Category: Money & Banking

Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.

SBP directs banks to close all government accounts under TSA

KARACHI: State Bank of Pakistan (SBP) has started implementing Treasury Single Account (TSA) and directed all banks to close all accounts related to government authorities.

In a communication issued on Wednesday, the SBP said that the Finance Division, Government of Pakistan (GoP) vide their letter F.No.1(1)/S.O(TSA)/2020 dated August 19, 2020 has directed all Federal Government Ministries, Divisions, Attached Departments and Subordinate Offices (MDAS) to close their banks accounts with the commercial banks/financial institutions and transfer the balance funds to the Federal Government’s Central Account No.I (non-food) with SBP.

The banks have been directed that their branches would receive the ”Account Closure Request” from the respective authorized signatories on the specified format issued by Finance Division (annexure B of aforesaid letter) for closure of such bank accounts and transfer of balances therein to SBP.

In this regard, following instructions are issued to banks for meticulous compliance:

a. In line with the instructions of authorized signatories, the banks shall close all such accounts and transfer their balances to SBP for onward credit to the Federal Government’s Central Account No.I (non-food).

b. In order to ensure closure of all the accounts and transfer of their balances to SBP through a standardized procedure, banks are hereby advised to develop their internal applications and processes to keep track of the i). Receipt of directives by the authorized signatories; ii). Closure of accounts by banks’ branches and transfer of available balances to their centralized treasury and iii). Transfer of the consolidated amount by the centralized treasury to the SBP through RTGS.

c. Upon receipt of account closure request, the respective branches will initiate the closure of accounts and transfer the available balances to their centralized treasuries within seven (07) days through their internal application referred in (b) above.

d. The respective branches shall convey the following details to their centralized treasuries, through standardized internal application referred in (b) above.

1. Names of Administrative/controlling ministries

2. Names of Government Departments/Institutions

3. Account Titles

4. IBANs

5. Balances Transferred

6. Branch Code

e. The centralized treasury of each bank shall transfer the aggregate amount of deposits surrendered by its branches on daily basis to SBP through RTGS Message Type (MT-202) for onward credit to the Federal Government’s Central Account No.I (non-food). The MT-102 shall invariably mention reference phrase “Government Deposit Transferred to Central Account-I (non-food)”.

f. The banks’ centralized treasuries shall forward the details of such closed accounts to SBP Banking Services Corporation (BSC) Karachi Office as per Annexure I.

October 7, 2020
SBP issues carrot, stick policy for banks on housing loan targets

KARACHI: The State Bank of Pakistan (SBP) has adopted a policy of carrot and stick for banks related to mandatory targets for housing/construction financing.
(more…)

October 7, 2020
Rupee strengthens by 29 paisas against dollar

KARACHI: The Pak Rupee strengthened by 29 paisas against dollar on Tuesday owing to improved inflows of export receipts and workers’ remittances.

The rupee ended at Rs164.03 to the dollar from previous day’s closing of Rs164.32 in interbank foreign exchange market.

Currency experts said that the market witnessed sufficient supply of the foreign currency to meet demand for import and corporate payments.

They said that the sentiments were remained positive in the market due to escalating economic activities.

The experts said that the exports registered 18.24 percent growth to $1.873 billion during September 2020 as compared with $1.58 billion in August 2020.

They hoped that present positivity in the market would help the local unit to make gain further against the greenback.

October 6, 2020
Meezan Bank honored with many titles at CFA Awards

KARACHI: Meezan Bank has been awarded with many titles by the CFA Society of Pakistan, a member society of the CFA Institute, USA at its 17th Annual Excellence Awards ceremony held on October 2, 2020.

A statement issued on Monday said that the bank had been declared as the ‘Best Bank of the Year’ and ‘Best Islamic Bank of the Year’ – 2019.

The Bank has also been recognized as the ‘Corporate Finance House of the Year – Debt’ in recognition of its investment banking performance, providing ground-breaking tailored solutions and advisory services to blue chip corporate clients.

Irfan Siddiqui – President and CEO, Meezan Bank and Ariful Islam – Deputy CEO, Meezan Bank received the awards from Dr. Reza Baqir – Governor, State Bank of Pakistan who graced the occasion as the Chief Guest.

This is the first time that CFA Society of Pakistan has recognized Meezan Bank on an overall industry basis as the ‘Best Bank of the Year’, competing with some of the largest local and conventional players. The Bank has previously been recognized multiple times by the organization for its excellence in providing Islamic financial services to meet the needs of its diverse set of clients.

As a pioneer of Islamic banking in Pakistan, Meezan Bank leads the Islamic finance industry, reaching a broad customer base with competitive, Shariah-compliant products and services.

Commenting on the win, Irfan Siddiqui – President & CEO, Meezan Bank said, “We are honored to receive these awards from the CFA Society of Pakistan. This notable recognition reflects our commitment towards Shariah-compliant banking and the continuous effort and commitment that we have invested in over the years to strengthen our offering.

October 5, 2020
Rupee gains 19 paisas against dollar

The Pakistani Rupee gained 19 paisas against the US Dollar on Monday, closing at Rs164.32 compared to the previous closing rate of Rs164.51 on October 2, 2020, in the interbank foreign exchange market. This appreciation is attributed to reduced demand for import payments, market dealers reported.
(more…)

October 5, 2020
Rupee gains 49 paisas against dollar on inflows of export receipts, remittances

KARACHI: The Pak Rupee gained 49 paisas against dollar on Friday owing to improved inflows of workers’ remittances, dealers said.

The rupee ended Rs164.51 to the dollar from previous day’s closing of Rs165.00 in interbank foreign exchange market.

Currency experts said that during the day the market had witnessed supply from banks in the shape of export receipts and workers’ remittances.

They said that during the week the positive sentiments and improved inflows helped the local units to make gain.

The local currency gained around Rs1.28 against the dollar during the week. The experts said that the rupee had support from inflows besides surplus current account and reduction in trade deficit.

October 2, 2020
SBP softens quarantine for banknotes processed through certified machines

KARACHI: State Bank of Pakistan (SBP) on Friday relaxed the condition for banks of ensuring 14-day quarantine period for those banknotes processed through machines certified by Pakistan Council of Scientific and Industrial Research (PCSIR).

The SBP said that it had imposed a condition on May 04, 2020 under which banks were advised to quarantine cash collected from the public for fourteen (14) days before re-issuing the same.

The SBP further said that the 14- day quarantine for banknotes was introduced in line with the international practices and World Health Organization (WHO) guidelines.

In view of availability of a number of banknote disinfection machines and technologies, it has been decided that the banks shall have the option to either continue with the fourteen (14) days quarantine requirements or process banknotes through Pakistan Council of Scientific and Industrial Research (PCSIR) certified machines in lieu of the fourteen (14) days quarantine.

The banks procuring such machines shall ensure that the PCSIR certificate specifically mentions the capacity of the machine to disinfect Bacteria and Viruses including the SARS-CoV-2 that causes COVID-19.

October 2, 2020
Rupee gains 70 paisas against dollar

KARACHI: The Pak Rupee gained 70 paisas against dollar on Thursday owing to inflows of export receipts and workers’ remittances, dealers said.

The rupee ended Rs165.00 to the dollar from previous day’s closing of Rs165.70 in interbank foreign exchange market.

Currency dealers said that the inflows of export receipts and workers’ remittances had supported the rupee to make gain.

On the other hand, the demand for the greenback was eased after the quarter end (July – September), which also supported the rupee.

The currency experts said that the rupee may strengthen further in coming days owing to positive economic indicators.

October 1, 2020
List of customer information to be verified by banks under latest AML regulations

KARACHI: The State Bank of Pakistan (SBP) on Wednesday issued the Anti-Money Laundering, Combating the Financing of Terrorism & Counter Proliferation Financing (AML/ CFT/ CPF) Regulations for banks and other financial institutions, which shall supersede previous regulations/instructions.

Under the new regulations, the SBP issued the list of information, which the banks and financial institutions shall require to verify customer identity.

List of Information Required for Customer Identity

A. Basic Identification Information

1. Full name as per identity document

2. Mother Maiden name

3. Date of Birth

4. Place of Birth

5. Permanent Address

6. Identity document number, whichever applicable

7. Date of expiry of applicable identity document

B. Other basic information

8. Father/ spouse name as per identity document

9. Date of issuance of applicable identity document

10. Contact Number: Mobile Number (s)/ Land Line Number

11. Purpose of account/ transaction/ business relation

12. Beneficial ownership/ controlling rights

C. Other relevant Information for natural persons, as applicable

13. Current/ Mailing Address

14. Personal Email Address (as applicable)

15. Nationality – Resident/ Non-Resident Status

16. FATCA/ CRS Declaration, wherever required

17. Profession/ Source of Income/ Funds: Salary, Business, investment income

18. Next of Kin

19. Attested Passport Size Photo (in case of Photo Account instructions)

20. Live Photo (in case of digital onboarding)

D. Information for Legal Persons/ Legal Arrangements

1. Registration/ incorporation number or business registration number (as applicable)

2. Date of incorporation or registration of legal person or arrangement (as applicable)

3. Place of incorporation or registration of legal person or arrangement (as applicable)

4. National Tax Number (NTN)

5. Nature of business, geographies involved and expected type of counter-parties (as applicable)

6. Registered or business address

7. Intended nature of business relations

8. Purpose of account or transaction (where accounts are not maintained and transactions are done by walk in/ occasional customers)

9. Type of account/ financial transaction/ financial service

10. Expected monthly credit turnover (amount and No. of transactions)

11. Normal or expected modes of transactions/ delivery channels

12. Wherever instructed/ advised, regulatory limits imposed such as: credit and debits/ deposit and withdrawals/ execution of financial transaction/ types of financial services allowed/ restricted.

E. Additional Information in case of ”Trusts”

13. Whether the Trust is a Public Trust or Private Trust including foreign and national trust

14. Trust Deed whereby the Trust has been created;

15. Details of Settlor (this will also be available in the Trust Deed);

16. Objects of the trust (this will also be available in the Trust Deed);

17. Trustee of the trust (whether trustee is associated person of the settlor);

18. Description of each class or type of beneficiary (this information may also be checked from Trust Deed);

19. Details of any possibility of influence of any other person on trustee regarding management and control of trust property;

20. In the case of “Private Trust” if the beneficiary of a trust is also the beneficial owner of the trust, identification and verification of the beneficiary is required otherwise the name and CNIC of each beneficiary of a trust should be obtained.

September 30, 2020
Rupee gains 18 paisas against dollar on inflows

KARACHI: The Pak Rupee strengthened by 18 paisas against dollar on Wednesday owing to inflows of workers’ remittances and export receipts.

The rupee ended Rs165.70 to the dollar from previous day’s closing of Rs165.88 in interbank foreign exchange market.

Currency experts said that the rupee strengthened owing to strong inflows of the foreign currency in the shape of workers’ remittances and export receipts.

They said that the demand for the greenback was remained higher during the day for imports and corporate payments.

The experts said that usually by quarter end the demand for the foreign currency on the higher side as foreign companies repatriate their profits to their parent companies.

However, they said that substantial inflows helped the local units to make gain.

September 30, 2020