Tag: banknotes

Karachi, November 14, 2023 – The State Bank of Pakistan (SBP) has taken a significant step towards standardizing the banknote sorting parameters of processing machines, ensuring uniformity across various models and makes.

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KARACHI: The State Bank of Pakistan (SBP) on Friday directed all commercial banks and microfinance banks to display messages to create awareness in general public regarding last date for exchanging old design banknotes.

The SBP said that the last date for exchanging the old banknotes of denominations of Rs10, 50, 100 and 1000 is December 31, 2022.

READ MORE: Last date extended to exchange old banknotes: SBP

The central bank said that it had issued FD Circular No.2 of 2015 dated June 11, 2015, regarding demonetization of old design banknotes of Rs. 10, 50, 100 and 1000, and cessation of legal tender status of these banknotes with effect from December 01, 2016.

Thereafter, these old design banknotes were exchangeable only from the offices of the SBP Banking Services Corporation offices up till December 31, 2021.

READ MORE: Old currency notes can be exchanged till December 2022

The Federal Government vide Gazette Notification F.No.2 (1) IF-III/2010 dated December 23, 2021, has extended the last date of exchange of these old design banknotes from the field offices of the SBP Banking Services Corporation up till December 31, 2022.

In order to enhance public awareness about extension in last date of exchange of these old design banknotes from the field offices of SBP Banking Services Corporation, the banks are advised to make the following arrangements on immediate basis:

READ MORE: SBP’s instructions on pensioners biometric verification

— Ensure display of message regarding the last date of exchange of old design banknotes at their websites. The message shall remain visible at their websites up to December 31, 2022.

— The messages shall be shown through an interactive web icon displaying attached poster regarding extension in the last date of exchange of old demonetized banknotes along with separate video message.

READ MORE: SBP continues banking relaxations amid rising COVID cases

KARACHI: State Bank of Pakistan (SBP) has extended the date for banks regarding issuance of machine authenticated Rs50 banknotes.

In a notification issued on Thursday, the central bank said that considering the difficulties faced by banks in machine processing of lower denomination banknotes under the Currency Management Strategy (CMS), it had been decided to extend the effective date for issuance of machine authenticate Rs50 banknotes until January 4, 2021.

The banks are however encouraged to gradually adopt machine processing and authentication of Rs50 banknotes.

Earlier, the banks were required to process lower denomination banknotes under the CMS from January 02, 2020.

The SBP on August 31, 2017 issued Currency Management System, which is as follow:

Considering the various aspects of implementation and feedback of the stakeholders, the following changes have been made in the strategy:

I. Sealed Cassettes based feeding of ATMs:

The instructions contained at section C (iii) of FD Circular No.03/2015 dated August 26, 2015 regarding use of standardized purpose built cassettes for feeding of ATMs shall stand amended as under:

a) The requirement of cassette based feeding of ATMs has been made optional for the time being. The banks are however encouraged to plan for gradual movement towards cassette based feeding to comply with our instructions. SBP will continue to monitor the situation on periodic basis for a policy decision.

b) The banks may alternatively use sealed bags or trays for feeding of ATMs. However the banks shall ensure that sealing and unsealing of bags/trays and replenishment of ATMs is carried out under proper CCTV controlled environment.

c) The on-site ATMs can be fed by their respective branches provided that the end to end process from cash processing to ATM feeding is covered by CCTV cameras.

d) Other requirements as advised under section C of FD Circular No.03/2015 dated August 26, 2015 shall remain applicable.

II. Application of Strategy on lower banknote denominations:

The instructions contained at section-I of FD Circular No.01/2016 dated January 25, 2016 regarding implementation of phase-II of strategy for all denomination of banknotes w.e.f. 2nd January 2018 shall stand amended as under:

a) The banks will start disbursing machine authenticated banknotes of Rs 100 w.e.f. 2nd January 2018 and Rs 50 w.e.f. 2nd January 2019 respectively.

b) The lower banknote denominations of Rs 20 and Rs 10 have been excluded from Currency Management Strategy.

III. Banknote Packing Instructions (BPI)

The Banknote Packing Instructions issued vide FD Circular No.02/2017 dated March 10, 2017 shall stand amended as under:

a) The effective date of instructions contained at section 1.2 and 1.3 of BPI has been extended from 3rd July 2017 to 1st December 2017.

The banks may deposit the cash processed and packed by other bank(s) with SBP BSC or offer the same in IEC. The earlier requirement that the cash processed and packed by the depositing bank can only be deposited with SBP BSC or offered for exchange in IEC shall stand withdrawn. However, in case of any discrepancy, the bank which has processed and packed the cash shall be responsible.

KARACHI: State Bank of Pakistan (SBP) on Tuesday said it has all the records related to destructed old design Rs500 banknotes. The central bank also denied media report about record missing of such banknotes.

In a statement, the SBP said that apropos news item appearing in a section of media regarding unavailability of record pertaining to destruction of old design Rs.500 banknotes.

“The SBP categorically denies and rejects the media reports regarding unavailability of the record of old design Rs.500 banknotes demonetized in Oct 2012.”

The destruction of banknotes is an ongoing activity and is carried out across the country at field offices of SBPBSC, the record for the same is available in respective field offices.

“The Audit team however, just visited SBPBSC Karachi and assumed that the record available at Karachi is the total record available with the SBP, which is factually incorrect,” the SBP said.

“The complete record of banknote’s destruction is available at SBPBSC field offices located in 16 cities across the country,” it added.

KARACHI: State Bank of Pakistan (SBP) will issue bank notes bearing signature of SBP Governor Dr. Reza Baqir from August 30, 2019.

A statement issued by the central bank on Thursday said that it will start issuing banknotes bearing the signature of SBP Governor Dr. Reza Baqir with effect from August 30, 2019 from the field offices of SBP Banking Services Corporation.

The banknotes bearing the signatures of his predecessors will continue to remain in circulation as legal tender, the SBP said.

Dr. Reza Baqir on May 05, 2019 assumed the charge of Governor State Bank of Pakistan after President of Pakistan appointed him as Governor State Bank of Pakistan for a period of three years in pursuance of Section 10(3) of the State Bank of Pakistan Act 1956.

Dr. Reza Baqir has eighteen years of experience with the IMF and two years with the World Bank.

He was the Head of the IMF’s Office in Egypt and Senior Resident Representative since August 2017.

He has also held positions as IMF Mission Chief for Romania and Bulgaria, Division Chief of the IMF’s Debt Policy Division, Head of the IMF delegation to the Paris Club, Deputy Division Chief of the IMF’s Emerging Markets Division, IMF Resident Representative to the Philippines, and numerous other positions.

Dr. Baqir’s research has been published in top journals of the economics profession, including the Journal of Political Economy and the Quarterly Journal of Economics.

Dr. Baqir holds a Ph.D in Economics from the University of California at Berkeley and an A.B. (Magna cum Laude) in Economics from Harvard University.