SBP issues fresh notes worth Rs 73 billion

The State Bank of Pakistan has issued new currency notes worth Rs 73 billion during Ramazan to facilitate the general public on Eid-ul-Fitr. Sources in the banking sector told Business Recorder that following the rising demand for new currency notes the SBP Banking Services Corporation (SBP BSC) has made extraordinary arrangements for supply of adequate quantity of fresh currency notes, particularly of small denominations, to commercial banks.
A detailed analysis showed that during Ramazan a massive demand of Rs 10 denomination--the smallest currency note--had been witnessed and SBP BSC issued 380.012 million pieces of new currency notes of Rs 10 denomination. Although, the quantity of Rs 10 denomination is much higher than other currency notes, the value stood at Rs 3.8 billion.
Some 97 million pieces, or Rs 1.942 billion worth, Rs 20 denomination notes have been issued to general public. Distribution of Rs 50 was Rs 2.834 billion and Rs 100 denomination stood at Rs 9.489 billion. In addition, Rs 1,000 new notes have been issued worth Rs 47.758 billion, While Rs 500 denomination notes have been issued, worth Rs 7.138 billion, or 14.276 million pieces. However, Rs 5 denomination notes are not being be issued as these notes will cease to be the legal tender from January 1, 2012, and the SBP has already stopped issuing Rs 5 currency notes from January 1, 2011.
Sources said during last Ramazan the SBP issued fresh notes worth Rs 95.5 billion and following the rising demand of the new currency notes, it has estimated that SBP would issue approximately Rs 100 billion worth new notes this Ramazan to facilitate the general public. This year, like previous year, the SBP and its field offices will not issue fresh currency notes to general masses directly. However, for maximum outreach for the issuance of notes the State Bank has also decided to fully utilise the large network of over 9,000 branches of commercial banks for distribution of fresh currency notes of all denominations to the general public during Ramazan. Following SBP directives the Rupees 10 to Rs 5,000 denomination notes will be issued by banks only.
The State Bank has also set up a special complaint cell to address the general public and bank customers' complaints regarding fresh new currency notes. Besides that, the SBP teams are also making surprise visits of different bank branches to check the distribution of new notes and SBP BSC has also penalised some banks for non compliance of SBP's guidelines for issuance of the fresh currency notes, sources said.
It may be mentioned here that SBP has issued new guidelines for the bank branches and the branches of commercial banks will issue only one packet each of Rs 10 and Rs 20 denomination fresh currency notes per person to the visiting general public and account holders from August 18, 2011 till the last working day before Eid (or until the stock ends), on presentation of original Computerised National Identity Card (CNIC) along with a photo copy for record.
For the corporate clients, the SBP has issued different directives and bank branches. However, banks may also issue a maximum of five packets each of Rs 10 and Rs 20 denomination fresh currency notes to their corporate clients on receipt of request on the company's letterhead duly signed by the authorised representative.