SBP facilitates banks in banknotes machine processing

• The banks are encouraged to gradually adopt machine processing and authentication of Rs. 50 banknotes, says SBP.

As part of State Bank of Pakistan's (SBP) Currency Management Strategy, the central bank has decided to extend the effective date for issuance of machine authenticated Rs. 50 banknotes until 2021.

“Considering the difficulties faced by banks in machine processing of lower denomination banknotes under the Currency Management Strategy (CMS), it has been decided to extend the effective date for issuance of machine authenticated Rs. 50 banknotes until January 4, 2021,” read a SBP Circular Letter No. 5 / 2019.

“The banks are however encouraged to gradually adopt machine processing and authentication of Rs. 50 banknote,” SBP added.

Earlier, the central bank extended the effective date for issuance of machine authenticated Rs. 50 banknotes to January 2, 2020. The SBP Currency Management Strategy was introduced in February 2015, to ensure smooth transition of the cash management function from manual to automated environment.