SBP warns banks on currency machines

KARACHI: The State Bank of Pakistan (SBP) on Monday warned banks of legal action in case currency authentication machines were not clarified by June 30.

In a notification issued Monday, the central bank said that banks were required to get their selected cash processing machines cleared from the State Bank of Pakistan by June 30.

“In case of failure, penal action will be taken against non-compliant banks,” the SBP said.

The State Bank of Pakistan in August 2015 launched ‘Currency Management Strategy’ with objectives of disbursing authenticated cash through machines installed by the commercial banks. In the first phase to be completed by January 2, 2017, banks
are required to install machines for disbursing authenticated currency of Rs500 and above.

In the second phase, which will be completed by January 2, 2018, banks are required to disburse authenticated cash in all denominations.

At the time of launching the strategy, the banks were given an option to finalise three types of machines which should meet the SBP sorting/authentication standards.

In the latest notification, the State Bank of Pakistan also warned banks that had made arrangements with other banks to process their cash, of penal action in case the banks with whom they had made the arrangements failed to get their selected machines cleared from the SBP by June 30.

The State Bank of Pakistan further advised the banks to submit the progress report of the strategy on monthly basis instead of quarterly progress reports.