KARACHI: The State Bank of Pakistan (SBP) has directed banks to transfer the consolidated amount of Export Development Surcharge (EDS) deductions directly to the SBP instead of National Bank of Pakistan (NBP).
The State Bank in terms of Revenue Division, Government of Pakistan notification dated January 4, 2003, prescribed mode and manner of deduction of EDS and its deposit at the National Bank of Pakistan (NBP) vide EPD Circular Letter No. 2 dated January 22, 2003.
However, now the SBP has modified the procedure and accordingly issued revised instructions.
SBP takes steps aimed at timely realisation of export proceeds
According to SBP effective from May 10, 2023, banks will transfer the consolidated amount of EDS deductions directly to the SBP through Real Time Gross Settlement (RTGS) system rather than depositing the same at NBP. Banks branches deducting EDS shall transfer the amount to their main RTGS branch on daily basis, the SBP directed the banks.
The main RTGS branch will arrange to transfer the consolidated amount of EDS on T+1 basis (T being deduction date) to SBP through RTGS for onward credit to Export Development Fund (EDF) in the account.
Concurrently, banks have been asked to report the details of individual exporters through SBP’s Data Acquisition Portal (DAP). Banks will specifically mention their unique reference number both in DAP filing as well as in Bank Credit Advice (BCA) filed with Customs authorities for reconciliation and reference purposes.
The aggregate amount of individual transactions will invariably match the amount transferred through RTGS. The SBP has warned that any instance of misreporting will be dealt with in accordance with penal provisions of Banking Companies Ordinance, 1962 and penalty scale issued thereof by the SBP.
Banks have been advised by the SBP to ensure meticulous compliance of these instructions and undue retention of Government funds by the banks will attract penalty as costs of funds at the penal rate of 1.5 times of the SBP’s Ceiling Rates of retention dates.
Copyright Business Recorder, 2023
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