The State Bank of Pakistan (SBP) has issued guidelines to banks and micro-finance banks for strengthening internal controls in payment instruments.
SBP has issued these guidelines in view of the inherent operational risks in processing, cancellation and issuance of payment order, demand draft, cash deposit receipt or banker’s cheque (collectively referred as the payment instruments), said a SBP release yesterday
According to the Consumer Protection Department circular letter, “before processing the request for purchase of the payment instruments, the banks shall ensure that the purchaser has properly narrated the name, computerised national identity card number, national tax number and complete address”.
In addition, contact details of both the purchaser and the beneficiary in the payment instrument purchase form as well as the description of the purpose for which the payment instrument is required will be narrated.