News

Pakistani banks to be fined for dispensing fake banknotes from ATMs

May 9, 2013

In order to force the country's commercial banks to modernize their currency handling equipment and procedures, the State Bank of Pakistan has announced that it will penalize any bank whose ATM dispenses a forged note. The bank will be fined Rs 10,000 ($101.57), plus the value of the note.

According to instructions circulated by the Pakistani Finance Department and published in the Business Recorder, further penalties will be imposed for recurring infractions. "[A]ny irregularity will attract additional penalty besides fine on routine violation. This additional fine will be Rs 10,000 per instance," the Finance Department warned.

The SBP has been working to clean up the nation's currency since early in 2004, according to the Business Recorder report. At that time, a Master Circular on Cash Management-Monitoring that required banks to remove soiled, cut and mutilated currency notes from circulation.

Special SBP teams staged surprise visits at banks to check the quality of notes being issued. Banks found in violation of the currency requirements were penalized.

Read more about regulatory issues.