SBP unveils instructions on banknote packaging

In order to standardise the cash packaging practices, the State Bank of Pakistan (SBP) has issued "banknotes packing instructions" for preparation of banknote packets and bundles. The State Bank and SBP Banking Services Corporation (SBPBSC) have been making efforts to ensure adequate supply of good quality banknotes across the country.
The currency management strategy issued in August 2015 is amongst the key initiatives taken for the purpose. As the strategy has prescribed a mechanism for Interbank Trading of Cash (ITC), it is important that the cash to be traded and/or surrendered to SBP is packed properly and consistently.
Therefore, the SBP has issued banknotes packing instructions under the currency management strategy. These instructions will be applicable for banknotes to be traded in interbank market and/or to be surrendered to SBPBSC According to FD Circular No. 02/2017, the currency management strategy is aimed at reforming the currency management function from manual to automated environment, enhance banks' capacity to segregate the fit and genuine banknotes from unfit, soiled and counterfeit banknotes and improve the quality of banknotes in circulation.
As there will be frequent exchange of cash both within the banking industry and between the banks and SBPBSC after the implementation of the strategy, it is important that the cash to be traded in the interbank market and/or surrendered to the SBP is packed properly, uniformly and consistently. Thus, in order to standardise the cash packing processes and practices, these instructions have been prepared by the SBP.
These instructions provide details for preparation of packets and bundles of banknotes besides prescribing a mechanism for generating special alpha-numeric codes for each bundle of banknotes. The specifications of cash trays to be used for surrender of sorted and packed cash to the offices of SBPBSC have also been prescribed. According to these instructions on suspected counterfeit banknotes, the machine rejected banknotes categorised as suspected counterfeit will be surrendered to SBPBSC for further examination along with the particulars of banknote(s) and the name of branch from whose cash the banknote is detected within 48 hours of detection.
Banks will be required to maintain a proper branch-wise log of such suspected counterfeit banknotes. The SBPBSC after verification will impound the counterfeit banknotes whereas the bank will be given credit for the notes found genuine after verification. Implementation of these instructions will be in a phased manner in one year starting April 3, 2017 to April 2, 2018, to give banks a reasonable time to acquire requisite capacity for adoption of these standardised packing and transportation mechanism.