Higher denomination banknotes: new security features to be added

In order to avoid counterfeiting, higher denomination banknotes with enhanced security features will be issued in the first quarter of 2017. The designs of the higher denomination banknotes, ie, Rs 500, Rs 1,000 and Rs 5,000 will remain unchanged; however some additional security features will be added to the higher denomination banknotes to further reduce counterfeiting risk.
As the higher denomination banknotes are more attractive for counterfeiters, it has been decided to enhance security features of Rs 500 Rs 1,000 and Rs 5,000 denomination banknotes.
According to State Bank of Pakistan's annual performance review, in order to further strengthen the security features of higher denomination banknotes (Rs 500 and above) a joint committee of the SBP, Pakistan Security Printing Corporation, Security Papers Limited and SICPA Inks Pakistan has recommended addition of some advanced Level-I and Level-II security features in the higher denomination banknotes.
The proposal of joint committee, earlier, were presented to the State Bank's board and after approval by SBP Board, these proposals were also approved by the Cabinet.
As the proposal has been approved by the SBP board and the Cabinet, the higher denomination banknotes with enhanced security features will be issued by the end of first quarter of CY2017.
Sources said printing of higher denomination banknotes with enhanced security features will start in February 2017 and issued to the general public in March 2017.
The State Bank has already issued a new design banknote series which started with the issuance of Rs 20 denomination banknote in 2005 to improve the security, durability and aesthetic quality of banknotes and the process of issuance of complete series of new-design banknotes comprising eight denominations (Rs 5, 10, 20, 50, 100, 500, 1000 and 5000) was completed in 2008.
In addition, in order to reform and transform the currency management function both in the banking industry and the Central Bank, a detailed currency management strategy to ensure adequate supply of good quality banknotes across the country.
In the first phase starting January 2017, the requirement of issuance of machine authenticated banknotes would be applicable on higher denomination banknotes Rs 500 and above, in 30 big cities; whereas in the second phase starting January 2018, all denomination banknotes will be issued by banks from their branches and ATMs across the country shall be machine authenticated.
The implementation of the strategy is well on track as almost all the banks except a few public sector banks have got their machines tested and certified by the SBP and were at advanced stage of installation of cash processing machines in their Currency Processing Centers (CPCs) or branches in 30 big cities.
The banks not installing their own machines by the given deadline will have to make arrangements with other banks/CPCs to get their cash processed to disburse machine processed cash to their clients. Thus from January 2017, a new era of cash processing would start bringing Pakistan at par with regional and international best practices in currency management.