The State Bank of Pakistan (SBP) Monday asked banks to strictly ensure the payment of all types of non-transferable bills to real beneficiaries instead of third parties.
According to a circular, State Bank has observed that some of the banks are following a general practice of crediting amount of wheat bills issued by the provincial governments into the accounts of third parties (instrument bearers) instead of crediting the accounts of real beneficiaries, which are mainly growers.
Funds are transferred to a person in possession of a wheat bill mostly commission agent of the grain markets despite the fact that "non-transferable" is clearly mentioned on the face of such wheat bill. This non-customary practice being adopted by some bank branches has been viewed seriously, the SBP said.
"All banks are henceforth advised by SBP to strictly ensure the payment of all types of non-transferable bills/receipts including wheat bills to real beneficiaries instead of third parties," the central bank said.
The SBP has warned that any violation of the above instructions shall attract penal action under the relevant provisions of the Banking Companies Ordinance, 1962.