SBP issues new instructions on cross border payments State Bank of Pakistan

SBP issues new instructions on cross border payments

KARACHI: State Bank of Pakistan (SBP) on Tuesday issued new instructions related to cross border payments to bring in line with international best practices.

The central bank in a circular stated that as per existing practice, the banks provide payment cases related to Asian Clearing Union (ACU), Cash Reserve Requirements (CRR) & Special Cash Reserve Requirements (SCRR) and Deposits/ Withdrawals from Local US Dollar Instrument Collection and Settlement; through SBP, Banking Services Corporation, Karachi Office (SBP BSC – KO).

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Further, the banks also send their queries with regard to above payment cases to SBP BSC – KO for clarification, guidance and advice.

In order to bring cross border payments in line with international best practices, State Bank of Pakistan (SBP) has re-engineered its business process by centralizing all cross border payments, including above, at the Treasury Operations Department-SBP (TOD-SBP).

Hence, all banks/ Islamic banks are advised to please ensure compliance of following instructions with effect from October 01, 2022.

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All ACU payment cases / letters addressed to Chief Manager “ACU Section” SBP BSC-KO, shall now be submitted to Director, Treasury Operations Department (Director-TOD), SBP, Karachi as per formats attached at annexure ‘A’ & ‘B’.

All banks’ CRR & SCRR deposits & withdrawal cases / letters (FE25) addressed to Chief Manager “DAD Section” SBP BSC-KO shall now be submitted to Director-TOD as per formats attached at annexures ‘C’ & ‘D’.

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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 formats attached at annexures ‘E’ & ‘F’.

Any queries with regard to above payment cases shall now be submitted to Director-TOD for clarification, guidance and advice.

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The contact details of TOD officers and Standard Settlement Instructions (SSIs) of SBP are attached at annexures ‘G’ & ‘H’ for ready reference.

The SBP issued following annexures related to cross border payments:

  1. Annexure A- Letter for Transfer / Purchase of ACU Dollars
  2. Annexure B- Letter for Repatriation / Surrender of ACU Dollars
  3. Annexure C- Letter for CRR & SCRR Deposit
  4. Annexure D- Letter for CRR & SCRR Withdrawal
  5. Annexure E- Letter for Deposit to Local US Dollar Instrument Collection & Settlement Account
  6. Annexure F- Letter for Withdrawal from Local US Dollar Instrument Collection & Settlement Account
  7. Annexure G- Contact Details of Treasury Operations Department, SBP Karachi.
  8. Annexure H- Standard Settlement Instructions (SSIs) of SBP

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