KARACHI: State Bank of Pakistan (SBP), keeping inherent operational risks in processing, cancellation and issuance of payment in view, has issued guidelines to banks and micro-finance banks (MFBs) for strengthening internal controls in payment instruments.
As per the CPD circular, the SBP has decided that henceforth the banks/MFBs shall strictly observe the following controls, in addition to those already in place for the purpose.
Before processing the request for purchase of the Payment Instruments, the banks/MFBs shall ensure that the purchaser has properly narrated the name, Computerized National Identity Card Number/ Smart National Identity Card Number, National Tax Number (for corporate entities), complete address, and contact details of both the purchaser and the beneficiary in the Payment Instrument purchase form; and described the purpose for which the Payment Instrument is required.
Before issuance of Duplicate Payment Instrument, the banks/MFBs shall obtain from the purchaser; Police Daily Diary Report No./copy of the FIR regarding loss of the original Payment Instrument; affidavit on non judicial stamp paper to the effect that original Payment Instrument has been lost before its delivery to the intended beneficiary.
The banks/MFBs shall immediately mark the original Payment Instrument as “cancelled” in the system before issuance of duplicate Payment Instrument to the purchaser; specifically mark the subsequent Payment Instrument as “duplicate”.
The banks/MFBs shall prescribe limits on the amount of Payment Instrument that may be subjected to the following requirements for cancellation/ refund of Duplicate Payment Instrument: lawful discharge of the beneficiary for cancellation/ refund of the Duplicate Payment Instrument in favor of the purchaser; the purchaser’s undertaking as to the genuineness of the beneficiary’s discharge in the Payment Instrument cancellation/refund request.
The banks/MFBs shall devise a standardised Payment Instrument Verification Form; upon request from the beneficiary(ies), verify the genuineness of the Payment Instrument along with other related details.
