Rs 10 and Rs 20 denomination fresh currency notes to their corporate clients on receipt of request on the company's letterhead duly signed by the authorised representative.
The State Bank has also set up a special complaint cell to address the general public and bank customers' complaints regarding fresh new currency notes. Besides that the SBP teams will also make surprise visits of different bank branches to check the distribution of new notes. With a view to redressing the grievances of the general public, if any, in obtaining fresh currency notes from commercial banks, the SBP BSC has established a Help Desk.
The SBP BSC has put in place a mechanism for penalising the banks in case any irregularity is committed by them in issuance of the fresh currency notes. Penalty will also be imposed on banks found violating SBP instructions with regard to the issuance of notes to the general public on the eve of Eid.