Banks di­rected to mod­ernise cash man­age­ment

The Pak Banker - - FRONT PAGE - Staff Re­port

State Bank of Pak­istan (SBP) has is­sued com­pre­hen­sive in­struc­tions for mod­ern­iz­ing cash man­age­ment func­tion of banks. The in­struc­tions are part of a strat­egy for trans­form­ing the cash man­age­ment func­tion from man­ual to au­to­mated en­vi­ron­ment and im­prov­ing the qual­ity of ban­knotes in cir­cu­la­tion.

The banks shall only dis­burse ma­chine au­then­ti­cated and sorted cash to their clients/gen­eral public from their branches/ATMs. For the pur­pose, the banks shall es­tab­lish spe­cial­ized 'Cash Pro­cess­ing Cen­ters (CPC)' hav­ing state of the art cash pro­cess­ing ma­chines and stor­age fa­cil­i­ties. Al­ter­nately, the banks can have the req­ui­site cash pro­cess­ing fa­cil­i­ties at their cash feed­ing branches and/or can make ar­range­ments with other banks/ CPCs to get their cash pro­cessed.

In ad­di­tion, SBP has also in­tro­duced the mech­a­nism of in­ter­bank ex­change / trad­ing of cash whereby from 2nd Jan­uary 2017 the banks will be able to ex­change cash di­rectly from other banks and SBP Bank­ing Ser­vices Cor­po­ra­tion (SBPBSC) win­dow will be used as only a last re­sort to pro­vide cash to the banks in case of short­ages and to ab­sorb ac­cess cash in case of sur­pluses in the mar­ket. With the in­tro­duc­tion of this mech­a­nism from 2nd Jan­uary 2017, the ex­ist­ing fa­cil­ity avail- able to banks for de­posit of re-is­suable ban­knotes with the of­fices of SBP-BSC will cease to ex­ist.

The SBP-BSC of­fices will ac­cept the sur­plus cash only as a last re­sort when this cash could not be placed in the in­ter­bank mar­ket and that too against a ser­vice charge of 0.12% of the to­tal value de­posited. The SBP-BSC shall how­ever con­tinue to ac­cept soiled/un­fit ban­knotes from banks. The tran­si­tion from the ex­ist­ing ar­range­ment will be man­aged in an or­derly man­ner. The ef­fec­tive im­ple­men­ta­tion of the in­struc­tions is likely to trans­form and mod­ern­ize the cash man­age­ment func­tion in the coun­try, bring ef­fi­ciency and trans­parency, check coun­ter­feit­ing of ban­knotes and sig­nif­i­cantly im­prove the qual­ity of ban­knotes in cir­cu­la­tion.

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