SBP to issue fresh notes via 9,000 bank branches

SBP decided to utilise the network of over 9,000 branches of commercial banks for distribution of fresh currency.

KARACHI: The State Bank of Pakistan (SBP) has said that it has decided to fully utilise the huge network of over 9,000 branches of commercial banks for distribution of fresh currency notes to the general public during Ramazan.

For this purpose, elaborate arrangements have been made for supply of adequate quantity of fresh currency notes of all denominations in general and small denominations (Rs5 to Rs50) in particular to commercial banks depending upon their branch network, the State Bank said in a press release on Thursday.

However, the SBP cautioned that it will penalise banks in case of any irregularity in issuance of fresh currency notes. In Ramazan last year, it had recovered Rs20.25 million from banks whose branches violated the instructions in issuance of fresh notes.

The SBP said each of the 16 field offices of its Banking Services Corporation will provide fresh notes to the designated branch of every commercial bank. These branches will be responsible for delivery of currency notes in quantities commensurate to the size of the branch. Branches, however, may also issue a maximum of five packets each of Rs5 and Rs10 denomination to their corporate clients on receipt of request on the company’s letter head.

Published in The Express Tribune, August 13^th, 2010.