The State Bank of Pakistan has warned the Commercial Banks to maintain standard of cheque books, and do not use sub-standard material for printing the cheque books. Penalties would be imposed on the banks violating the standards and instructions given by SBP related to the above subject matter.
The Central Bank in this regard, has already sent letters to the Chief Executives and Presidents of the scheduled banks, as some the banks are not following the instructions in letter and spirit.
Earlier, the State Bank has already issued instructions in Jun 11, in response to the complaints lodged for the sub-standard paper used for printing cheque books and security stationery. As these are not printed according to the instructions given and there is a greater chance of its use in fraudulent activities.
In order to safe guard the interest of the depositors and public, at large SBP has instructed that in order to avoid spurious cheques printed on unauthorized paper, the cheque books should be printed on CBS-1 paper. The CBS-1 paper should follow the International standard and security specification for protection against the fraudulent attacks on vulnerable parts of the cheques having chemical sensitivity to specific chemical mentioned in the notification given in 2003.
The SBP also instructed that paper of the cheque books before printing cheque books and security stationery, if printed by other licensed printing companies beside Pakistan security printing press, should be tested by PSPC.
The banks are also advised to file a certificate each year to the SBP for confirmation of the standardized paper usage for printing cheque books and other security stationery within 15 days from the close of financial year. SBP also warned banks that banks not complying with the instructions given would be penalized under relevant provisions of the Banking Companies Ordinance 1962.