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Currency Management Unit & its functions
SBP (BSC) Dera Ismail Khan

Submitted To:
Mr. Mudasir Ahmad

Chief Manager Banking Service Corporation D.I.Khan

Submitted By:
Muhammad Taous (Qurtuba University)
Muhammad Umair Qureshi (Gomal University)
Sundas Tanveer (Qurtuba University)

Dated: 11 August 2017





My dear Parents, respected Teachers & all the

Bank officials for their support


A milestone of this nature could never have been possible to achieve without the
support of a galaxy of some truly loving persons. The events and the process leading to
the accomplishment of my objective have given me a realization in depth of immense
blessing of Allah.
Many people have contributed in the successful completion of this internship report. My
great appreciation goes to the whole team of SBP (BSC). They provided me with every
kind of help in the completion of this report. Let me also thank my teachers of Qurtuba
University of Science & information Technology for the knowledge they gave me and
their guidance in every field. I would also like to thanks to respected Supervisor for
his guidance. Last but not the least I would like to thank my parents who provided me
love, support, patience & good knowledge.

Executive Summary
A sound and stable financial system has a direct bearing on economic growth and
development of country. The State bank of Pakistan (SBP) being the regulator of
banking and financial system has always endeavored to ensure a sound and robust
financial sector capable of efficiently catering to the needs of the public and regulated
The document contain Internship report on the Currency Management unit Functions,
how the workload is divided in the Unit between the personnel. What are the functions
of the unit and how they are performed? The issue and exchange functions of the unit.
Receipts of soiled and defective notes their examination process and then the
cancellation of notes. The process for cancelled notes. Supply of fresh notes and coins
to the general public and maintaining the daily record of transactions at State Bank of
Pakistan BSC D.I.Khan.


Chapter # DESCRIPTION Page #

I INTRODUCTION................................................................................ 01
1.1 Historical Background................................................................. 02
1.2 Objectives 03
1.3 Vision Statement......................................................................... 03
1.4 Mission Statement....................................................................... 03
1.5 Functions of SBP......................................................................... 04
1.6 Introduction to SBP (BSC).......................................................... 05
II Departments........................................................................................... 08
2.1 Banking Department. 08
2.2 General Service Unit. 08
2.3 Staff Matter Unit 09
2.4 Internal Monitoring Unit... 09
2.5 Currency Management & Evaluation Department 09
2.6 Divisions Wise Distribution of BSC. 11
2.7 Organogram of DIK SBP (BSC) 12

III Project.......................................................................... 13
3.1 Currency Management Department (CMD).. 13
3.2 Functions of CMD. 14
3.3 Divisions of Currency Management Unit (CMU)... 15
3.4 Major functions perform by CMU 17
IV SWOT Analysis 22
4.1 Strengths... 22
4.2 Weaknesses.. 23
4.3 Opportunities 24
4.4 Threats.. 25
4.5 Recommendations.... 26
Bibliography... 27


The State Bank of Pakistan (SBP) is incorporated under the State Bank of Pakistan
Act, 1956, which gives the Bank the authority to function as the central bank of the
country. The SBP Act mandates the Bank to regulate the monetary and credit system
of Pakistan and to foster its growth in the best national interest with a view to
securing monetary stability and fuller utilization of the countrys productive

Subsidiaries of the SBP

The SBP holds two fully owned subsidiaries to augment its functions. These are:

State Bank of Pakistan Banking Service Corporation SBP (BSC)

Established under the SBP-BSC Ordinance 2001, SBP-BSC supports SBP in

performing functions such as handling of currency and credit management,
facilitating the inter-bank settlement system, and sale/purchase of savings
instruments of the Government on behalf of Central Directorate of National Savings.
SBP-BSC also collects revenue and makes payments for and on behalf of the
Government. It also carries out operational work relating to development finance,
management of public debt, foreign exchange operations and export refinance. The
Board of Directors of SBP-BSC, chaired by the Governor SBP, comprises of all
members of the Central Board of SBP and the Managing Director of SBP-BSC.
SBP-BSC consists of 16 field offices in Pakistan with the head office in Karachi.

National Institute of Banking and Finance

NIBAF is the training arm of SBP, providing executive development trainings to new
inductees and various levels of SBP employees. The subsidiary also conducts
international courses on central and commercial banking in collaboration with the
federal Government. Furthermore, NIBAF offers training to SBP-BSC and other
financial institutions. NIBAF is incorporated under Companies Ordinance, 1984 and
has a separate Board of Directors.
NIBAF is located in Islamabad with an office in Karachi.


Before independence on 14 August 1947, during British colonial regime the Reserve
Bank of India was the central bank for both India and Pakistan. On the 30th of
December 1948 the British Government's commission distributed the Reserve Bank
of India's reserves between Pakistan and India -30 percent (750 M gold) for Pakistan
and 70 percent for India.

The losses incurred in the transition to independence, small amount taken from
Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah
(Founder of Pakistan) took steps to establish the State Bank of Pakistan
immediately. These were implemented in June 1948, and the State Bank of Pakistan
commenced operation on July 1, 1948

Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was
charged with the duty to "regulate the issue of bank notes and keeping of reserves
with a view to securing monetary stability in Pakistan and generally to operate the
currency and credit system of the country to its advantage".

A large section of the state bank's duties were widened when the State Bank of
Pakistan Act 1956 was introduced. It required the state bank to "regulate the
monetary and credit system of Pakistan and to foster its growth in the best national
interest with a view to securing monetary stability and fuller utilization of the
countrys productive resources". In February 1994, the State Bank was given full
autonomy, during the financial sector reforms.

The State Bank of Pakistan also performs both the traditional and developmental
functions to achieve macroeconomic goals. The traditional functions may be
classified into two groups:

1) The primary functions including issue of notes, regulation and supervision of the
financial system, bankers bank, lender of the last resort, banker to Government, and
conduct of monetary policy.

2) The secondary functions including the agency functions like management of
public debt, management of foreign exchange, etc., and other functions like advising
the government on policy matters and maintaining close relationships with
international financial institutions.

1.2 Objectives
The state bank of Pakistan is a nonprofit organization. Its main objective is to
manage or maintain the currency supply in country. Increase and decrease in money
supply can create inflation or deflation in country, so these things should be handled
immediately and state bank is doing this.


To transform SBP into a modern and dynamic central bank, Highly professional and
efficient, fully equipped Bank to play a meaningful role, on sustainable basis, in the
economic and social development of Pakistan.


To promote monetary and financial stability and foster a sound and dynamic
financial system, so as to achieve sustained and equitable economic growth and
prosperity in Pakistan.

1.5 Functions of SBP

Like a Central Bank in any developing country, State Bank of Pakistan performs
both the traditional and developmental functions to achieve macro-economic goals.
The traditional functions, which are generally performed by central banks almost all
over the world, may be classified into two groups: (a) the primary functions
including issue of notes, regulation and supervision of the financial system, bankers
bank, lender of the last resort, banker to Government, and conduct of monetary
policy, and (b) the secondary functions including the agency functions like
management of public debt, management of foreign exchange, etc., and other
functions like advising the government on policy matters and maintaining close
relationships with international financial institutions.

1.6 Introduction to Banking Services Corporation SBP (BSC)

As SBP felt that there is extra burden of workload to perform policy making
functions as well as operational functions the administration established he SBP
Banking Services Corporation (SBP-BSC) was established as a wholly owned
subsidiary of State Bank of Pakistan in January, 2002, under the SBP Banking
Services Corporation Ordinance 2001.

As an operational arm of the Central Bank, SBP Banking Services Corporation is

engaged in managing currency, foreign exchange operations and foreign exchange
adjudication; providing banking services to the federal and provincial governments
and financial institutions regulated by State Bank of Pakistan, conducting
development finance activities in support of the development finance group of the
SBP, implementing export refinance schemes, and performing agency functions
like sale/purchase of national prize bonds including managing prize money draws,
sale and purchase of national saving schemes or any other functions assigned by
State Bank of Pakistan.

Vision Mission

To develop SBP-BSC into a dynamic To provide excellent banking and

and efficient organization equipped financial services to stakeholders
with requisite technology and human besides ensuring implementation of
resource capable of extending SBP policies in order to command
sustainable support to the State Bank their trust and respect.
of Pakistan in achieving its objective.


Regional Offices

The sixteen (16) Field Offices of the Bank are structured into the following three

Regional / Field Offices of the Bank typically provide the following Banking

Currency Management Services (Issuance, Exchange & Destruction of

Currency Notes).
Coins Management (Supply & Receipt).
Receipts of Governments Taxes & Levies.
Management of Governments Payments (Salaries, Pensions & Suppliers).
Public Debt Management (Management of National Prize Bonds &
SSCs/DSCs Schemes on behalf of Central Directorate of National Savings
(CDNS), National Savings, Ministry of Finance, Government of Pakistan,
Provision of Governments Funds Transfer Facility.
Locker facilities to the Government for Safe Deposit of Articles.
Customers Facilitation for General Banking Complaints.
Other Banking Services as and when required by the Government

S. No. Regions Regional / Field Offices

North Nazimabad
1. Southern Region (5 Field Offices) Hyderabad
2. Central Region (6 Field Offices)
3. Northern Region (5 Field Offices) Peshawar
D.I. Khan

In addition, for proper and efficient management of the business relating to the issue
of notes / currency, there exist four Currency Issue Circle Offices of the Bank. The
location of these Offices and their geographical limits are as under:

Currency issue
Geographical limits of each circle
circle offices

1. Karachi Province of Sindh

Province of Punjab including Government of
2. Lahore
Azad Jammu and Kashmir
Province of Khyber Pakhtunkhwa and
3. Peshawar
Government of Gilgit- Baltistan
4. Quetta Province of Balochistan

Chapter#2 Departments

2.1 Banking Department:

Banking department further divided into two units:

a) Deposit Account Unit:

It deals with commercial banks
It directs the working criteria of commercial banks
All main branches of the commercial banks of the city have an account in
Bank accounts maintenance
Transfer of funds
Closing of bank daily operations.

b) Public Account Unit:

Dealing in Govt accounts
Collection of tax.
Payment of salaries to employees of the Govt
Dealing with the receipts and & payment of Govt sectors
Govt accounts maintenance & transferring of funds on transaction
Daily closing of accounts at DAU with the record of PAU

Payment and receipt at PAU:

1. Through Cash
2. Through transfer
3. Through clearing

2.2 General Services Unit (GSU)

Makes and forecast a broad plan keeping in view the whole budged of
concerned office of SBP BSC
Management of resources / Suppliers.

Budget and expenditure monitoring
Maintenance of Fixed assets
Procurement of the assets of the office and maintain their record
Repair and maintenance of office building and equipments

2.3 Staff Matter Unit (SMU)

Dealing with the cases of transfer & posting
Deals with disciplinary matters
Maintaining record of Staff promotions based on Points Based System
Retired, dismissed, resigned and transferred employees information/record
Leave record is also maintained here
Payment of salary, pension and increment record
Medical section is also being looked after by SMU

2.4 Internal Monitoring Unit (IMU)

IMU is responsible to check and authorize all the work to make it flawless
To check the daily record of work done by PAU & DAU
To check the enter and exit time of all the employees
To check the work done by SMU
To check the medical facilities and procurement of assets
To check and authorize the work done by GSU
To assist regional Hub Audit and Annual Audit.

2.5 Currency Management and Cash Monitoring & Examination Department


To process currency Claim Cases

Issue and distribution of fresh notes and coins
Withdrawal of soiled notes from circulation and their destruction
Note exchange facilities and anti-counterfeit measures
Facilitate to General Public to know about the Forge Note

Implementation of Clean Note Policy and other currency related policies.
Conducting onsite monitoring of commercial banks and currency chests.
Issuing instructions to commercial banks regarding currency related matters
as issued by SBP or SBP (BSC).

2.6 Divisions Wise Distribution of BSC

Sr. Name of Division Functions Headed By

A Issue & Treasury Payments and Receipts on behalf of Government DCM(Cash)
Issuance and exchange of Currency Notes
(Cash) Division Issuance of Commemorative Coins and other coins
Sale and Encashment of Prize Bonds

B Banking Division Receipts and Payments on behalf of Government DCM

Maintaining Current Accounts of Banks
Management of Income & Expenditure
Preparation of Trial Balance, Profit & Loss Account,
Balance Sheet
Reconciliation of Accounts
Opening of L/Cs on behalf of Govt Departments
C Prize Bonds Payment of Prize Money DCM
/Securities Maintenance of record of Prize Bonds in circulation
Division Sale & Encashment of SSC and DSC
Payment of Profit
D AFU Monitoring and implementation of SBP DCM
financing schemes
Target monitoring of agricultural financing

E Administration Management of HR Resources DCM

Division Digital maintenance of employees data in
HRMS EIM and Leave Modules
Internal Bank Security
Procurement of new equipments
Floating tenders for new projects
Repair and Maintenance of office buildings and

2.7 Organogram of DIK SBP (BSC)

Chapter#3 Project

3.1 Currency Management Department

Objective of the Study

To learn how the Currency is managed by our Central Bank (SBP)?
What steps have been taken by the Currency management department to
ensure the clean note policy in the country?
How Currency management unit facilitate the Chest branches of NBP?
How to balance the Export and Import of currency?
Core functions of Currency Management Unit.
Division of Currency management unit.

Mission Statement
To establish efficient currency management system by using latest technology from
initial printing to finally destruction of banknotes including curbing of counterfeit

Vision Statement

Providing securer and better quality banknotes to command respect and trust of our

Banking Services Corporation as an operational arm is supposed to execute

currency operations and its management throughout the country.

Since inception of BSC, Currency Division was working as a functionary of

Accounts Department

Due to increase in Currency in Circulation (CIC) & allied work, a strong need was
arises to separate the policy and strategic arm of currency in to a separate

To streamline currency management activities in an efficient and effective manner
across the country. The functions relating to currency management previously dealt
with by Accounts Department of the SBP-BSC was transferred to a newly created
Currency Management Department (CMD) which is fully functional since 7th
August 2007.

Legal framework
In terms of Para 5 b & c of Part II of Banking Services Corporation Ordinance, 2001,
the BSC may transact and carry on all or any of the following functions namely: -
b. The handling of receipt, supply and exchange of bank notes and coins which are
legal tender;
c. The issue, supply, sale, encashment and handling of prize bonds, holding draws
thereof and other savings instruments of the Federal Government of or a Provincial

3.2 Functions of Currency Management Department:

Overseeing Currency Operations viz: Supply, Distribution, Withdrawal,

Verification and Cancellation of Notes and coins in accordance with treasury rules
and other applicable laws

Preparing annual notes and coins indent and managing demonetization.

Coordinating with different stakeholders to ensure that different books of accounts

regarding currency management are properly maintained including
development/modification/improvements in the system based reports in
coordination with ISTD.

Promoting Clean Note Policy.

Controlling Counterfeiting: Coordinating and Liasoning with different

stakeholders, capacity building/ mentoring BSC field offices staff and promoting
mass awareness activities.

Monitoring of Chest balances.

Overseeing and coordinating onsite examination of cash balances at commercial

banks and ensuring its compliance to various instructions issued in this regard
under our clean note policy

3.3 Divisions of Currency Management Unit



Overseeing Currency Operations viz: Supply, Distribution, Withdrawal,

Verification and Cancellation of Notes and coins in accordance with treasury rules
and other applicable laws

Preparation of annual indents for notes and coins keeping in view past consumption
trends and future requirements.

Ensuring accurate booking/ reporting of various cash management statements and

taking corrective measures on timely basis if required.

Effective monitoring of chest balances and taking corrective measures for

breaching holding capacity limit or non compliance to other instructions.

Handling of Public Complaints regarding Currency Notes and taking necessary

action as per requirement.

Liasoning with NBP for issues relating NBP chest operations like
Linking/delinking, change in holding capacity, periodic examination etc.


Cash Monitoring On-Site Examination of Banks under SBP Clean Note Policy

Annual Verification of balances of Banknotes, Coins and Prize Bonds held with
SBP BSC Offices

NBP Chest Inspection, Monitoring and Supervision

Training Coordination, Handling of Public Complaints etc.


Assessing the need of opening of new field offices on request from Federal /
Provincial Government.

Procurement of plots for rented field offices. Currently held in abeyance on the
orders of Board.

Coordinating with ISTD for development of various MIS reports for BSC head
office and Issue circles / field offices.

Need assessment/ evaluation of various counterfeiting detection equipment and

recommending their procurement for HOK and field offices.

Preparation of Currency Newsletter


Implementation of Finance Division/CDNS Notification/SROs regarding National

Prize Bonds (NPB) and National Saving Schemes (NSS).

Liaison with CDNS/Ministry of Finance with regard to Policy/ Procedure of

National Prize Bonds/NSS.

To facilitate the offices of SBP BSC, commercial Banks and General Public
regarding queries/issues raised in respect of Sales/Encashment/Re-investment of
National Prize Bonds, NSS and other allied issues.

To arrange 28 draws of NPB as per Annual Schedule issued by CDNS, Islamabad.

3.4 Major Functions of Currency Management Unit

Divisional Structure of Currency Management Unit

Currency Management Units at field offices perform their functions under the
instructions of Currency Management Department at HOK.
The main functions of Currency Management unit are elaborated as its different
sections as under:-

1. Remittance Management
Overseeing the Currency Operations viz: Supply, Distribution, Withdrawal,
Verification and Cancellation of Notes and coins in accordance with treasury rules
and other applicable law.

Preparing indent for supply of notes and coins to the office and Managing
Inward remittances from issue /supplying office in timely manner.

Ensuring and managing collection of soiled notes from commercial banks and
arranging for outward remittances to other office for shredding of cancelled / soiled

Ensuring accurate booking / reporting of various cash management statements i.e

currency chest slips and other reports on daily basis etc and taking corrective
measures on timely basis if required.

2. Chest Operations & Issuance of fresh Currency.

Effective monitoring of chest balances and taking corrective measures for
breaching holding capacity limit or non compliance to other instructions.

Liasoning with NBP for issues relating NBP chest operations like, change in
holding capacity, periodic examination etc.

Redressal of Problems/queries faced/raised by Commercial Banks in respect of

issuance of fresh currency notes.

Overseeing, Coordination, Reviewing, Suggesting remedial actions regarding

commercial banks Cash Monitoring / Onsite Examination and annual verification
of different balances.

3. Processing Currency Claims and Forged Notes Cases

To receive the claims cases for cut / soiled / mutilated / washed / oily /colored /
burnt currency notes from claimants and process the same for authorization by
Deputy Chief Manager / Chief Manager.

Arranging payment of the one window and next day operations cases duly passed
by competent authority and handling appeal cases for the same.

To process the rejected notes for destruction after completion of the prescribed
ii -To receive forged notes from Police authorities and processing the cases,
iii -To prepare cases for court attendance & prepare and process the cases for
destruction of forged notes & to keep the record of the unit updated.

Maintain updated information in system regarding various modes of forgeries

detected in counterfeit notes/ coins in circulation & provision thereof to CMD
Capacity building trainings/ monitoring/ mentoring of officials of commercial
banks and relevant law enforcement department on counterfeit related matters and
clean note policy of SBP.

Promoting mass awareness activities among general public about, forged notes,
security features of currency notes and clean note policy of SBP.

4. Onsite Monitoring of Commercial Banks & NBP Chest

Preparation of annual On Site Examination Plan & Inspection of NBP Chest/ Sub-
Conducting on site examination of commercials banks & Inspection of NBP Chest
/ Sub-Chest branches, preparation of penalty sheets & submission of cash
monitoring examination reports to HOK and concerned banks.

Recovery of penalties, letters to concerned banks regarding observations, and

penalties imposed, timely and efficiently to ensure clean notes policy of SBP.

To issue instructions, make correspondence & arrange meetings with commercial

banks regarding various currency related issues like issuance of fresh currency
notes, inclusion of branches for fresh notes quota and other instructions received
from HOK time to time.


Currency management unit SBP BSC D.I.Khan provide remittance facilities to below
mentioned NBP Chest branches and also conduct examination of these chests :

NBP Lakki Marwat Chest

NBP Kulachi Chest
NBP Tank Chest
NBP Dera Ismail Khan Chest.
NBP Kallur Kot (for monitoring purpose only)

From these chest branches the currency is further circulated in the region where NBP
is working as a chest of SBP.

Further SBP BSC D.I Khan conducts onsite monitoring of commercial banks in
following Districts as per annual approved monitoring plan:

Distt D.I Khan

Distt Tank
Distt Lakki Marwat
Distt Bhakkar

Chapter 4 .SWOT Analysis of SBP

SWOT analysis stands for strengths, weakness, opportunities, and threats. SWOT
analysis is careful evaluation of an organizations internal strengths and weakness as
well as its external environmental opportunities and threats.
The overall evaluation of an organizations strengths, weaknesses, opportunities and
threats is called SWOT analysis.
In SWOT analysis the best strategies accomplish an organizations mission by:
1. Exploiting an organizations opportunities and strength.
2. Neutralizing the threats.
3. Avoiding or correcting its weakness.
SWOT analysis is one of the most important steps in formulating strategy using the
organization mission as a context, managers assess internal strengths distinctive
competencies and weakness and external opportunities and threats. The goal is to
then develop good strategies, exploiting opportunities & strengths, neutralizing
threats and avoid weaknesses.

4.1 Strengths

+4.1.1 Reserve custodian

SBP is privileged to hold the reserves of the whole economy no other bank is
authorized to hold the reserves except they can deal in reserves but the ultimate
holder is SBP. It is also responsible to manage and control the exchange rate in the

4.1.2 Employee Benefit

The employers at SBP are offered reasonable monetary benefit. Normally bonuses
are given. Employees also enjoy the interest free loans free medical care of family

and insurance of life. These serve as a benefit and competency for the bank and a
source of motivation for the employees.

4.1.3 Broad Network

The bank has another competency i.e. it has two subsidiaries one is the NIBAF and
second one is the SBP-Banking Services Corporation. SBP has more than 30
departments that are performing their own separate functions.

4.1.4 Strictly follows Rules & Regulations

The employees at SBP are strict followers of rule & regulation imposed by bank. The
disciplined environment at SBP bolsters its image and also enhances the overall
output of the organization.

4.1.5 Premier Institution

SBP in one of the premier bank of Pakistan that is responsible for regulation of
banking and monetary system of Pakistan since its inception. It provides some
guidelines time to time for proper working of financial and monetary system in

4.1.6 Agent to Government

The SBP performs additional services for government by providing loans and
managing the government accounts as well as the other banks.

4.1.7 Online Network

The bank has the strength of being powered by the network of computers, which
have saved time, energy and would have lessened the mental stress, the employees
have. This would add to the strength that is powered by network of computers.

4.2 Weakness

4.2.1 Uneven Work Distribution

There seems uneven distribution of workload in SBP with some employees over
loaded with work while some employees while others abscond away from their

responsibilities, which serves as a demotivation factor for employees performing
above average work.

4.2.2 Political Pressure.

The strong political hold of some parties and government and their dominance is
affecting the bank in a negative way. They sometime have to provide loan under the
pressure, which leads to uneven and adjusted feeling in the bank employees and
harms autonomous status of the institution.

4.2.3 Lacking of Computerized System.

There are some ways which has been working as old as it was working 20 years ago
so it is important to establish a new technological system e.g vault system and
sealing system.

4.3 Opportunities

4.3.1 Micro Financing at (D.I.Khan level)

Because of the need for micro financing in the market, there are lot of opportunities
in this regard. Now the time has arrived when the SBP must realize it and take on
step to cater an ongoing demand and the Micro finance Dept should device policies
to strengthen the micro finance network with the cooperation of Commercial banks..

4.3.3 Advancement of IT and latest technology

The bank must adopt advance technologies in order to facilitate the customers,
employees and also to achieve its goals effectively and efficiently.

4.3.4 Increase economic activities

Bank establishes strategies which increase economic activities like production
distribution and consumption of product and services.

4.3.5 Growing banking system
Banking is very important now a day due to increase in domestic and international
business worldwide and every businessman keep proper contact with banks. So the
banks can take this opportunity to attract different business by providing attractive
benefits, so in this regard State Bank can motivate different Commercial banks to
increase their banking system.

4.3.6 Enhancement of skills

Training and development of the work force repaired the employees to be well
equipped and perform their designated task in the best manner and resulted in the
achievement of organizational objectives. Well designed training and development
programs ensure the up gradation of employees capabilities and other associated
achievement for personal goals.

5.4 Threats

4.4.1 Implementation of rules and regulations

It is one of the major threats for state bank to implement policies in its true across
commercial banks. Commercial banks again have to change their policies and adopt
the implemented rules and regulations at operational level.

4.4.2 Excessive government borrowings

As a developing nation Pakistan is borrowing too much from internal and
international banks and funding agencies. These agencies impose numerous
restrictions against the extension of those loans.

4.4.3 Circulation of fake currency

Fake currency is also the problem for State bank. Bank should have thoroughly
checked the every single note; if they did any mistake then it can be the huge loss for
the bank.

4.4.4 Whole structure change to online

Changing the whole structure to online is threat for the bank because many
customers are unaware to use internet so due to which bank can face many problems

as well as customers also face the problems and also cyber crime in todays world is
a big problem.

4.5 Recommendations

Enhanced efforts should be made for Public awareness about the clean note
policy, security features of bank notes.
Black marketing of notes should be fully discouraged in order to avoid it
strict policies should be implemented.
Further efficiency in Remittance Management may be achieved through rapid
transport service with more secured arrangements.
Proper staff backup should be provided to every unit in case of their absence,
rotation or transfer. So the other employees can perform effectively at their
Increase the staff strength of IMU State Bank Pakistan (BSC) D.I.Khan
department to decrease the chance of errors.
Staff strength should be enhanced and professionally qualified persons of
only relevant field should be recruited.

In my opinion there should be latest technology regarding the vault

management and sealing of boxes (e.g. Double lock box)
Better infrastructure i.e. more spacious seating arrangements and dedicated
rooms for each unit may be established.
The bank has to accommodate its own building to perform the banks
operations more efficiently, and the most important new building must be
accommodated outside the area of Army Cant so customer can easily enter
into the Bank without any hurdles.


Siddiqui, A. H. (2012). Banking Law & Practice in Pakistan (3rd