SBP issues guidelines to strengthen controls in payment instruments

karachi
In view of inherent operational risks in processing, cancellation and issuance of payment, it has been 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.

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