Cash Handling FE

FOREIGN EXCHANGE
CASH HANDLING
Branch Operations & Account Services

FE Cash Handling
APPROVAL SHEET
Document Ownership: Branch Operations & Account Services
Document Version: 3.0
Implementation Responsibility: Branch Operations & Account Services
Custodian: Branch Operations & Account Services
Operating Jurisdiction: HBL Pakistan
Review Frequency: 3 years or earlier if required
Review Responsibility: Branch Operations & Account Services
Last Approved: 2018
Approval Date:
Effective Date:
Next Review Date: 2024
Prepared by/ Reviewed by (Document Owner)
____________________
Ali Haider Gardezi
Head – Branch Operations Support & Governance
Stakeholder’s Review
Reviewed by
_________________
Ikramullah Khan
Head – Advisory & Policy Management –
Global Compliance
Concurred by
____________________ ____________________
Fouzia Jabeen Janjua Sagheer Mufti
Head – Branch Operations & Account Services Chief Operating Officer
Recommended By Approved By
___________________ ___________________
Muhammad Aurangzeb Board of Directors
President & CEO
Operations Manual
Version 3.0 – December 2021 FE Cash Handling
TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................................. 1-1

1.1 Objective ........................................................................................................................................................ 1-1
1.2 SCOPE ............................................................................................................................................................ 1-1
The Bank to engage in Transactions within the Scope of its Authorization ................................................................... 1-1
Purchase from other Banks and Exchange Companies ................................................................................................. 1-1
Foreign Currency Notes .............................................................................................................................................. 1-1
2. PERSONNEL INVOLVED IN CASH HANDLING - BRANCH .............................................................. 2-1

2.1 Responsibilities of Junior Supervisor/ Manager Teller Service (MTS) ................................................................ 2-1
2.2 Responsibilities of Branch Operations Manager (BOM) .................................................................................... 2-1
2.3 Responsibilities of Teller ................................................................................................................................. 2-1
3. START OF DAY PROCEDURES .............................................................................................. 3-1

3.1 Introduction ................................................................................................................................................... 3-1
3.2 Withdrawing Cash from Cash Safe .................................................................................................................. 3-2
3.3 Transfer of Cash to Tellers at Start of Day ....................................................................................................... 3-3
3.4 Opening of Cash Counters .............................................................................................................................. 3-3
4. CASH RECEIPTS AND PAYMENTS- OVERVIEW .......................................................................... 4-1

5. Data Capturing of HBL Account Holder / Walk-In Customer ........................................................ 5-1
6. Creation and Updation of CIF Light – Walk In Customers ........................................................... 6-1
7. CASH RECEIPTS ............................................................................................................... 7-1
7.1 Modes of Cash Receipt ................................................................................................................................... 7-1
7.2 Scrutiny of Deposit Slip ................................................................................................................................... 7-1
7.3 Cash Counting ................................................................................................................................................7-2
7.4 Counterfeit/ Forged Notes Detection ..............................................................................................................7-2
7.5 Posting of Entry in the ETS ..............................................................................................................................7-2
7.6 Affixing of Stamp ............................................................................................................................................ 7-3
8. CASH PAYMENTS............................................................................................................. 8-1

8.1 Modes of Cash Payment ................................................................................................................................. 8-1
8.2 Scrutiny of the Cheque ................................................................................................................................... 8-1
8.3 Honoring Cheques- Important Precautions ..................................................................................................... 8-2
8.4 Instructions given by SBP for Fraudulent Cheques .......................................................................................... 8-3
8.5 Posting of Cheque in the ETS .......................................................................................................................... 8-3
8.6 Dishonoring of Cheque .................................................................................................................................. 8-4
8.7 Posting of Entry in the Equation Teller System (ETS) ....................................................................................... 8-4
8.8 Cash Payment ................................................................................................................................................ 8-5
9. CASH TRANSFER DURING THE DAY ....................................................................................... 9-1

9.1 Transfer of Excess Cash to Main Vault ............................................................................................................. 9-1
9.2 Cash Replenishment during Banking Hours ...................................................................................................... 9-1
i
Operations Manual
9.3 During the day Cash Transfers to and from Vault Especially When Limit is Breached ........................................ 9-1
10. Sale to PUBLIC (SALE OF FCY) ............................................................................................ 10-1

10.1 Scrutiny of Passport and Visa ........................................................................................................................ 10-1
10.2 Cash Counting and Scrutiny ........................................................................................................................... 10-1
10.3 Counterfeit/ Forged Notes Detection ............................................................................................................ 10-1
10.4 Posting of Entry in the System .......................................................................................................................10-2
10.5 Handing Over FCY to Customer .....................................................................................................................10-2
11. TRANSACTIONS WITH PUBLIC (PURCHASE OF FCY) .................................................................. 11-1

11.1 Purchase from Public – (For Branches Only) ................................................................................................... 11-1
11.2 Scrutiny of Passport and Visa ......................................................................................................................... 11-1
11.3 Cash Counting and Scrutiny ............................................................................................................................ 11-1
11.4 Counterfeit/ Forged Notes Detection ............................................................................................................. 11-1
11.5 Posting of Entry in the System ........................................................................................................................ 11-1
11.6 Handing Over PKR to Customer ..................................................................................................................... 11-2
12. FEEDING OF FOREIGN CURRENCY TO BRANCHES ................................................................... 12-1

12.1 Foreign Currency Requisition from Branches ................................................................................................. 12-1
12.2 Maintenance of Record................................................................................................................................. 12-1
12.3 Checking the Availability of Foreign Currency ................................................................................................ 12-1
12.4 Preparation of Shipment Receipt .................................................................................................................. 12-1
12.5 Posting of Entry in the System ....................................................................................................................... 12-2
12.6 Receipt of Cash at Branch ............................................................................................................................. 12-2
13. RECEIPT OF FORIGN CURRENCY FROM BRANCHES ................................................................. 13-1

13.1 Request from Branch .................................................................................................................................... 13-1
13.4 Receipt of Cash by FEC .................................................................................................................................. 13-2
14. ACQUISITION OF FOREIGN CURRENCY FROM OTHER BRANCHES ............................................... 14-1

14.4 Receipt of Cash at Requesting Branch ........................................................................................................... 14-2
15. ACQUSIITON OF FOREIGN CURRENCY FROM OTHER BANKS ..................................................... 15-1

15.1 Purchase from other Banks and Exchange Companies ................................................................................... 15-1
15.2 Banks’ Requirements of Foreign Currency Notes ........................................................................................... 15-1
15.4 Letter to Treasury ......................................................................................................................................... 15-1
ii
Operations Manual
15.5 Letter to Other Bank ..................................................................................................................................... 15-1

15.6 SWIFT Message ............................................................................................................................................ 15-1
15.8 Receipt of Cash from Other Bank .................................................................................................................. 15-2
16. WITHDRAWAL OF FOREIGN CURRENCY FROM STATE BANK OF PAKISTAN .................................... 16-1
16.1 Export of Surplus Cash Foreign Currencies by the Bank .................................................................................. 16-1
16.2 Foreign Currency Held at the Disposal of the State Bank ................................................................................ 16-1
16.3 Foreign Currency Inquiry from SBP ................................................................................................................ 16-1
16.4 Letter to Treasury ......................................................................................................................................... 16-1
16.5 SBP Letter..................................................................................................................................................... 16-1
16.6 SWIFT Message ............................................................................................................................................ 16-2
16.8 Receipt of Cash from State Bank of Pakistan .................................................................................................. 16-2
17. SELLING OF FOREIGN CURRENCY TO OTHER BANKS ................................................................. 17-1

17.1 Sale to other Banks ........................................................................................................................................17-1
17.2 Receipt of SWIFT Message and Delivery of Foreign Currency ..........................................................................17-1
17.3 Scrutiny of Documents ...................................................................................................................................17-1
17.4 Recording of Foreign Currency Requirement ..................................................................................................17-1
17.5 Handing Over of Foreign Currency..................................................................................................................17-1
18. EXPORT OF FOREIGN CURRENCY THROUGH HBL CURRENCY EXCHANGE ...................................... 18-1
18.1 Sale to other Banks ....................................................................................................................................... 18-1
18.2 Request to Export Foreign Currency to HBL Currency Exchange ..................................................................... 18-1
18.3 Scrutiny of Documents .................................................................................................................................. 18-1
18.4 Handing Over of Foreign Currency................................................................................................................. 18-1
19. DEPOSITING EXCESS FOREIGN CURRENCY TO STATE BANK OF PAKISTAN ..................................... 19-1
19.1 Export of Surplus Cash Foreign Currencies by the Bank .................................................................................. 19-1
19.2 Foreign Currency Held at the Disposal of SBP ................................................................................................ 19-1
19.3 Preparation of SBP Letter .............................................................................................................................. 19-1
19.5 Placing Foreign Currency in Shipment Bags.................................................................................................... 19-2
19.6 Delivery of Foreign Currency to SBP .............................................................................................................. 19-2
20. FEEDING OF FOREIGN CURRENCY TO FOREIGN EXCHANGE BRANCH ........................................... 20-1

20.1 Request from Branch ....................................................................................................................................20-1
20.2 Payment of Cash by FEC ................................................................................................................................20-1
20.3 Posting of Entry in the System .......................................................................................................................20-1
iii
Operations Manual
21. RECEIPT OF FOREIGN CURRENCY FROM FOREIGN EXCHANGE BRANCH ........................................ 21-1
21.1 Request from Branch .................................................................................................................................... 21-1
21.2 Transfer of Cash by Branch ........................................................................................................................... 21-1
21.4 Receipt of Cash by FEC .................................................................................................................................. 21-1
22. REPORTING OF STATE BANK OF PAKISTAN ........................................................................... 22-1

22.1 Maintenance of Record................................................................................................................................. 22-1
22.2 Submission of Returns to State Bank ............................................................................................................. 22-1
22.3 Monthly Return Submitted to SBP ................................................................................................................. 22-1
23. END OF DAY PROCEDURES ............................................................................................... 23-1

23.1 Journal Reconciliation Checklist (JRC) Review: Cash Balancing ........................................................................ 23-1
23.2 Safe Custody of Documents ......................................................................................................................... 23-2
23.3 Safe and Vault Closing.................................................................................................................................. 23-2
23.4 Recording of Excess Cash ............................................................................................................................. 23-2
23.5 Settlement of Excess Cash to CD/SB Miscellaneous Account ......................................................................... 23-3
23.6 Refund to Customers ................................................................................................................................... 23-3
23.7 Cash Shortage ............................................................................................................................................. 23-4
23.8 Excess Cash at Day End ................................................................................................................................ 23-5
23.9 Shortage Cash at Day End ............................................................................................................................ 23-5
24. SAFETY OF CASH – SECURITY CONSIDERATIONS AT THE BRANCH ............................................... 24-1

24.1 Restricted Access to Cash Area ...................................................................................................................... 24-1
24.2 Cash Counter Security ................................................................................................................................... 24-1
24.3 Minimum Cash at Counters ........................................................................................................................... 24-1
24.4 General Guidelines for Cash Safety................................................................................................................ 24-1
24.5 SBP Currency Management Strategy ............................................................................................................. 24-1
25. INSURANCE OF CASH ...................................................................................................... 25-1

26. CURRENCY NOTES MANAGEMENT ..................................................................................... 26-1
26.1 Soiled/ Defective/ Claim Notes...................................................................................................................... 26-1
26.2 Sorting of Currency Notes ............................................................................................................................. 26-1
27. SURPRISE CASH INSPECTION ............................................................................................ 27-1

28. CURRENCY TRANSACTION REPORT UNDER ANTI MONEY LAUNDERING ACT ................................. 28-1
28.1 Introduction ................................................................................................................................................. 28-1
28.2 Currency Transaction Report (CTR) ................................................................................................................ 28-1
29. ADDENDUM................................................................................................................. 29-1

29.1 General ........................................................................................................................................................ 29-1
29.2 Import of Pakistan Currency Notes ................................................................................................................ 29-1
29.3 Import of Foreign Currency Notes and Coins ................................................................................................. 29-1
iv
Operations Manual
29.4 Ban on sending Pakistan and Foreign Currency Notes or Coin by Post ............................................................ 29-1
29.5 Export of Pakistan Currency Notes ................................................................................................................ 29-1
29.6 Export of Currency on Steamers and Aircrafts ............................................................................................... 29-1
29.7 Prohibition to sell Pakistan Currency Notes Abroad ....................................................................................... 29-1
29.8 Ban on Export of Foreign Exchange Instruments and Pakistan and Foreign Currency Notes and Coin by Post . 29-2
29.9 Non-convertible Currency Notes .................................................................................................................. 29-2
29.10 Disposal of Surplus Notes ............................................................................................................................. 29-2
30. ANNEXURES ................................................................................................................. 30-1

ANNEXURE A ........................................................................................................................ 30-1
Vault Register ..........................................................................................................................................................30-1
ANNEXURE B ....................................................................................................................... 30-2

Cash Register .......................................................................................................................................................... 30-2
ANNEXURE C ....................................................................................................................... 30-3

Cash Transfer/ Distribution Slip ............................................................................................................................... 30-3
ANNEXURE D ....................................................................................................................... 30-4

Deposit Slip 30-4
ANNEXURE E ....................................................................................................................... 30-6

Cheque Return Memo ............................................................................................................................................. 30-6
ANNEXURE F ........................................................................................................................30-7
Chapter 17 of the FE Manual (Travel)....................................................................................................................... 30-7
ANNEXURE G ...................................................................................................................... 30-27

Proceeds Realization Certificate ............................................................................................................................ 30-27
ANNEXURE H ..................................................................................................................... 30-28

Shipment Receipt .................................................................................................................................................. 30-28
ANNEXURE I ...................................................................................................................... 30-32

Authority Letter for Collection of USD .................................................................................................................... 30-32
ANNEXURE J ...................................................................................................................... 30-33

Swift Message ....................................................................................................................................................... 30-33
ANNEXURE K ..................................................................................................................... 30-34

Cover Against Outward Remittance of USD ............................................................................................................ 30-34
ANNEXURE L...................................................................................................................... 30-35

Authority Letter for Delivery .................................................................................................................................. 30-35
ANNEXURE M .................................................................................................................... 30-36

Deposit of Foreign Currency Notes ........................................................................................................................ 30-36
ANNEXURE N ..................................................................................................................... 30-38

Memo for Transfer from FEC to FEB....................................................................................................................... 30-38
ANNEXURE O ..................................................................................................................... 30-39

Memo for Transfer from FEB to FEC....................................................................................................................... 30-39
v
Operations Manual
ANNEXURE P ..................................................................................................................... 30-40

STATEMENT S – 6 .................................................................................................................................................. 30-40
ANNEXURE Q ...................................................................................................................... 30-41

Cash Withdraw Customer (System Screen) .............................................................................................................30-41
ANNEXURE R ..................................................................................................................... 30-42

Record Retention Template ................................................................................................................................... 30-42
ANNEXURE S ..................................................................................................................... 30-43

Reference of Documents Used .............................................................................................................................. 30-43
ANNEXURE T ..................................................................................................................... 30-44

Amendment Recording Sheet ................................................................................................................................ 30-44
vi
Operations Manual
1. INTRODUCTION
1.1 Objective
1.1.1 The chapter 11 “Dealings in Foreign Currency, Notes and Coins” of the Foreign Exchange manual
2018 (FE Manual) sets out the rules and regulations in respect of the purchase and sale
transactions of the foreign currency carried out at the Bank. The chapter also highlights the key
dealings undertaken by the Bank with regards to foreign currency movement between its
branches and other banks.
1.1.2 The license granted to the Bank by SBP to deal in foreign exchange also includes an authority to
deal in foreign currency notes and coins.
1.1.3 Foreign Exchange Centers (FEC) are the centralized foreign currency cash houses established by
the Bank for fulfilling the foreign currency requirements of the Branches falling within their
Regions and other FECs. Branches are allowed to contact only these FECs in case of shortage or
surplus of foreign currency with them. In case the required amount of foreign currency is not
available with FEC, it is the responsibility of FEC to arrange the requisite amount of foreign
currency from other means available to it. These means include obtaining foreign currency from
other branches of the Bank, SBP and other banks.
1.1.4 FEC works in coordination with Global Treasury of the Bank as the foreign exchange dealing
desks have also been set up there. Transportation of foreign currency among branches, between
the Bank and SBP or between the Bank and other banks is carried out through an outsourced
Security Company.
1.2 SCOPE
The Bank to engage in Transactions within the Scope of its Authorization
1.2.1 As per Chapter 2, Paragraph 3 of the Foreign Exchange Manual 2018 (FE Manual) issued by SBP,
The Bank shall, in all its dealings in foreign exchange, comply with general or special instructions
which the State Bank may give from time to time and shall not engage in any transaction
involving foreign exchange which is not in conformity with the terms of its authorization.”
Purchase from other Banks and Exchange Companies
1.2.2 In accordance with paragraph 3 of chapter 11 "Dealings in Foreign Currency, Notes and Coins"
of FE Manual, the Bank also purchases foreign currency notes, coins and other instruments
freely from other banks via Nostro Accounts and Exchange Companies licensed by SBP.
Foreign Currency Notes
1.2.3 As per paragraph 11 chapter 22 “Returns of All FE Transactions”, the Bank does not include their
holdings of foreign currency notes in the balances reported on the "S-1" statement and omits
its transactions in currency notes completely unless such transactions result directly in entries
in its currency accounts.
1.2.4 On monthly basis, details of all transactions involving purchase or sale of foreign currency notes
and coins are reported to SBP on the prescribed Statement "S-6".
This document provides guidance and is exclusively for use by the staff members of HBL. Page 1-1
Any act of divulgence shall be viewed very seriously and shall warrant disciplinary/penal action.
Operations Manual
2. PERSONNEL INVOLVED IN CASH HANDLING - BRANCH
2.1 Responsibilities of Junior Supervisor/ Manager Teller Service (MTS)
2.1.1 MTS is In charge of the Tellers’ Operations area at the branch. He is responsible for the following
in relation to the Cash Handling function:
a. Custody of Cash maintained in the Vault, along with the other Key Holders.
b. Carrying out Cash from the Vault to Tellers’ Counter area.
c. Supervising daily Cash in and Cash out to/ from Vault.
d. Providing a responsible and accurate Cash Handling service experience to Customers by
maintaining and applying up to date knowledge of transactions, banking policies, practices
and procedures.
e. Arranging for a replacement in case of any Teller’s absence.
f. Setting smart goals for Tellers after discussion and monitoring their performance in line with
their set objectives.
g. Effectively managing counter’s cash requirements.
h. Promptly reporting of Cash Excess or Shortages to Operations Manager.
i. Resolving the identified differences in Daily Cash Positions.
j. Ensure that Counter Cash and Overall Cash on Premises Limit is not exceeded.
k. Ensure that Cash Holdings are kept within an optimum limit as per formula laid down by the
respective Regional Office.
2.2 Responsibilities of Branch Operations Manager (BOM)
2.2.1 BOM is held responsible for supervising Teller Operations at the branch. He is responsible for
the following in relation to the Cash Handling function:
a. Supervising Tellers Cash Balancing at end of day by reviewing the JRC and source documents.
b. Supervising Cash Deposit and withdrawal transactions which require a second level of
authorization.
c. Conducting Cash check at start of the day and end of the day.
2.3 Responsibilities of Teller
2.3.1 The term “Teller” means a person responsible for accepting Cash and Cheque Deposits and
paying Cash over the counter. The Teller directly deals with the Customers at the counter and
performs the following major activities in relation to Cash Handling function:
a. Receiving/ Depositing Cash from/ with MTS on a daily basis.

b. Safeguarding Cash at all times, by preventing unauthorized access to the Teller’s Area.
c. Processing all Customer transactions (Deposits and Withdrawals) of FCY and Bearer
Instruments.
d. Ensure accuracy and timeliness in all transactions.
e. Providing Customer friendly service within time standards set for each activity.
f. Detecting Fake Currency Notes if tendered and Sorting of Cash received at the counter into
Issuable and Non-Issuable Notes.
g. Placing Cash, Financial Papers, Source Documents, Validating Stamps, etc. in a Locked Cash
drawer whenever leaving his counter for short periods.
h. Transferring Excess Cash to the MTS prior to leaving the counter for a considerable time or
at end of day.
Operations Manual
i. Informing the MTS in advance about his absence and requesting him to arrange for a
replacement.
j. Promptly reporting Cash Excess or Shortage, to the MTS.
k. Reconciling the Daily Physical Cash with the Daily JRC.
l. Handling Customer Complaints or referring them to the appropriate areas for handling.
Operations Manual
3. START OF DAY PROCEDURES
3.1 Introduction
3.1.1 Cash on hand at the end of the preceding day is kept overnight in the Cash Safe placed inside
the Strong Room/Vault. Daily Cash Handling activity at the branch starts with the withdrawal of
Cash from the Cash Safe by the Key Custodians of the Strong Room/ Vault.
3.1.2 In order to access the Cash kept in the Cash Safe, Bank personnel need to pass through the
following Security Controls:
a. Digital Security System (where available)

b. Strong Room/ Vault Door
c. Grill Door (where available)
d. Cash Safe
a) Digital Security System
3.1.3 A Digital Security System (DSS) is installed outside the Strong Room/ Vault in the branches by
the Security Company. The Vault is only accessible when a code is entered into the DSS by MTS/
BOM. These codes have been provided by the Security Company to the authorized staff of the
branch. A backup code is provided to the Branch Manager (BM) which is to be used to open the
Vault door in case the primary code does not work or the MTS/BOM is not available.
b) Vault Door
3.1.4 There are three keys of the Vault, which are jointly held by Teller, Junior Supervisor / MTS and
BOM. The Vault is opened when all the keys are applied to the Vault door. The Vault In/Out
Register is kept outside the Vault which should be used to record the Time, Name and Signature
of the Person(s) accessing the Vault along with the purpose for which the Vault is being accessed
(Annexure A).
c) Grill Door
3.1.5 There are two keys of the Grill Door under the dual control of BOM and MTS.
d) Cash Safe
Note: In some of the branches, Cash Safe opens with three keys which remain under the custody
of the same Key Holders as mentioned above.
3.1.6 Security System of the vault is deactivated through password.
3.1.7 The Main Vault door has dual control and consists of 4 Keys which are in the custody of 2 persons
i.e. MTS and BOM.
3.1.8 Manual entry is made in the Vault Register (Annexure A) by the 3 persons who enter the vault
i.e. BOM, MTS and Teller.
3.1.9 The Grill door has dual control and consists of 2 Keys which are in the custody of 2 persons i.e.
BOM and MTS.
3.1.10 The safe consists of 4 keys of which 2 are in the custody of BOM, 1 with Teller and 1 with MTS.
3.1.11 Cash is withdrawn from the Vault and manual entry is made in the Cash Register (Annexure B)
at the Designated Branch.
Operations Manual
3.1.12 Entry is made in the Equation Teller System (ETS) for cash transfer from vault to cash counter by
MTS/ BOM who distributes the cash between the Tellers. Following entry is made:
GL Code Description Debit Credit

- Teller Till XXXX
- Cash on Hand XXXX
3.1.13 Safe is locked using 2 keys of different persons and the Vault door is also locked using 2 keys of
different persons.
3.1.14 A separate Cash Box is used for keeping the loose notes and coins. It opens with two keys which
are held by Teller and MTS/ BOM. The Cash box is carried out containing the daily cash
withdrawn from the vault to be distributed between the Tellers and should be placed inside the
Cash Safe along with the Cash packets /rings and stamps at the day end.
Two Men Branches
3.1.15 Security System of the vault is deactivated through password by BOM of the Branch.
3.1.16 The Main Vault door has dual control and consists of 4 Keys which are in the custody of 2 persons
i.e. BOM and BM.
3.1.17 Manual entry is made in the Vault Register by the 2 persons who enter the Vault i.e. BOM and
BM.
3.1.18 The Grill door has dual control and consists of 2 Keys which are in the custody of 2 persons i.e.
BOM and BM.
3.1.19 The safe consists of 4 keys of which 2 are in the custody of BOM and 2 are with BM.
3.1.20 Cash is withdrawn from the Vault and manual entry is made in the Cash Register by the BOM of
the Branch, a denomination wise register is also maintained by the Teller/ MTS to record the
flow of denominations to and from the Vault.
3.1.21 Entry is made in ETS for cash transfer from vault to cash counter by BOM.
3.1.22 Safe is locked using 2 keys of different persons and the vault door is also locked using 2 keys of
different persons, BOM & BM of the branch.
3.1.23 For details regarding the transfer of keys when the Key Custodians are on leaves refer Keys and
Vault Chapter.
3.2 Withdrawing Cash from Cash Safe
3.2.1 Required amount of Cash is withdrawn from the Cash Safe and placed into the Cash box. Cash
Safe and Vault Door are closed by the Key Holders and the Cash Box is carried to the counter by
MTS. Moreover, different stamps are withdrawn from the Safe including “Cash Received” and
“Cash Paid” stamps along with the Cash and the amount of Cash withdrawn from the Vault is
recorded in the Cash Register. Vault In/Out Register should be duly updated by the persons who
accessed the vault.
3.2.2 The specimen of Cash Register can be found in Annexure B:
3.2.3 MTS is the Custodian of the Cash Register.
Operations Manual
3.2.4 At start of day, the ATM Supervisor checks the Cash available in the ATM and if in case the
amount of Cash is less than the prescribed limit, additional Cash is fed in the ATM machine (For
detailed procedures, refer ATM Operations Chapter).
3.3 Transfer of Cash to Tellers at Start of Day
3.3.1 MTS/BOM has the responsibility to transfer the Cash, withdrawn from the Vault, to the Tellers
according to their assessed requirements based on expected level of the Cash Receipts and
Payments transactions for the day and to make a manual entry in the Cash Register.
3.3.2 Mandatory Cash Transfer between the Tellers and MTS takes place prior to and after the banking
hours. However, Cash Transfers may also take place as and when needed during the banking
hours in order to ensure that Tellers have sufficient Cash on Hand balance for Customer
dealings.
Note: Every time Cash is transferred between the Tellers and MTS; manual entry should be made
in the Cash Register.
3.3.3 Branches have ETS available with the feature to record the Cash Transfers. The amount of Cash
Withdrawn from the Vault is to be updated in the ETS by BOM or MTS/Junior Supervisor.
Subsequently, the Cash is transferred to the IDs of all Receiving Tellers along with the physical
Cash.
After each Cash Transfer, a slip (Annexure C) is generated from the ETS containing the following
particulars of the amount distributed amongst the Tellers. Each Teller/ BOM/ Junior Supervisor
has a unique ID to operate the ETS and generate the slip:
a. Date
b. Branch Name
c. Time
d. From Teller ID (Distributing Teller)
e. To Teller ID (Receiving Teller)
f. Currency
g. Amount Carried Forward
h. Teller ID (the Officer taking the print out)
3.4 Opening of Cash Counters
3.4.1 In order to meet customer service expectations, Cash counters at branch should be ready for
service at 9.00 am on daily basis. The BOM is primarily held responsible to run ‘USP’ option in
the ETS by 8.45 am every morning.
Before the commencement of Customer dealings, the Teller should ensure the following:
a. Be present at the Cash Counter at least 15 minutes before the start of Public Dealing;
b. Log on to his ETS;
c. Count the Cash received from the MTS and update the same in the ETS/ manual entry in
Cash Register; and
d. Update the Date in “Cash Received” and “Cash Paid” stamps.
Operations Manual
4. CASH RECEIPTS AND PAYMENTS- OVERVIEW
4.1 The Bank has adopted ‘One Window Operations’ mechanism for all the branches across the
Country. The said mechanism helps to ensure better service and speedy processing of the
Customer’s transactions by reducing the movement of Customer from one counter to another
as well as movement of instruments from one desk to another. To implement ‘One Window’
approach, concept of Multi-Functional Teller has been adopted in which a multitude of functions
are performed by the single Teller including:
a. Cash Deposit
b. Cash Withdrawal
c. Cheque Deposits
4.2 Q-Matic system has been installed in number of branches of the Bank which generates a Token
Slip for the Customers. Q-Matic system has a display screen and a loudspeaker. Customers are
served sequentially by the Tellers. As the transaction of one Customer is completed, Teller
presses the button and the number of the next token appears on the display screen as well as
the token number is called out through loudspeaker requesting the Customer to approach the
respective counter.
4.3 In branches without the Q-Matic system, the Customers have to make a queue for making Cash
Withdrawal/Deposit transactions at the Cash Counter.
4.4 Cash Withdrawal, Cash Deposit and Funds Transfer transactions are all posted in the system
through ‘YTS’ Option. The transactions are processed in batches which are automatically created
in the system. Furthermore, the ‘D’ (Delete) and ‘M’ (Maintain) options have been withdrawn
from the system. In case a transaction is wrongly posted the branch, users will post the reversal
with the following code:
▪ 595 for posting Credit

▪ 095 for posting Debit
4.5 Cash Deposits and Withdrawals from all Movement accounts (Current and Savings etc.) can only
be made through Foreign Exchange Dealing Branches.
Operations Manual
5. Data Capturing of HBL Account Holder / Walk-In Customer

For details process please refer Cash Handling Non-FE Manual Chapter 5.
6. Creation and Updation of CIF Light – Walk In Customers

For details process please refer Cash Handling Non-FE Manual Chapter 6.
7. CASH RECEIPTS
7.1 Modes of Cash Receipt
7.1.1 Deposit Slip is the only mode of Cash Receipts in the Customer account:
Deposit Slip is used for same branch, Within-City or Intercity Cash Deposit. It is used to Deposit Cash
through branch Cash Counter in a Movement account maintained in any of the HBL branches in that city
or to the centralized GLs for Consumer Banking products such as for Credit Card payments. Further, by
signing the Deposit Slip (Refer Annexure D), Customer authorizes the Bank to recover and debit his
account with any charges on account of transactions as per the Bank’s prevailing Schedule of Charges.
7.1.2 Depositor brings the filled in Deposit Slip himself or obtains the Slip from the counters and fills it in the
branch. Deposit Slip shall only be filled by the Customers and the Tellers are not allowed to complete it
on their behalf.
7.1.3 The bank copy of the Deposit Slip is handed over to the Junior Supervisor by the Teller for record keeping
purposes.
7.2 Scrutiny of Deposit Slip
7.2.1 Deposit Slip and Cash are received from the Depositor along with the Token Slip by the Teller (where Q-
Matic is installed). The Teller should ensure the following when scrutinizing the Deposit Slip:
a. Account Number is clearly written at the place meant for it and is correct and the account is active.
b. Deposit Slip bears the Date of Deposit.
c. Amount in figures is written in the space provided for in the Deposit Slip which has to be filled in
neatly without cutting and overwriting.
d. Amount in words is written without leaving any space in the beginning to avoid any addition.
e. The amount in figures is same as the amount in words.
f. In case of cutting, it should be duly authenticated by the Depositor. It is preferable that the Customer
should be asked to fill a fresh slip.
g. Deposit Slip is filled in such a manner to disallow easy insertion of fictitious details.
h. Separate Deposit Slips should be used for Depositing Cheque and Cash in case both are being
deposited simultaneously.
i. Customer contact number must be written on Deposit Slip so that in case of need Customer could be
contacted.
j. Bank and Customer copy of the Deposit Slip bear the identical Serial Number.
k. The details on both copies i.e. Customer copy and Bank copy of the Slip are identical in all respects.
7.2.2 It is not necessary that the Depositor and the Account Holder should be the same person. Anybody who
deposits the amount can sign or initial the Slip at the place specified for it.
7.2.3 Teller is not authorized to make any amendments in the Deposit Slips. In all cases, it has to be returned
to the Depositor. However, Teller may provide necessary instruction/ guidance to the Depositor to fill in
the Deposit Slip properly and to rectify any errors. In case there is any major discrepancy in the Deposit
Operations Manual
Slip which cannot be rectified by amending etc., same should not be accepted by the Teller and the
Depositor will be directed to fill in a new Deposit Slip.
7.3 Cash Counting
7.3.1 Having scrutinized the Deposit Slip, Cash received from the depositor is counted manually (Note Counting
Machine is also used and tallied with the amount written on the Deposit Slip. Further, denominations will
have to be written on the back of the Slip by the Teller in the space provided for it and initialed with Red
Pen. Further, the Teller will cross any blank spaces on the Deposit Slip and write the amount on the front
of the Deposit Slip with Red Pen. While counting the Cash, the Teller should ensure that the currency
notes are not fake and meet the criteria of the acceptable Legal Tender.
7.3.2 All currency notes which contain any inscription in any form, such as a slogan or message of political,
religious or commercial nature ceases to be a Legal Tender in pursuance of the Legal Tender (Inscribed
Notes) Ordinance, 1977 (XXII of 1977) and Tellers must not accept such currency notes.
7.4 Counterfeit/ Forged Notes Detection
7.4.1 Counterfeit notes are rare, but it is imperative that all personnel involved in the Cash Handling function
are vigilant at all times and well aware of the general and security features of Foreign Currency notes.
They should also be conversant with the methods to be adopted for verification of the different types of
Currency notes.
7.4.2 As far as possible, Currency notes which are being paid in, should be counted (counting machine can be
used and checked for genuineness in the presence of the Depositor before being accepted. This will act
as a deterrent to Depositors who knowingly deposit Counterfeit Currency Notes. In case of suspicion,
magnifying glass or fake note detecting machine (Ultra Violet lamp) can be used for checking the
genuineness of the note.
7.4.3 The suspicious note can be compared with a genuine note to identify the distinguishing features. Further,
if a cut note is received, the serial number on both pieces should be compared. Any note, cut from the
silver lining side, should not be accepted.
7.4.4 Upon detection of such Currency, the Tellers should consult with the MTS/BOM by showing them the
Currency note in question. Upon receiving their concurrence, he is required to stamp the same as
“Cancelled”.
7.4.5 For guidance relating to Foreign Currency notes, the respective Central Bank’s security features/
guidelines should be referred to.
7.5 Posting of Entry in the ETS
7.5.1 In the ETS system the Teller enters the Account Numbers as per the Deposit Slip; the Title of Account is
matched from the deposit slip and the system; upon successful match the transaction is posted.
7.5.2 Following entry is passed in the ETS at the time of acceptance of Cash Receipt:

Cash on Hand:
920001-840 US Dollar
920001-826 Pound Sterling
XXXX
920001-978 Euro
920001-392 Japanese Yen
- Customer Account XXXX
Operations Manual
7.5.3 Supervision Limits are assigned to personnel involved in Cash Handling function at the Branch. Cash
Receipts for each designation above the assigned limit shall be transferred to the next higher authority
designated for the purpose through the ETS. Current designation-wise supervision limits are as follows:
a. Same Branch
Retail Branch Commercial / Corporate Branch

Up to Rs. 50,000: No supervision is required, and As per the limit defined for the branch which is
the Teller can himself accept the Cash and post based on its operational requirement.
the entry in the ETS.
Above Rs. 50,000 and up to Rs 300,000: Junior
Supervisor
Above Rs. 300,000: Branch Operations Manager
(BOM)
b. Cross Branch

Up to Rs 300,000: Junior Supervisor As per the limit defined for the branch which is
Above Rs. 300,000: Branch Operations Manager based on its operational requirement
(BOM)
*Online Limit for Teller in case of Cross Branch Receipts is decided as per the respective branch
requirements.
Note: For calculating limits in Foreign Currency, the above-mentioned limits in equivalent amount of
Foreign Currency are calculated automatically by the system, as per the rates circulated by the Global
Treasury, when the Teller posts the transaction details in the system. The supervision limits are subject to
change from time to time as per the instructions given by Head Office.
7.5.4 In case of deposits in Inactive Accounts, supervision by BOM is required.
7.6 Affixing of Stamp
7.6.1 Deposit Slip is placed in the Tally/ Validation Printer (where available) which is connected to the system
and the following details are printed on the Deposit Slip:
a. Name of the Customer

b. Branch Name
c. Account No.
d. Date
e. Time
f. Teller ID
g. Amount (US $, GBP, EURO or YEN)
h. Online Deposit Charges (if applicable)
i. Net Amount
7.6.2 Branches that do not have Tally/ Validation Printers installed or in case the Printer is not working, “Cash
Received” stamp is affixed on the Deposit Slip. The Deposit Slip is then initialed, and the Customer copy
of the Deposit Slip is handed over to the Depositor. The Bank copy of the Deposit Slip is retained and filed
separately in the Vault/ Strong Room.
During counter hours, the “Cash Received” stamp should not be left Unattended/Unlocked and should be
kept under the custody of the Teller. After closing of Cash Counter, such Stamps should be kept in the
Main Vault for overnight safekeeping.
Note: The staff member shall destroy the Official Stamps upon transfer, retirement and resignation.
Operations Manual
8. CASH PAYMENTS
8.1 Modes of Cash Payment
8.1.1 In case of FCY Cheques (Bearer/Order) are the only modes are available to the Customers for Withdrawing
Cash at the branch counters:
8.2 Scrutiny of the Cheque
8.2.1 The Teller collects the Token Slip (where Q-Matic system is installed) and Cheque from the Customer. The
Teller should ensure the following when scrutinizing the Cheque:
a. Cheque is dated.
b. The Cheque is not Stale (Cheque bearing the Issuance Date prior to six months from the date of its
presentation) or Post Dated (a Cheque, which bears a date in the future ahead of the current date).
c. Amount in figures tallies with the amount in words.
d. The signature on the face of the Cheque tallies with the signature in the Bank’s record (Signature
System or SS Card).
e. In case of Joint Accounts, signatures are in accordance with the Operational Instructions
f. The Cheque is not crossed.
g. Any changes on the Cheque have been authenticated with full signature by the Account Holder
h. The Presenter has signed on the back of the Cheque.
i. If the Cheque is of a Public Limited Company/ Partnership/ Proprietorship, there are signatures of
Authorized Signatories (Attorneys) on the Cheque as well as the rubber stamp of the Company/
Partnership /Proprietorship.
j. If the Cheque is an ‘Order’ Cheque (in favor of a person and Bearer is Crossed), Payee’s CNIC copy
shall be obtained for identification and payment only made to him
k. Cheque is not forged or fraudulent.
l. In case the Cheque belongs to a Photo Account Holder, he is personally present for Cash payment
from his account and in case the Photo Account is of a Blind person, he is accompanied by a person
who can see, read and write.
8.2.2 If the Cheque is presented by a person other than the Account Holder, the original CNIC of the Presenter
is required to be seen. Further, a copy of the Presenter’s CNIC is required to be obtained and attached
with the Cheque in the following cases:
a. The Cheque is an Order Cheque; and

b. For Cross Branch FCY Cash payments equivalent to or above Rs 100,000.
8.2.3 The original CNIC of the Photo Account Holder is required to be seen irrespective of the amount of Cash
payment and the CNIC number is required to be written on the back of the Cheque.
8.2.4 Where Bearer/Order FCY Cheque equivalent to Rs. 100, 000 and above is presented by a Non-Account
Holder, the Account Holder is to be contacted through telephone on the number available with the branch
to confirm the genuineness of the transaction. Customer’s confirmation is an essential requirement for
honoring such Cheques especially where the Cheque and its amount are not in accordance with the
normal activity on the Customer account.
8.2.5 The following approval matrix shall be applicable for withdrawal of cash from remote HBL
branches i.e., cross branch cash withdrawal from HBL accounts:
8.2.6 *Region’s approval subject to:
Operations Manual
i) The ROC (or his nominated RSM).
ii) Input of relevant RC may also be requested, where deemed necessary.
iii) Approval to be sought by Branch from its Region.
iv) Region may make a phone call to the customer to reconfirm withdrawal amount or the
Account Branch.
v) Minimum Due Diligence Factors: Account/Customer Type, KYC, Status, Transaction by

Account Holder or 3rd Party (other than account holder) and the verification of identity,
Capture of transaction details in MISYS, The withdrawal amount vs account activity/history,
Size & Geography of branch.
It is expected that branches would exercise due caution while utilizing these delegated
authorities especially:
a) Call Back Confirmation by payee branch in line with P/INST/3351 of February 17, 2012 for
Cheques of Rs 100,000/- and above.
b) Instructions on “Data Capturing and Sanction Screening of Walk-In Customers and

Creation and Updation of CIF light for Walk-In Customers (please refer section 5 & 6 of this
document for detail)
Transactions exceeding delegation in above matrix shall be approved by Head Branch Operations
Support, Head Office.
8.2.7 If the Cheque is crossed as 'Payee's Account Only' or with just Two Parallel Lines, but the Name of the
Payee is not written in the Payee's column and instead the word 'Cash' is written in this column and the
word 'Bearer' has not been Cancelled, the Cash should not be paid against the Cheque in spite of the fact
that word Cash is written in the Payee’s column. This is because the Crossing on the Cheque signifies that
the ‘Drawer’ does not want Cash to be paid against the Cheque.
8.2.8 Such Cheques should be accepted for deposit in the Payee’s account only and should not be honored on
the counter as the Name of the Payee is not mentioned on the Cheque. The Cheque should be returned
to the Presenter/ Depositor with the reason mentioned on the Cheque Return Memo - 'Name of Payee
Required on the Cheque’.
8.2.9 The signature on the Cheque is then matched with the signature available with the Bank’s records i.e.,
SigCap. Upon successful verification, the Cheque should be cancelled with a Red Pen.
8.2.10 Further in case of Photo Account Holder, the Customer’s photo available in the Bank’s records {i.e. SS
Cards or SigCap} is matched with the person presenting the Cheque.
8.3 Honoring Cheques- Important Precautions
8.3.1 The following precautionary guidelines are required to be adhered to by the Teller at the time of
scrutinizing the Cheque:
Operations Manual
a. All the Cheques written in Bold Script with markers should not be honored on the counter as it may
entail fraudulent intent. All such Cheques should be referred to the MTS/BOM for further checking
using Magnifying Glass or ultraviolet lamps (where available), to ascertain if there is any alteration
on the Cheque.
b. The Cheque’s MICR line contains a series of number. Special Red 'Bleed through Ink’ is used on the
Numerical Digits which penetrates the Cheque Paper and is visible on the reverse side. Since the
numerical cannot be altered or erased, Teller should compare and confirm the Account Number and
the Cheque Number in the MICR line with that printed on the Cheque itself.
c. Special Ink is used as background boxes in Cheques on which Cheque Number and Account Number
are pre-printed. Similarly, the ‘Amount box’ has the anti-forgery green shading incorporated. Any
forced alteration will become visible if the surface is scraped or erased. Teller should use Magnifying
Glass or Ultraviolet Lamp (where available) to observe the alteration(s) more clearly.
d. In case there is difference in the type of pen used or color of ink in writing the Name of the Payee,
Amount and the Signature of the Drawer, it should be considered as a reason for suspicion,
warranting further checking/ verification by BM/BOM.
e. In case of any suspicion, the Account Holder should be contacted to ascertain the genuineness of the
Instrument presented. Contact details available on the Account Opening Form/ SS Card or available
in the system shall only be used for contacting the Customer.
f. In case contact with the Customer cannot be made, it should not be the reason for returning the
Cheque. A common-sense approach has to be taken and consideration should be given to whether
the Cheque and its Amount are in accordance with the normal activity on the Customer’s Account. In
case of such an instance, it should be referred to BOM/BM by the Teller for approval of payment.
g. Where Customer identification is necessary to be ascertained as mentioned in some of the above
cases, CNIC of the Presenter should be obtained and its authenticity should be verified through SMS
verification Service provided by NADRA using a Cell phone. NADRA offers SMS Verification Service
which requires the CNIC Number without dashes/ comas/ full stops, be sent to number 7000. In
response, NADRA provides the Holder's Name as well as his Father's Name (in Urdu fonts) which can
be verified with the actual CNIC.
h. The Teller may tactfully question the Presenter, when and by whom the Cheque was given to him. If
there is any reason for suspicion, the interest of the Customer should be safeguarded, and the
payment dishonored with an appropriate reason.
i. Branch personnel are required to keep the Cheque series properly updated in the system. In case
any Bearer Cheque is presented by a Non-Account Holder which is not within the series, it should be
properly investigated. Cheque Book Issuance Report should be referred for confirming the Cheque
numbers issued on the Customer Account before the Cheque is authorized for payment.
8.4 Instructions given by SBP for Fraudulent Cheques
8.4.1 Following are some guidelines given by SBP for identifying Fraudulent Cheques:
a. Cheques with alteration or having Forged Drawers/Makers Signatures or Forged Endorsements.

b. Cheques with blurry face, improper monogram and fade colors.
c. Paper on which the Instrument is printed is of poor quality.
d. Joint Signatures requirement, if necessary, is not fulfilled.
e. Originator's/Drawer's/Maker's Name is not legible.
f. Often Post Dated or Stale Cheques.
g. Endorsement on Cheque is not in order.
h. Amount in figure on Cheque does not match with amount in words.
i. Cheque supported by some fake letter from an Issuing Authority notifying transfer, provided client
fulfills any requirement like transfer of some Legal, Operational Charges etc. to Drawer.
j. Such Cheques are mostly issued against newly opened accounts.
8.5 Posting of Cheque in the ETS
Operations Manual
8.5.1 After manual scrutiny of the Cheque, the Teller posts the Cheque details in the system. A prompt will be
generated by the system, and it will not process the Cheque in the following cases:
a. Stop Payment Request has been made by the Issuer for the Cheque being posted.
b. Issuer’s Account Balance is insufficient for processing the Cheque.
c. Issuer’s Account has been marked Inactive/ Blocked (BOM’s supervision is required in this case).
8.6 Dishonoring of Cheque
8.6.1 In case the Cheque has to be dishonored, the Teller is required to mention actual reason(s) for returning
the Cheque on the ‘Cheque Return Memo’ (Refer Annexure E). For example, if Cheque has to be
dishonored due to insufficient balance in the Customer’s Account, then the following reason should be
mentioned on the Cheque Return Memo “Insufficient Balance in the Account”.
8.6.2 If the Teller notices, that Cheques issued by a particular Customer are being regularly dishonored due to
want of funds in his account, following steps should be taken:
a. Teller shall notify such instances to the MTS/BOM.

b. MTS/BOM may decide to issue a Letter to the Account Holder requesting him to discontinue such
practices as it is a criminal offence to do so. Account Closure process may also be initiated if Cheques
are dishonored multiple times (BM’s Discretion).
8.7 Posting of Entry in the Equation Teller System (ETS)
8.7.1 Following entry is passed in the system after successful posting of the Cheque for Cash Payment:

- Customer Account XXXX
Cash on Hand:
XXXX
920001-978 Euro
8.7.2 The entry posted in the system is supervised in accordance with the following approval limits:
a. Same Branch

Up to Rs. 50,000: No supervision required, and the Teller As per the Limit defined for the branch
can himself en-Cash the Cheque and post the entry in which is based on its Operational
the system. requirement.
Above Rs. 50,000 and up to Rs 300,000: Junior
Supervisor
Above Rs. 300,000: Branch Operations Manager (BOM)
b. Cross Branch

Up to Rs 300,000: Junior Supervisor As per the limit defined for the branch which
Above Rs. 300,000: Branch Operations Manager is based on its operational requirement
(BOM)
Operations Manual
*Online Limit for Teller in case of Cross Branch Receipts is decided as per the respective branch
requirements
Note: For calculating limits in Foreign Currency, the above-mentioned limits in equivalent amount of
Foreign Currency are calculated automatically by the system, as per the rates circulated by the Global
Treasury, when the Teller posts the transaction details in the system. The supervision limits are subject to
change from time to time as per the instructions given by Head Office.
8.7.3 All Cash payments in case of Photo Account should be jointly authorized by the Junior Supervisor and
BOM, who then mention on the reverse side of the Cheque “signed before me or thumb impression
affixed in my presence” along with their signatures.
8.8 Cash Payment
8.8.1 After the entry in the system, Cheque is placed into the Tally/ Validation Printer (where available) which
is connected to the system and the relevant details of the transaction are printed on the back of the
Cheque.
8.8.2 Where Tally/Validation Printer is not available or is not in working order, “Cash Paid” stamp is to be affixed
on the back of the Cheque in compliance with SBP Circular and initials to be made on the “Cash Paid”
stamp affixed by the Teller.
8.8.3 During counter hours, the “Cash Paid” stamp must not be left Unattended/Unlocked and should be kept
under the custody of the Teller. After closing of Cash Counter, such stamps should be kept in the Strong
Room/ Vault for overnight safekeeping.
8.8.4 Denomination-wise details of the amount being paid to the Presenter should be written on the back of
the Cheque by the Teller.
8.8.5 Cash against the Cheque presented is handed over to the Customer after counting (counting machine can
be used where available) and the Customer is requested to count the Cash before leaving the counter.
8.8.6 If the Customer is a Blind person, he should be accompanied by an authorized person and the Teller should
confirm the amount of payment from the Customer by calling the amount loud, before handing over the
Currency Notes. Signature/ Thumb Impression of the Customer is required to be obtained on the reverse
side of the Cheque as an Acknowledgment. The person accompanying the Blind person is also required to
sign as witness at the back of the Cheque confirming receipt of the Cheque amount.
8.8.7 Customer has the option to demand equivalent amount of PKR. In such an instance, the amount of Local
Currency to be paid is automatically calculated by the system in accordance with the rates circulated by
the Global Treasury.
8.8.8 The Cheque is kept with other paid Cheques and forwarded to the Junior Supervisor who files the same
in the fire proof storage.
Operations Manual
9. CASH TRANSFER DURING THE DAY
9.1 Transfer of Excess Cash to Main Vault
9.1.1 If any of the Teller considers that the Cash on Hand at any time during the day is in excess of his
requirements, he returns the excess Cash to MTS/ Junior Supervisor who will count the Cash received.
9.1.2 MTS/ Junior Supervisor is required to transfer the excess Cash to the Vault and record the amount of Cash
transferred to the Vault in the Cash Register and the ETS system. The Vault Register is updated each time
for such cash transfer.
9.2 Cash Replenishment during Banking Hours
9.2.1 Where the Tellers run short of Cash to meet the Customer requirements, they may get their Cash
replenished as per the following procedure:
a. The Teller will estimate the amount of Cash required.

b. He will communicate his requirement to the MTS/BOM.
c. MTS/BOM will replenish the Teller with Cash available with other Tellers.
d. In case the required amount is available with another Teller, the amount should be transferred in the
presence of MTS/BOM from one Teller to another and a manual entry will be made in the Cash
Register and in ETS with proper acknowledgment.
e. If there is no excess Cash available with other Tellers, the MTS/ BOM will withdraw the amount from
the Vault and hand over the same to the Teller and a manual entry will be made in the Cash Register
and in ETS.
9.3 During the day Cash Transfers to and from Vault Especially When Limit is Breached
9.3.1 During the day the safe is locked under dual control of two persons i.e. Teller and MTS/BOM.
9.3.2 Cash is withdrawn/deposited, and entry is made in the register and subsequently the entry is made in the
system as the cash is deposited in the tills of the Tellers by the BOM.
9.3.3 If the Limit is breached during the day, the same is sent to Foreign Exchange Center (FEC)Cash.
9.3.4 If the Limit is breached overnight, then excess cash insurance cover is obtained from Regional Head
Quarters (RHQ).
Two Men Branches
9.3.5 During the day the safe is locked under dual control of two persons i.e. BOM and BM.
9.3.6 The BOM and BM visit the vault when there is need for the cash to be replenished at the counters or there
is need to deposit extra cash into the Vault.
9.3.7 Cash is withdrawn/deposited, and entry is made in the register and subsequently the entry is made in the
system as the cash is deposited in the safe by the BOM.
Operations Manual
10. Sale to PUBLIC (SALE OF FCY)
As per paragraph 10(ii) of chapter 18, In terms of Notification No. F.E.1/2015-SB dated June 1, 2015, State
Bank has granted general permission to any person to take out of Pakistan US Dollars or equivalent
thereof in other foreign currencies as per the following limit:
Age Group of Maximum Limit per Annual Ceiling per person

Person person per visit (US$ or (US$ or equivalent in
equivalent in other foreign other foreign currencies)
currencies)
Up to 5 years 1,000 6,000
From 5-18 years 5,000 30,000
Above 18 years 10,000 60,000
10.1 Scrutiny of Passport and Visa
10.1.1 Customer requests the Teller for purchasing certain amount of Foreign Currency (USD Dollar, Pound
Sterling, Euro, Japanese Yen or Chinese Yuan) against PKR and presents the passport and visa to the Teller
for scrutiny.
10.1.2 Teller scrutinizes the passport and visa of the customer for ensuring validity. Furthermore, the Teller also
ensures that amount requested by the Customer falls within the permissible limit mentioned above.
10.1.3 Upon successful scrutiny, the Teller shall manually calculate equivalent PKR Currency based on the rate
sheet circulated by Treasury Operations. In case FCY requested by the customer exceeds 5000 USD or its
equivalent in other currencies, Teller shall obtain rate from the FX Treasury Sales Desk via email.
Note: Teller is also required to ensure adherence to the requirement (where applicable) of Chapter 17
(Travel) of Foreign Exchange manual issued by State Bank of Pakistan (Refer Annexure F).
10.2 Cash Counting and Scrutiny
10.2.1 Having calculated the equivalent PKR, Cash (PKR) received from the Customer is counted manually (Note
Counting Machine is also used where available) and tallied with the calculated amount. Furthermore, the
Teller also examines the currency notes to ensure the following: that none of the notes are cut, soiled and
outdated/ out of the circulation or contains slogan or message of political, religious or commercial nature.
10.2.2 Scheduled Banks are bound as per the regulatory requirement to always accept cut, mutilated and soiled
notes. Therefore, Tellers should never refuse the acceptance of such notes (Local Currency only) from
Depositors. Moreover, these notes are required to be sorted into good ones and those unfit for further
circulation. The good notes only are to be issued to the Customers/ general public and the soiled, torn
and unusable notes are required to be banded into packets and deposited with Foreign Exchange Centre
(FEC).
10.3.1 As far as possible, Currency notes received, should be checked for genuineness in the presence of the
customer before being accepted. This will act as a deterrent to customers who knowingly deposit
Counterfeit Currency Notes. In case of suspicion, magnifying glass or fake note detecting machine (Ultra
Violet lamp) where available can be used for checking the genuineness of the note.
Operations Manual
10.3.3 Upon detection of such Currency, the Tellers should consult with the Head Teller/OM by showing them
the Currency note in question. Upon receiving their concurrence, he is required to stamp the same as
“Cancelled”.
10.4 Posting of Entry in the System
10.4.1 Teller enters the following details relating to the sale of FCY transaction using ITA option in MYSIS:
▪ Debit Account (PKR)

▪ Debit Amount
▪ Credit Account (FCY)
▪ Credit Amount
▪ Exchange Rate
10.4.2 Supervisor reviews the information entered by the Teller for accuracy. In case no discrepancy is identified,
the transaction is authorized otherwise the Teller is requested to rectify the discrepancy. Upon
authorization, following entry is generated in the system:

Cash on Hand:
920001-586 Pakistan Rupee XXXX
Cash on Hand - FEC:
XXXX
920001-978 Euro
Chinese Yuan
10.5 Handing Over FCY to Customer
10.5.1 Supervisor endorses the sale of FCY on the passport of the customer and advises the Teller to handover
the FCY to the customer.
10.5.2 Thereafter, the Teller manually counts the FCY (Note Counting Machine is also used where available) and
handover to customer along with the passport and visa. Copies of passport and visa are retained for record
purposes.
Operations Manual
11. TRANSACTIONS WITH PUBLIC (PURCHASE OF FCY)
11.1 Purchase from Public – (For Branches Only)
11.1.1 Paragraph 2 of chapter 11 “Dealings in Foreign Currency, Notes and Coins” allows banks to carry out
foreign currency purchase transactions with the incoming passengers (both Pakistani and Foreigners)
against Certificate of Encashment (Annexure G) issued by the Bank in prescribed form as notified by SBP.
11.2 Scrutiny of Passport and Visa
11.2.1 Customer requests the Teller for selling certain amount of Foreign Currency (USD Dollar, Pound Sterling,
Euro, Japanese Yen or Chinese Yuan) against PKR and presents the passport and visa to the Teller for
scrutiny.
11.2.2 Teller reviews the passport and visa of the customer and ensures that entry stamp in Pakistan is affixed
on the passport (in case of foreigners exit stamp is also required to be ensured). Upon successful scrutiny,
the Teller shall manually calculate equivalent PKR Currency based on the rate sheet circulated by Treasury
Operations. In case FCY to be sold by the customer exceeds 5000 USD or its equivalent in other currencies,
Teller shall obtain rate from the FX Treasury Sales Desk via email.
Note 1: In case passport of the customer has expired, Teller shall review the CNIC/NICOP of the customer
and copy for record purposes
Note 2: Teller is also required to ensure adherence to the requirement (where applicable) of Chapter 17
(Travel) of Foreign Exchange manual issued by State Bank of Pakistan (Refer Annexure F).
11.3 Cash Counting and Scrutiny
11.3.1 Having calculated the equivalent PKR, Cash (FCY) received from the customer is counted manually (Note
Counting Machine is also used where available). Furthermore, the Teller also examines the currency notes
to ensure the following none of the notes are cut, soiled and outdated/ out of the circulation or contains
slogan or message of political, religious or commercial nature.
11.4.1 As far as possible, Currency notes received, should be for genuineness in the presence of the customer
before being accepted. This will act as a deterrent to customers who knowingly deposit Counterfeit
Currency Notes. In case of suspicion, magnifying glass or fake note detecting machine (Ultra Violet lamp)
where available can be used for checking the genuineness of the note.
11.4.3 Upon detection of such Currency, the Tellers should consult with the Head Teller/OM by showing them
the Currency note in question. Upon receiving their concurrence, he is required to stamp the same as
“Cancelled”.
11.5.1 Teller enters the following details relating to the purchase of FCY transaction using ITA option in MYSIS:
▪ Debit Account (FCY)

▪ Debit Amount
▪ Credit Account (PKR)
▪ Credit Amount
▪ Exchange Rate
Operations Manual
11.5.2 Supervisor reviews the information entered by the Teller for accuracy. In case no discrepancy is identified,
the transaction is authorized otherwise the Teller is requested to rectify the discrepancy. Upon
authorization, following entry is generated in the system:

Cash on Hand:
920001-978 Euro XXXX
Chinese Yuan
Cash on Hand
920001-586 Pakistan Rupee XXXX
11.6 Handing Over PKR to Customer
11.6.1 Supervisor endorses the purchase of FCY on the passport of the customer and prepares Certificate of
Encashment (COE) (Annexure G) which is signed by two authorized signatories having PA Number.
Thereafter the passport, visa and COE are handed over to the Teller for releasing of PKR to the customer.
11.6.2 Thereafter, the Teller manually counts the PKR (Note Counting Machine is also used where available) and
handover to customer along with the passport, visa and COE. Copies of passport, visa and COE are
retained for record purposes.
11.6.3 As per FE manual chapter 11 para 2 it is required that payment in PKR can be made to customer subject
to fulfillment of applicable AML/CFT regulations and guidelines
Operations Manual
12. FEEDING OF FOREIGN CURRENCY TO BRANCHES
12.1 Foreign Currency Requisition from Branches
12.1.1 Branches communicate the foreign currency requirements to Foreign Exchange Center (FEC) via email.
The Manager - FEC is responsible for liaising with the branches regarding the foreign currency matters.
12.1.2 MTS at the requesting branch is primarily responsible for communicating foreign currency requirements
to FEC. However, in the absence of MTS, the Officer next in hierarchy at the branch may also liaise with
FEC.
Note: Operations Manager (OM) of the requesting branch is also kept in loop in all emails to FEC.
12.2 Maintenance of Record
12.2.1 All foreign currency requirements received from the branches are recorded in a manual Payment/ Receipt
(PR) Register and in an excel file by an Officer at FEC. The PR register and the excel file remains under the
custody of Manager – FEC. Specimen of the register is as follows:
FCN Purchase Register

Date Month Code USD GBP EURO AED SAR CNY Initial
FCN Sale Register

12.3 Checking the Availability of Foreign Currency
12.3.1 Subsequently, Manager - FEC checks the amount of the foreign currency available at FEC either from the
system or the foreign currency position sheet maintained by him.
12.3.2 In case required amount of the foreign currency is not available at FEC, the following other means are also
available to fulfill the branches’ requirements:
a. Other HBL branches/ FECs; (refer to section 12 below)

b. Other Banks; and (refer to section 13 below)
c. State Bank of Pakistan (SBP) (refer to section 14 below).
12.4 Preparation of Shipment Receipt
12.4.1 Where sufficient amount of foreign currency is available at FEC to fulfill the requirement of the branches,
the required amount of cash is withdrawn from the Vault. (For detailed procedure regarding withdrawal
of cash from the Vault/ Strong room, refer to Cash Handling chapter.)
12.4.2 Foreign Currency notes are counted by the Officer(s) and subsequently placed in the shipment bags under
the supervision of Manager – FEC. Separate bags are prepared for each branch by tallying the currency
amount with the amount appearing in the PR Register. The shipment bags are then sealed with the
security company’s seal by the Manager - FEC.
12.4.3 Cash movement between the FEC and branches is required to be recorded through the Shipment Receipt
(Annexure H) Book provided by the security company. Each shipment receipt contains four copies.
12.4.4 The four copies of shipment receipt are meant for the following purposes:
a. White Copy is for the Security Company.

b. Pink Copy is for Cash receiving department (i.e. Branch or FEC)
c. Yellow and Blue copies are for the department sending Cash (i.e. FEC or Branch)
Operations Manual
12.4.5 Each copy of Shipment receipt contains space for three signatures;
a. Consignor (which may either be Branch or FEC)

b. Security Company
c. Recipient (Branch or FEC)
12.4.6 Manager - FEC contacts the security company via telephone for delivery arrangements of the foreign
currency shipment bags to the requesting branches.
12.4.7 The Shipment Receipt is filled by an Officer mentioning the date, branch name, value of Cash being
delivered and the security company seal numbers. The shipment receipt is signed by the Manager 1 – FEC
and Manager 2 – FEC. Thereafter, the shipment bags along with the shipment receipt are handed over to
the security company personnel after due verification.
12.4.8 In case of any suspicion regarding the identity of any security company representative(s), the security
company should be contacted via telephone to confirm the identity of the representative(s) before
handing over the bags to them.
12.4.9 Signature of the security company personnel should be obtained on the Shipment Receipt as an
acknowledgment. The office copies (i.e. Yellow and Blue copies) are retained by the Officer while the
white and pink copies are handed over to the security company representative.
12.5.1 The following entry is passed in the system by the Officer:

Cash in Transit – Branch:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
12.5.2 Entry posted in the system should be duly supervised by the Manager – FEC.
12.6 Receipt of Cash at Branch
12.6.1 Security company delivers the Cash Bags (Shipment Bags) and Shipment Receipt (Pink and White copies)
from FEC to the requesting branch.
12.6.2 The receipt of cash at the branch is acknowledged by the MTS on Shipment Receipt. MTS should check
the number of bags and their serial numbers against the shipment receipt. Further, if there is any
suspicion regarding the identity of the security company personnel, MTS should immediately call the
security company and confirm their identity.
Operations Manual
12.6.3 Officer(s) at the branch should thoroughly check that the seals of the bags are not damaged/ tampered.
Furthermore, it is also to be ensured that all the packets are properly labeled, stamped, dated and signed
prior to the acknowledgment of Shipment Receipt.
12.6.4 The Cash packet count is also required to be conducted immediately in the presence of the Security
Company personnel. If the Cash delivered is not equal to the amount that was requested, MTS should
communicate the discrepancy to Manager - FEC via email and also through telephone. In this case, the
Shipment Receipt shall not be acknowledged.
12.6.5 The branch retains the pink copy of the Shipment Receipt for its record and returns the white copy to the
Security Company.
12.7.1 After receipt of foreign currency, following entry is passed in the system by the Officer:

Cash on Hand:
Chinese Yuan
Cash in Transit - Branch:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
12.7.2 Entry posted in the system should be duly supervised by the Manager - FEC.
Operations Manual
13. RECEIPT OF FORIGN CURRENCY FROM BRANCHES
13.1 Request from Branch
13.1.1 Where a branch has foreign currency in excess of its requirements or allowed foreign currency retention
limit, the OM of the respective branch notifies the same to the Manager - FEC via email/ telephone.
13.1.2 Subsequently, the Manager - FEC contacts the security company via telephone requesting it to collect the
foreign currency from the respective branch and deliver the same at FEC.
13.2.1 Foreign Currency notes are counted by Officer(s) at the Branch and subsequently placed in the shipment
bags under the supervision of MTS at the Branch. The shipment bags are then sealed with the security
company seal by the MTS.
13.2.2 Cash movement between the FEC and branches is required to be recorded through the Shipment Receipt
(Annexure H) Book provided by the Security Company. Each shipment receipt contains four copies.
13.2.3 The four copies of the shipment receipt are meant for the following purposes:

b. Pink Copy is for Cash receiving department (i.e. Branch or FEC)
13.2.4 Each copy of Shipment Receipt contains space for three signatures;

b. Security Company
13.2.5 The shipment receipt is filled by the Officer mentioning the date, branch name, value of cash being
delivered and the security company seal numbers. The Shipment Receipt is signed by MTS and Head Teller.
Thereafter, the shipment bags along with the shipment receipt are handed over to the security company
personnel after due verification.
13.2.6 In case of any suspicion regarding the identity of any security company representative(s), the security
company should be contacted via telephone to confirm the identity of the representative(s) before
handing over the bags to them.
13.2.7 Signature of the security company personnel should be obtained on the shipment receipt as an
acknowledgment. The office copies (i.e. yellow and blue copies) are retained by the Officer while the
white and pink copies are handed over to the security company representative.

Cash in Transit – FEC:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Operations Manual

Chinese Yuan
13.3.2 Entry posted in the system should be duly supervised by the MTS.
13.4 Receipt of Cash by FEC
13.4.1 Security company delivers the Cash Bags (Shipment Bags) and Shipment Receipt (Pink and White copies)
from the Branch to FEC. (Refer to Cash Handling chapter for detailed procedures at the Branch).
13.4.2 The receipt of cash at FEC is acknowledged by the Manager - FEC on Shipment Receipt. The Manager - FEC
should check the number of bags and their serial numbers against the shipment receipt. Further, if there
is any suspicion regarding the identity of the security company personnel, the Manager should
immediately call the security company and confirm their identity.
13.4.3 Officer(s) at FEC should thoroughly check that seals of the bags are not damaged/ tampered. Furthermore,
it is also to be ensured that all the packets are properly labeled, stamped, dated and signed prior to the
acknowledgment of Shipment Receipt.
13.4.4 The cash packet count is also required to be conducted immediately in the presence of the security
company personnel. If the cash delivered is not equal to the amount that was informed, Manager - FEC
should communicate the discrepancy to the OM via email and also through telephone. In this case, the
shipment receipt shall not be acknowledged.
13.4.5 FEC retains the pink copy of the Shipment Receipt for its record and returns the white copy to security
company.

Cash on Hand:
Chinese Yuan
Cash in Transit - FEC:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Operations Manual
14. ACQUISITION OF FOREIGN CURRENCY FROM OTHER BRANCHES
14.1.1 Where the requisite amount of foreign currency is not available at FEC, Manager - FEC should check the
balance of foreign currency from the system at the other foreign currency dealing branches.
14.1.2 If sufficient foreign currency balance is available in any of the branch, email is sent to OM of the respective
branch whether the requisite amount of foreign currency can be delivered to FEC.
14.1.3 In case the OM agrees to transfer the requisite amount of foreign currency to FEC, he is asked to confirm
the same through an email specifically mentioning the transfer amount.
14.1.4 Manager – FEC contacts the security company via telephone and asks it to make arrangements for:
▪ Receiving the foreign currency from the transferring branch and direct delivery of the same to the
requesting branch in order to avoid delay/ time lag in foreign currency transfer.
▪ Direct delivery to FEC (Refer to Section 11).
14.1.5 If foreign currency is to be delivered directly from the transferring branch to requesting branch, Manager
– FEC should communicate this arrangement via email to OM of both branches.
14.2.1 Foreign Currency notes are counted by Officer(s) at the Branch and subsequently placed in the shipment
bags under the supervision of Manager Teller Service (MTS) at the branch. The shipment bags are sealed
with the security company seal by MTS.
14.2.2 Cash movement between the branches is required to be recorded through a Shipment Receipt (Annexure
H) Book provided by the security company. Each shipment receipt contains four copies.
14.2.3 The four copies of the shipment receipt are meant for the following purposes:

b. Pink Copy is for cash receiving department (i.e. Branch or FEC)
14.2.4 Each copy of Shipment Receipt contains space for three signatures;

b. Security Company
14.2.5 The Shipment Receipt is filled by the Officer mentioning the date, branch name, value of cash being
delivered and the security company seal number. The shipment receipt is signed by MTS and Head Teller.
Thereafter, the shipment bags along with the shipment receipt are handed over to the security company
personnel after due verification.
14.2.6 In case of any suspicion regarding the identity of any Security Company representative(s), the security
company should be contacted via telephone to confirm the identity before handing over the bags to them.
14.2.7 Signature of the Security Company personnel should be obtained on the shipment receipt as an
acknowledgment. The office copies (i.e. Yellow and Blue copies) are retained by the Officer while the
white and pink copies are handed over to the Security Company representative.
This document provides guidance and is exclusively for use by the staff members of Habib Bank Limited. Any act of Page 14-1
divulgence shall be viewed very seriously and shall warrant disciplinary/penal action.
Operations Manual

Cash in Transit – Requesting Branch:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
14.3.2 Entry posted in the system should be duly supervised by MTS.
14.4 Receipt of Cash at Requesting Branch
14.4.1 Security Company delivers the Cash bags (Shipment Bags) and Shipment Receipt (pink and white copies)
from the Transferring Branch to Requesting Branch.
14.4.2 The receipt of cash at the Requesting Branch is acknowledged by MTS on Shipment Receipt sent by
Transferring Branch. MTS should check the number of bags and their serial numbers against the shipment
receipt. Further, if there is any suspicion regarding the identity of the security company personnel, MTS
should immediately call the security company and confirm their identity.
14.4.3 Officer(s) at the branch should thoroughly check that the seals of bags are not damaged/ tampered.
prior to the acknowledgment of Shipment Receipt. The cash packet count is also required to be conducted
immediately in the presence of the security company personnel.
14.4.4 If the cash delivered is not equal to the amount that was requested, MTS should communicate the
discrepancy to the OM – Transferring Branch via email and also through telephone. In this case, the
shipment receipt shall not be acknowledged.
14.4.5 Branch retains the pink copy of the Shipment Receipt for its record and returns white copy to security
company.
Operations Manual

Cash on Hand:
Chinese Yuan
Cash in Transit – Requesting Branch:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
14.5.2 Entry posted in the system should be duly supervised by MTS.
Operations Manual
15. ACQUSIITON OF FOREIGN CURRENCY FROM OTHER BANKS
15.1 Purchase from other Banks and Exchange Companies
15.1.1 As per Chapter 11, Paragraph 3 of the FE Manual issued by SBP, The Bank may also purchase foreign
currency notes, coins and other instruments freely from other Banks and Exchange Companies licensed
by the State Bank of Pakistan (refer to TROPS-Forex Manual).
15.2 Banks’ Requirements of Foreign Currency Notes
15.2.1 As per Chapter 11, Paragraph 5 of the FE Manual issued by SBP, The Bank may replenish their stocks of
foreign currency notes for meeting the requirements of their customers either by purchasing them from
other Banks or by importing them from their overseas branches and correspondents.”
15.3.1 In case the requisite amount of foreign currency is not available at FEC or any branch of the Bank, Manager
- FEC checks the availability of foreign currency with other Banks via telephone/ email.
15.3.2 In case the required amount of foreign currency is available with another Bank, the Manager instructs an
Officer at FEC to prepare a letter to be sent to Treasury Operations (TROPS).
15.4 Letter to Treasury
15.4.1 A letter is prepared by the Officer informing TROPS about the withdrawal of foreign currency from another
Bank. Furthermore, TROPS is instructed to ensure that the requisite amount of foreign currency is
transferred in the Bank’s Nostro Account on a particular date.
15.4.2 The above-mentioned letter is required to be reviewed and approved by two authorized signatories at
FEC.
15.4.3 After reviewing the above-mentioned letter, the authorized signatories sign and stamp the same along
with their P.A no. Thereafter, the letter is returned to the Officer for onward submission to TROPS.
15.5 Letter to Other Bank
15.5.1 A letter is prepared by the Officer, intimating the other Bank about the foreign currency requirement and
confirming that the payment for the same has been made in the other Bank’s Nostro account. (Refer to
Annexure I)
15.5.2 The letter contains the following details:
a. Name of authorized employee

b. Designation of authorized employee
c. CNIC number of the authorized employee
d. P.A no of the authorized employee
15.5.3 The letter is required to be reviewed and approved by two authorized signatories at FEC.
with their P.A no and return the same to the Officer.
15.6 SWIFT Message
15.6.1 The Officer sends an email to TROPS with a scanned copy of Bank to Bank (MT 202) transfer request
(Annexure J) which is signed by two senior branch officials.
15.6.2 Officer at TROPS after processing the request will send a copy of the SWIFT message (MT 202 General
Financial Institution Transfer) to FEC.
Operations Manual
15.7.1 The following entry is manually passed in the system by the Manager - FEC:

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Nostro Account:
0117050-770 US Dollar
7900764-199 Euro XXXX
Chinese Yuan
15.8 Receipt of Cash from Other Bank
15.8.1 After confirmation of the transfer of funds in the other Bank’s Nostro Account, shipment receipt is
prepared by an Officer mentioning the date, branch name, value of cash being delivered and respective
seal numbers. The shipment receipt is signed by the Manager - FEC.
15.8.2 Manager - FEC contacts the security company via telephone for collection of foreign currency from the
other Bank and direct delivery of the same to the requesting branch.
15.8.3 The Shipment Receipt, ‘Letter to Other Bank’ and copy of the SWIFT message (MT202 General Financial
Institution Transfer) is taken to the other Bank by the Authorized Officer (whose name is mentioned in
the “Letter to Other Bank”).
15.8.4 Authorized Officer is required to have the following identification cards, when visiting the other Bank for
collection of the foreign currency:
a. Original CNIC
b. Original Employee Card
15.8.5 After verification of the letter and ensuring that payment has been processed in the bank’s Nostro
account, the required foreign currency is handed over to the Authorized Officer.
15.8.6 Foreign Currency is counted and subsequently placed in the shipment bags by the Authorized Officer.
These bags are sealed with the security company seal. Manager - FEC is intimated via telephone about
receipt of cash and is requested to post entry in the system.
15.8.7 After due verification of the security company personnel, the shipment bags along with the shipment
receipt are handed over to the security company personnel. In case of any suspicion regarding the identity
of the security company personnel, the security company is contacted via telephone to confirm their
identity.
15.8.8 Signature of the Security Company personnel is obtained on the shipment receipt. The office copies (i.e.
Yellow and Blue copies) are retained by the Officer while the white and pink copies are handed over to
the Security Company officer.
Operations Manual
15.9.1 The following entry is passed in the system by an Officer FEC upon receipt of cash from the other Bank:

Cash on hand:
Chinese Yuan
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
15.9.3 The following entry is passed in the system by the Officer after delivery of Cash to the branch:

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
15.9.4 Entry posted in the system should be duly supervised by the Manager - FEC
Operations Manual
16. WITHDRAWAL OF FOREIGN CURRENCY FROM STATE BANK OF PAKISTAN
16.1 Export of Surplus Cash Foreign Currencies by the Bank
16.1.1 Chapter 11, Paragraph 9 of the FE Manual issued by SBP states that in case of need, The Bank can also
obtain currency notes of (US Dollar, UK Pound Sterling, Euro, and UAE Dirham) from the State Bank on
confirmation of credit of counter value in SBP’s Nostro Account in respective currency.
16.2 Foreign Currency Held at the Disposal of the State Bank
16.2.1 Chapter 5, Paragraph 3 of the FE Manual issued by SBP states that Foreign currency balances of the Bank,
whether operated by their Head/Principal Offices or branch offices, shall at all times be held at the
disposal of the State Bank which may give such directions for their disposal as it may consider necessary
and expedient. The State Bank may direct the Bank at any time to sell either ready or for forward delivery,
foreign currency or currencies held by them to the State Bank or to such other person or persons as the
State Bank may direct.
16.3 Foreign Currency Inquiry from SBP
16.3.1 SBP should be contacted only when the requisite amount of foreign currency is not available through
other means i.e. any of the branch of the Bank and other Banks.
16.3.2 SBP’s Treasury Department is contacted via telephone for enquiring about the availability of the required
foreign currency.
16.3.3 Furthermore, the Manager - FEC should also keep in mind that the amount of foreign currency required
to be withdrawn from SBP should be in accordance with the minimum limits as prescribed by SBP.
16.4 Letter to Treasury
16.4.1 A letter is prepared by an Officer at FEC informing Treasury Operations (TROPS) about the withdrawal of
foreign currency from SBP. Furthermore, TROPS is instructed to ensure that the requisite amount of
foreign currency is transferred in the SBP’s Nostro Account on a particular date. (Refer to Annexure K)
FEC.
with their P.A no. Thereafter, the letter is returned to the Officer for onward submission to
16.5 SBP Letter
16.5.1 A letter is prepared by the Officer, intimating SBP about the foreign currency requirement and confirming
that the payment for the same has been made in the SBP’s Nostro account.
16.5.2 The letter contains the following details:
▪ Name of authorized employee

▪ Designation of authorized employee
▪ CNIC number of the authorized employee
▪ P.A no of the authorized employee
16.5.3 Thereafter, SBP letter is required to be signed and stamped along with their P.A no by the following
persons:
▪ Two authorized signatories of FEC

▪ Two authorized signatories of Treasury having SBP P.A no
Operations Manual
16.6 SWIFT Message
16.6.1 The Officer sends an email to TROPS with a scanned copy of Bank to Bank (MT 202) transfer request
(Annexure J) which is signed by two senior branch officials.
16.6.2 Officer at TROPS after processing the request will send a copy of the SWIFT message (MT 202 General
Financial Institution Transfer) to FEC.

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Nostro Account:
0117050-770 US Dollar
7900764-199 Euro XXXX
Chinese Yuan
16.8 Receipt of Cash from State Bank of Pakistan
16.8.1 On the following day, shipment receipt is prepared by the Officer mentioning the date, branch name,
value of cash and respective seal numbers. The shipment receipt is signed by the Manager - FEC.
16.8.2 Manager – FEC contacts the security company via telephone for collection of foreign currency from SBP
and direct delivery of the same to the requesting branch.
16.8.3 The Shipment Receipt, SBP Letter and copy of the SWIFT message are taken by the Authorized Officer to
SBP.
16.8.4 The Officer is required to have the following identification cards, when visiting the SBP for collection of
the foreign currency:
▪ Original CNIC
▪ Original Employee Card
16.8.5 After the verification of the letter and ensuring that payment has been processed in SBP’s Nostro Account,
the required foreign currency amount is handed over to the Authorized Officer of the Bank.
16.8.6 Foreign Currency is counted and subsequently placed in the shipment bags by the Officer. These bags are
sealed with the security company seal. Manager - FEC is intimated via telephone about the receipt of cash.
16.8.7 After due verification of the security company personnel, the shipment bags along with the shipment
receipt are handed over to the security company personnel. In case of any suspicion regarding the identity
of the security company personnel, the security company is contacted via telephone to confirm their
identity.
Operations Manual
16.8.8 Signature of the security company personnel is obtained on the shipment receipt. The office copies (i.e.
Yellow and Blue copies) are retained by the Officer while the white and pink copies are handed over to
the security company personnel.
16.9.1 The following entry is passed in the system by the Officer upon receipt of cash from SBP:

Cash on hand:
Chinese Yuan
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
16.9.3 The following entry is passed in the system by the Officer after delivery of cash to the branch:

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
Operations Manual
17. SELLING OF FOREIGN CURRENCY TO OTHER BANKS
17.1 Sale to other Banks
17.1.1 Chapter 11, Paragraph 8 of the FE Manual issued by SBP states that “The Bank may freely sell foreign
currency notes and coins to other Banks.”
17.2 Receipt of SWIFT Message and Delivery of Foreign Currency
17.2.1 The buying bank approaches HBL, via email/ telephone, inquiring about the availability of foreign
currency.
17.2.2 In case the requisite amount of foreign currency is available with HBL, the buying Bank is informed to
transfer the funds in the HBL’s Nostro Account and thereafter collect the foreign currency from HBL.
17.3 Scrutiny of Documents
17.3.1 Representative of the buying bank visits FEC and hands over the copy of the SWIFT message (MT 202
General Financial Institution Transfer) and “Letter to HBL” to the Manager - FEC. The signatures on the
letter are verified from the Specimen Signature book of the respective Bank.
17.3.2 Copy of CNIC and Employee Card is obtained from the other bank’s representative and verified against
the original.
17.3.3 The Letter is signed by Manager - FEC.
17.4 Recording of Foreign Currency Requirement
17.4.1 All the foreign currency sold to other Banks are recorded in a manual Payment/ Receipt (PR) Register and
in an excel file. The register/ file should be kept under the custody of Manager – FEC. Specimen of the
register is as follows:
FCN Purchase Register

FCN Sale Register

17.5 Handing Over of Foreign Currency
17.5.1 The required amount of cash is withdrawn from the vault. (For detailed procedure regarding withdrawal
of cash from the vault refer to Cash Handling chapter). Subsequently, the foreign currency is handed over
to the other Bank’s representative and his acknowledgement is obtained on the Letter to HBL.
17.5.2 After the foreign currency is handed over to the other Bank’s representative, all the documents received
are filed by the Officer.
Operations Manual
17.6.1 The following entry is passed in the system by the Officer at the time of delivering cash to the other Bank’s
representative

Nostro Account:
0117050-770 US Dollar
7900764-199 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
17.6.2 Entry posted in the system should be duly supervised by the Manager – FEC.
Operations Manual
18. EXPORT OF FOREIGN CURRENCY THROUGH HBL CURRENCY EXCHANGE
18.1Sale to other Banks
18.1.1 Chapter 11, Paragraph 7 of the FE Manual issued by SBP states that Bank may freely sell foreign currency
notes and coins to other Banks.”
18.2Request to Export Foreign Currency to HBL Currency Exchange
18.2.1 FEC sends an email to HBL Currency Exchange (HCE) requesting them to export Foreign Currency and
inquiring about the tentative date for Export so shipment can be prepared accordingly.
18.3Scrutiny of Documents
18.3.1 Representative of HCE visits FEC and hands over the copy of the “Authority Letter” (Annexure L) to the
Manager - FEC. The signatures on the letter are verified from Specimen Signature Book of HCE.
18.4Handing Over of Foreign Currency
18.4.1 The required amount of cash is withdrawn from the Vault (For detailed procedure regarding withdrawal
of cash from the vault refer to the Cash Handling chapter.) Subsequently, the foreign currency is handed
over to the HCE’s representative and his acknowledgement is obtained on the Authority Letter.
18.4.2 After the foreign currency is handed over to the HCE’s representative, all the documents are filed by an
Officer at FEC.
18.5Posting of Entry in the System

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
18.5.2 Entry posted in the system should be duly supervised by the Manager – FEC
18.5.3 Reversal of entry is done by HBL Foreign Exchange Branch after approximately 4 – 5 working days.
18.5.4 Any charges incurred for Export of Foreign Currency will be charged to the respective branch.
Operations Manual
19. DEPOSITING EXCESS FOREIGN CURRENCY TO STATE BANK OF PAKISTAN
19.1 Export of Surplus Cash Foreign Currencies by the Bank
19.1.1 Chapter 11, Paragraph 9 of the FE Manual issued by SBP states that the Branches are also allowed to sell
their surplus cash foreign currency (US Dollar, UK Pound Sterling, Euro and UAE Dirham) to SBP–Banking
Services Corporation, Karachi as per the procedure laid down in F.E. Circular No. 5 dated June 14, 2005
read with the instructions issued by the State Bank from time to time. SBP will provide credit of the
counter value in the Nostro Account of the Authorized Dealer in the same value date, on confirmation of
balances from SBP–Banking Services Corporation, Karachi.
19.2 Foreign Currency Held at the Disposal of SBP
19.2.1 Chapter 5, Paragraph 3 of the FE Manual issued by SBP states that foreign currency balances of the Branch,
whether operated by their Head/Principal Offices or branch offices, shall at all times be held at the
disposal of the State Bank which may give such directions for their disposal as it may consider necessary
and expedient. The State Bank may direct the Bank at any time to sell either ready or for forward delivery,
foreign currency or currencies held by them to the State Bank or to such other person or persons as the
State Bank may direct.
19.3 Preparation of SBP Letter
19.3.1 Any foreign currency in excess of the limit prescribed by the Head Office should be deposited with State
Bank of Pakistan.
19.3.2 Officer at FEC prepares a letter (Annexure M) intimating SBP about the foreign currency that shall be
deposited the following day. Following information is specified in the letter:
▪ Amount of foreign currency to be deposited.

▪ Denomination of foreign currency to be deposited.
▪ Nostro Account where the foreign currency is to be transferred.
▪ Name and Specimen Signature of the person depositing the excess foreign currency.
FEC.
with their P.A no. Thereafter, the letter is returned to the Officer.
19.3.5 A copy of the above letter is also sent to the Treasury Operations (TROPS).
Operations Manual
19.4.1 The following entry is passed in the system by the Officer at the time of delivering cash to SBP:

Nostro Account:
0117050-770 US Dollar
7900764-199 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
19.5Placing Foreign Currency in Shipment Bags
19.5.1 Manager - FEC contacts the Security Company via telephone for delivery of foreign currency to the SBP.
19.5.2 Foreign Currency is placed in the shipment bags by Officer(s) at FEC and subsequently these bags are
sealed with the security company seal by Manager - FEC.
19.5.3 A shipment receipt is prepared mentioning the date, branch name, value of cash delivered and respective
seal numbers. The shipment receipt is then signed by the Manager - FEC.
19.5.4 After due verification the shipment bags along with the shipment receipt are handed over to the security
company personnel. In case of any suspicion regarding the identity of the security company personnel,
the security company is contacted via telephone to confirm their identity.
19.5.5 Signature of the Security Company officer is obtained on the shipment receipt. The office copies (i.e.
Yellow and Blue copies) are retained by the Manager - FEC while the white and pink copies are handed to
the Security Company officer.
19.6Delivery of Foreign Currency to SBP
19.6.1 The Officer visiting SBP presents the SBP Letter and the Shipment Receipt to the Designated Officer at
SBP.
19.6.2 Foreign currency received is counted and acknowledgement is provided on the Shipment Receipt.
Subsequently, the foreign currency is deposited in the HBL’s Nostro account.
Operations Manual
20. FEEDING OF FOREIGN CURRENCY TO FOREIGN EXCHANGE BRANCH
20.1.1 When a Foreign Exchange Branch (FEB) is in need of foreign currency, the OM of the respective branch
communicates the requirement to Manager - FEC via email/ telephone.
20.2 Payment of Cash by FEC
20.2.1 The FEB sends an officer accompanied by a security guard to deliver Memo (Annexure N) from the Branch
to FEC. (Refer the Cash Handling chapter for detailed procedures at the Branch).
20.2.2 The payment of cash at the FEC is acknowledged by the Manager - FEC on Memo sent by the Branch. The
Manager - FEC should ensure that the memo has been signed by the Branch Manager and MTS.
20.2.3 Foreign Currency notes are counted by the FEB Officer(s) and subsequently placed in the shipment bags
under the supervision of Manager – FEC. The shipment bags are then sealed with the Security Company
Seal and seal number is affixed by Manager - FEC.
20.2.4 FEC files the Memo for its record.

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
20.3.2 Entry posted in the system should be duly supervised by Manager – FEC
20.3.3 On Receipt of Cash at FEB, the entry is reversed in the system.
Operations Manual
21. RECEIPT OF FOREIGN CURRENCY FROM FOREIGN EXCHANGE BRANCH
21.1.1 When Foreign Exchange Branch (FEB) has foreign currency in excess of the requirements or allowed foreign
currency retention limit, the OM of the respective branch informs about the excess foreign currency holding
to Manager - FEC via email/ telephone.
21.2 Transfer of Cash by Branch
21.2.1 The FEB sends an officer accompanied by a security guard for delivering the Cash bags and Memo
(Annexure O) from the Branch to FEC.
21.3.1 The following entry is passed in the system by an Officer at the Branch:

9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Cash on hand:
Chinese Yuan
21.3.2 Entry posted in the system should be duly supervised by MTS at the Branch.
21.4 Receipt of Cash by FEC
21.4.1 The receipt of cash at FEC is acknowledged by the Manager - FEC on the Memo. The Manager - FEC should
verify that the Memo has been signed by the Branch Manager and MTS.
21.4.2 The Officers at FEC should thoroughly check that the seals of bags are not damaged/ tampered.
prior to the acknowledgment of the Memo. The cash packet count is also required to be conducted
immediately in the presence of the branch officer.
21.4.3 If the Cash delivered is not equal to the amount that was informed, Manager – FEC should communicate
the discrepancy to the OM via email and also through telephone. In this case, the Memo shall not be
acknowledged.
21.4.4 FEC files the Memo for its record.
Operations Manual

Cash on Hand:
Chinese Yuan
Cash in Transit - FEC:
9901189-840 US Dollar
9901908-978 Euro XXXX
Chinese Yuan
Operations Manual
22. REPORTING OF STATE BANK OF PAKISTAN
22.1 Maintenance of Record
22.1.1 Chapter 22, Paragraph 1 of the FE manual issued by SBP states that Bank should maintain proper record of
all dealings in foreign exchange in its books including transactions on non-resident accounts.
22.2 Submission of Returns to State Bank
22.2.1 Chapter 22, Paragraph 2 of the FE Manual issued by SBP states that the Bank should take utmost care in
compilation of various returns/ statements prescribed in this as also other chapters so that all transactions
are correctly and duly reported. The Bank should also ensure that these returns/ statements are invariably
sent to the State Bank on due dates.”
22.3 Monthly Return Submitted to SBP
22.3.1 Manager – FEC prepares a monthly return statement S-6 (Appendix V- 106) (Annexure P) in soft form
before 5th of the following month. The following returns are submitted:
a. Form C
b. Schedule E3/P3
c. Form G
d. Schedule J
22.3.2 The Manager emails the above-mentioned returns to Head of Regulatory Reporting in Finance.
22.3.3 The Returns received from the branches are uploaded in International Transaction Reporting System
(ITRS) for consolidation for onward submission to SBP.
22.3.4 The Consolidated returns are submitted to SBP via Data Acquisition Portal before 5th of the following
month.
Operations Manual
23. END OF DAY PROCEDURES
23.1 Journal Reconciliation Checklist (JRC) Review: Cash Balancing
23.1.1 At the end of day (EOD), Journal Reconciliation Checklist (JRC Report) is generated by BOM/MTS/ Junior
Supervisor. All transactions carried out during the day as appearing in the JRC must be matched with
physical instruments (Cheques, Deposit Slips and Debit Vouchers etc.) by BOM/MTS/ Junior Supervisor.
23.1.2 Tellers are required to sort Currency notes which are in their possession. After sorting, all the Cash packets
and rings along with the ‘Cash Paid’ and ‘Cash Received’ stamps are handed over to Junior Supervisor.
Loose Currency Notes and Coins are put into the Cash box. Junior Supervisor subsequently counts the
Cash packets, Rings and Coins and prepares a Cash Position Sheet.
23.1.3 Cash Position Sheet is forwarded to MTS/ Junior Supervisor and BOM who shall reconcile it with physical
cash and the balance appearing in the Cash GL in the system. If excess/ short Cash is identified by any of
the Tellers, the prescribed procedures will be followed.
23.1.4 Cash packets, Rings and Cash box along with the ‘Cash Paid’ and ‘Cash Received’ stamps are then moved
in the presence of the BOM/MTS/ Junior Supervisor by Tellers to the Vault (refer the Start of Day
Procedures for detailed procedures relating to the opening of Vault and Safe). BOM/MTS/ Junior
Supervisor should sign Cash Position Sheet as a confirmation of the supervision after which the Closing
Balance of the day is mentioned on the sheet.
23.1.5 The cash is then handed over to BOM who matches the physical cash with the amount in the system and
prepares cash position summary and signed by both MTS and BOM.
23.1.6 Vault room is accessed by the authorized persons and manual entry is made in the Vault Register. Cash is
placed inside the safe along with manual entry in the Cash Register.
23.1.7 The safe is locked which consists of 4 keys out which of which 2 are in the custody of BOM, 1 with Teller
and 1 with MTS.
23.1.8 The Grill door is locked which has dual control and consists of 2 Keys which are in the custody of 2 persons
i.e. BOM and MTS.
23.1.9 The Main Vault door is locked which has dual control and consists of 4 Keys which are in the custody of 2
persons i.e. BOM and MTS and manual entry is made in the Vault Register by the 3 persons at the time of
exiting the vault.
23.1.10 Security System of the vault is activated through password.
Two Men Branches
23.1.11 At the end of day, the physical cash is balanced against the amount appearing in the system and entry is
passed in the system.
23.1.12 BOM is prepares the cash position summary for the day.
23.1.13 The cash is then handed over to BM of the branch who matches the physical cash with the amount in the
system and signs the cash position summary.
23.1.14 Vault room is accessed by the authorized persons and manual entry is made in the Vault Register. Cash is
placed inside the safe along with manual entry in the Cash Register.
23.1.15 The safe is locked which consists of 4 keys of which 2 are in the custody of BOM and 2 are with BM.
23.1.16 The Grill door is locked which has dual control and consists of 2 Keys which are in the custody of 2 people
i.e. BOM and BM.
Operations Manual
23.1.17 The Main Vault door is locked which has dual control and consists of 4 Keys which are in the custody of 2
persons i.e. BOM and BM and manual entry is made in the Vault Register by the 3 persons at the time of
exiting the vault.
23.1.18 Security System of the vault is activated through password with BOM / BM of the branch.
23.2 Safe Custody of Documents
23.2.1 The checked copy of JRC along with all source Documents/ Instruments should be sealed in an envelope
and stored as permanent record in separate fireproof safes/ cabinets placed for this purpose by Junior
Supervisor/Senior Supervisor.
23.3 Safe and Vault Closing
23.3.1 After ensuring that the physical Cash present in the safe is the same as the balance appearing in the
system GL as well as the Cash Position Sheet, the safe is locked by applying the four keys which are held
by BOM, Junior Supervisor and MTS.
23.3.2 Subsequently the Grill Door and Main Door of the Vault are also locked with the keys.
23.3.3 A four-digit code is entered into the Digital Security System (DSS) by BOM to lock the main Door of the
Vault.
23.4 Recording of Excess Cash
23.4.1 Following procedures are to be followed if excess Cash has been identified during the EOD procedures:
a. The Teller shall report the excess Cash amount to the BOM, BM or MTS.
b. The reporting Teller shall thoroughly review and match the amount appearing on the Deposits Slips,
HBL Cheques Paid and any Debit Vouchers or Instruments against which payments were made, with
the JRC report.
c. If the source of excess Cash still remains unresolved, then under the supervision of the BOM or Branch
Manager, the following entries will be recorded in the System, the same day excess Cash is
discovered.

Cash on Hand:
XXXX
920001-978 Euro
Sundry Deposit – Sundry Creditors (Excess
Cash):
XXXX
900001-978 Euro
23.4.2 While posting of entries in the system, following information is required to be entered in the narration
line in both the Dr and Cr entries:
a. Narration Line 1: Teller / User ID

b. Narration Line 2: Teller Name with Personnel Number
c. Narration Line 3: Time and Date when the excess Cash was discovered
Operations Manual
23.5 Settlement of Excess Cash to CD/SB Miscellaneous Account
23.5.1 If no Customer lodges a claim for excess Cash identified within 15 days, then the branch will reverse the
entry earlier passed on the 16th day but not later than 30 days from date of passing the original entry.
Following entry is then passed:

Cash):
XXXX
900001-978 Euro
CD/SB Miscellaneous Account:
9912340-840 US Dollar
XXXX
9912340-978 Euro
23.5.2 At the time of settlement of excess Cash entries in the system, following information is required to be
entered in the narration line in both the Dr and Cr entries:
a. Narration Line 1: Teller / User ID

b. Narration Line 2: Teller Name with Personnel Number
c. Narration Line 3: Time and Date when the Cash excess was discovered
23.5.3 The entries for transfer require the joint approval of BOM and BM based on limits assigned to them.
23.5.4 All items, posted in the CD/SB Miscellaneous accounts are retained for 10 years and if no claims are
received during the period, the unclaimed amount in respective Currencies are transferred to SBP
centrally by HOK. However, in case relevant Customer details are not available, specific permission for
transferring the accounts should be obtained from the SBP by the year – end before surrender.
23.6 Refund to Customers
23.6.1 If at any stage, the Customer contacts the branch and files a complaint for having received Cash, less than
the amount withdrawn by him, the following procedures should be followed:
a. The BM and BOM shall personally supervise the handling of the claim and satisfy themselves with the
evidence of ownership being provided by the Customer in respect of the excess Cash. BM or BOM
are required to jointly verify the claim and tally it with the details available in the system for the
transaction to which the claim relates.
b. An Undertaking (wherever required) along with all the supporting documentary evidence including
the copy of the attested CNIC of the Claimant will be obtained and filed.
23.6.2 After obtaining and verifying the evidence presented and finding it genuine, BM or BOM has the authority
to credit the Customer’s account or pay Cash, only if the following conditions are fulfilled:
a. Claim from Customer is received within 15 days of the identification of excess Cash;
b. Claim amount equivalent in Foreign Currency is less than Rs. 1,000; and
c. Claim amount has not been transferred to CD/SB Miscellaneous account.
Operations Manual
23.6.3 If any of the above-mentioned conditions are not fulfilled, a written request to respective ROC should be
sent, who will authorize the transaction and payment.
23.6.4 The following entry is passed in the system to record the refund of excess Cash to Customers:
a. Claims Lodged Prior to Settlement to CD/SB Miscellaneous Account

Cash):
XXXX
900001-978 Euro
- Customer Account / Cash on Hand XXXX
b. Claims Lodged after Settlement to CD/SB Miscellaneous Account

CD/SB Miscellaneous Account:
9912340-840 US Dollar
9912340-826 Pound Sterling XXXX
9912340-978 Euro
- Customer Account / Cash on Hand XXXX
23.7 Cash Shortage
23.7.1 Where Cash is found short after the Cash Balancing has been done during the End of Day procedures, an
Officer independent of the Cash Handling Function of the branch will be designated to investigate the
difference.
23.7.2 Difference is often found by comparing the actual payment with the denominations written on the back
of Cheques or in case of Soiled Notes accepted from the General Public which may not have been
accounted for.
23.7.3 If the branch is unable to reconcile the Cash Shortage, BOM/BM communicates the shortage to Regional
Operations Chief (ROC) on the same business day via email along with the details of the responsible staff.
23.7.4 BOM /BM shall ask the responsible staff to cover the shortfall.
23.7.5 If the short amount cannot be recovered from the responsible staff, following entry is passed in the
system for recording the amount of shortage:

BBBB9901211840 Cash Shortage-US Dollar XXXX
BBBB9901211826 Cash Shortage-Pound Sterling
BBBB9901211978 Cash Shortage-Euro
BBBB9901211392 Cash Shortage-Japanese Yen
Cash Shortage-Chinese Yuan
- Cash on Hand XXXX
23.7.6 Regardless of material or immaterial amount it should be recorded in the system.
Operations Manual
In case of an exception where the amount of cash shortage is too significant, the matter is escalated, and an email
is forwarded to the Region by BOM. ROC is intimated of the issue who decides on the best course of action under
the circumstances.
Two Men Branches
23.8 Excess Cash at Day End
23.8.1 In case of excess cash at day end, all the transactions and their respective vouchers processed during the
day are checked to identify the discrepancy by the BOM and BM of the branch.
23.8.2 If excess cash remains unbalanced at the end of day, the following entry is made in the system:

- Excess Cash Account XXXX
- Cash on Hand XXXX
23.8.3 After 15 days, the amount is transferred to Miscellaneous Account. If a customer approaches the branch
for settlement of the excess cash after 15 days, then approval of ROC is required prior to settlement.
23.9 Shortage Cash at Day End
23.9.1 In case of cash shortage at day end, all the transactions and their respective vouchers processed during
the day are checked to identify the discrepancy.
23.9.2 If shortage remains untraced, BOM responsible for operating the specific counter is required to make
good the shortage.
23.9.3 In case of an exception where the amount of cash shortage is too significant, the matter is escalated, and
an email is forwarded to the Region by BOM. ROC is intimated of the issue who decides on the best course
of action under the circumstances
23.9.4 For ETS system – record of vault transfer / cash out and distribution to cash counter refer start of day,
during the day and end of day procedures above.
23.9.5 The “Cash in Hand” appearing in the system and the sheet manually prepared indicating the Cash Position
in the Vault is reconciled in an excel sheet by the Teller.
23.9.6 Where the cash is reconciled with the Cash in Hand position, Teller transfers the cash from his I.D to the
main GL.
23.9.7 In case where the cash is not reconciled, necessary corrections are made, and it is ensured that the
position is reconciled.
23.9.8 Cash balance is updated in the General Ledger (GL) by the Teller / Key Custodian. The "position of notes"
sheet and the cash position in the GL is counter checked with the currency present in the vault and the
bundles are counted in the presence of Teller / Key Custodian. After ensuring that the cash physically
present is as per the general ledger and the cash position sheet, the cash in hand is placed in the vault
and the key is inserted and safely locked. The code is entered into the Digital security system.
23.9.9 The report of Teller cash position sheet along with the instruments are filed by the MTS/Junior Supervisor
for record purposes.
Operations Manual
24. SAFETY OF CASH – SECURITY CONSIDERATIONS AT THE BRANCH
24.1 Restricted Access to Cash Area
24.1.1 Only authorized employees of the branch should be allowed to enter the Cash area. A list of all authorized
employees duly signed by the BOM should be placed on the door of the Cash area. BOM shall ensure that
the entrance to the Cash area is always restricted and the security guard is always posted outside. In case,
if a person whose name is not included in the list wants to enter the Cash area, approval/permission of
the BOM will be required for this purpose.
24.2 Cash Counter Security
24.2.1 Safety of Cash in the custody of each Teller must be ensured by providing him with the means to lock up
Cash and other Valuables at his Counter position irrespective of whether each Teller is provided with a
separate enclosure or not.
24.2.2 Unless absolutely necessary, the Tellers should not be allowed to leave their Counter positions while
holding Cash. Those required to leave their positions, even if it is for a short duration, will do so only after
locking all the Cash, Valuables and stamps in the drawers provided to them. Even though all positions may
be locked, at least one Teller must always remain in a common enclosure containing Cash.
24.3 Minimum Cash at Counters
24.3.1 Branches have been instructed to take out minimum Cash from the safe for meeting the day's need. It is
understood that the branch shall also receive Cash on the Counter against which payments can be made.
If during business hours, the branch receives Cash in huge quantity, the excess Cash should be
immediately transferred to the Safe/ Vault to avoid any mishap. The BM/ BOM should monitor that the
excess Cash is not accumulated on the Counters. It should also be ensured that minimum possible Cash is
kept in the branch to avoid revenue loss as the branch earns no income on its Cash balances.
24.4 General Guidelines for Cash Safety
24.4.1 Following measures are required to be taken/ ensured by BM/BOM:
a. Vault door remains locked all the time except at the time of Cash withdrawal/deposit from/to the
vault.
b. An armed guard is always present outside the Vault door, branch Main door/Entrance and Cash
Counter.
c. The Cash Counter is never left unattended during the business hours.
d. In case of short leave of any Teller, another Teller replaces him so that Customer Service does not
suffer. In such a situation, proper handing over and taking over should be carried out which should
be documented. If nobody is replacing the Teller, his system should be properly logged off in the
presence of BM/ BOM and Cash handed over to the MTS.
e. Vault and the Cash Counter areas are monitored through the CCTV and live footages are always
available to BM/BOM.
f. In case of any unwanted movement/commotion inside or outside the branch, BM/BOM is required
to ensure that the Cash Counter/Vault is immediately secured.
g. A Panic button is installed under each table in the Cash area and also in the room of BM/BOM and
security guards. It shall be used where the personnel feel any threat of raid/theft.
24.5 SBP Currency Management Strategy
24.5.1 High resolution CCTV cameras in controlled environment for all activities of CPC with capacity of video
recording to be retained for 60 days. However, in case of dispute, the recording is preserved till the
dispute is finally settled
Operations Manual
25. INSURANCE OF CASH
25.1 The Bank has arranged Insurance Cover from a reputed Insurance Company in respect of the following:
a. Cash-in-Premises
b. Cash-in-Transit (where Security Company does not provide its services)
25.2 Insurance Policy includes all Currencies {Rupees, Foreign Currency, Bearer Instruments (Prize Bonds)},
Negotiable Instruments and Non-Negotiable Securities (e.g. Banker’s Cheque, Defense Savings
Certificates etc.), and Claims, if any, will be payable in Pak Rupees.
25.3 The Insurance Cover has been obtained for each branch in order to insure Cash during the day and
overnight float which is termed as ‘Branch Cash Retention Limit’. The same has been communicated to
the respective BMs via a Memo.
25.4 ‘Cash-in-Premises’ amount includes:
a. Local Currency in the Vault, Counter, ATM, Cash Deposit Machine (CDM); and
b. Foreign Currency in the Vault and Counter.
25.5 Foreign Currency in hand is converted into Local Currency by the BOM at the rates circulated by Global
Treasury of the Bank on every day end in order to comply with the insurance limit of the branch as the
insurance coverage is provided in Local Currency only.
25.6 BOM/ MTS / BM should request ROC through an email for Insurance Cover in case the Cash on hand
exceeds the allowed Cash Retention Limit during the day or for the overnight. The email should contain
the amount which is in excess of the aforesaid limit and should also ask for an acknowledgement. ROC
arranges the Insurance Cover by communicating the requirement to the Insurance Department – GAD,
HOK. A confirmation is received by the branch from the ROC on the next working day (which was emailed
to insurance company on that same day) stating that excess Cash at the branch of the previous day was
insured. A print of this email should be generated and filed.
25.7 Cash-in-Transit with respect to insurance refers to the Cash movement by branches located in remote
areas where Security Companies do not provide their services. The Bank has taken an Insurance Cover for
Cash-in-Transit for all such branches. If the Cash to be transferred exceeds the branch Cash-in-Transit
Insurance Limit, the branch should consider making Cash transfer through multiple trips in such a manner
that overall Cash-in-Transit insurance cover is not breached. However, if the multiple trips’ option is not
feasible due to any practical reason, ROC/Insurance Department– GAD, HOK should be contacted to
obtain the insurance coverage for the excess amount. The Cash is transferred only after the branch
receives the confirmation from ROC/ Insurance Department – GAD, HOK that the excess amount is
insured.
25.8 In case armed guards are not available for any reason for the purpose of Cash Transfers, the branch should
contact the Insurance Department /ROC requesting for Special Insurance Coverage. Only on receipt of
confirmation that the Special Cover has been arranged, Cash should be transferred.
Operations Manual
26. CURRENCY NOTES MANAGEMENT
26.1 Soiled/ Defective/ Claim Notes
26.1.1 SBP facilitates all Banks by accepting their Soiled/Cut/Claim Notes and reimbursing value against the
same. The Chest/ Sub Chest maintained at National Bank of Pakistan (NBP) branches are now also
authorized to accept claim Notes likewise from Commercial Banks and deposit the same with the SBP BSC
offices under whose jurisdiction they fall.
26.1.2 “Soiled Notes” are defined as those notes which become dirty and soft due to humidity and their constant
use and change of hands. “Cut Notes”, are Notes, which are in two pieces either horizontally or vertically
but are full notes. Now cut notes also fall under the category of Soiled Notes as per the latest SBP
guidelines regarding Currency Management.
26.1.3 Notes having more than two torn pieces, washed, oiled or having any chemical spilt over them and
requiring special examination are called “Claim Notes”.
26.1.4 Further, Notes which are torn, disfigured, partially cut, damaged or slightly burnt provided ¾ portion
thereof is intact are called “Mutilated/ Defective Notes”. The main difference between the
aforementioned categories arises in their exchange process with the SBP, therefore, Teller preparing
Soiled/ Defective/ Claim Notes bundles must have clear knowledge enabling them to distinguish amongst
the aforesaid types of Notes.
26.1.5 The values of following Notes are not payable by SBP under its Note Refund Regulations:
a. Less than half of a full Note.

b. Found to be forged.
c. Deliberately Cut, Mutilated or Tampered.
d. Carrying any message of a Political Character / Nature.
e. Portrait of Quaid-e-Azam is desecrated.
f. Cancelled by any Field Office of the SBP BSC, NBP Chest, Nominated Commercial Bank or against
which the value has already been paid.
26.1.6 Soiled & Defective Notes should be kept separately by the Tellers and packets of such Notes should be
stamped as “Soiled” or “Defective” respectively. Packets of these Notes are required to be deposited with
CPC.
26.1.7 Claim Notes are directly submitted to SBP for refund purposes.
26.2 Sorting of Currency Notes
26.2.1 Currency Notes must be sorted on a daily basis by Tellers of every branch during business hours or at day-
end into two major categories i.e. Re-Issuable Notes and Non-Issuable Notes. The Non-Issuable category
is further bifurcated into Soiled Notes, Defective Notes and Claim Notes. Amount received in heavy tender
(i.e. 500, 1000 and 5,000 Notes) should be sorted Over the Counters immediately upon receipt. Cash
received at Counters should not be used for payment to Public without sorting.
26.2.2 Notes should be properly sorted in Re-Issuable and Non-Issuable packets. Once a packet of Notes is
sorted, the Teller shall clearly identify/ stamp on the wrapper of the packet as “Sorted” along with the
Name of the Bank, Branch, and Date of Sorting and Initials of the Teller. Once such packets are in
circulation, further sorting would not be required till the packet is unbundled.
26.2.3 Notes are counted physically and through Note Counting Machine (if available in the branch). Notes are
then banded (denomination wise) in ‘packets’ of 100 Notes each. Ten packets of any denomination Notes
duly tied into a bundle is called “Ring”. The Notes shall not be banded in haphazard and disorganized
manner. Remaining Notes are called “Loose Notes”.
Operations Manual
26.2.4 Loose Notes and Coins are to be kept separately in a Cash box and at the day-end, such Notes and Coins
are transferred to the Vault.
26.2.5 Tellers are required to ensure that only good quality Currency Notes are issued at the Cash Counter. SBP
BSC offices have formed special teams that pay surprise visits to our branches, to examine the quality of
Currency Notes being issued to Customers. Therefore, BM/BOM shall keep a close check on the quality of
Notes being dispensed from the Cash Counters of the branch so that penalty from SBP in respect of quality
of Notes can be avoided.
26.2.6 Avoid stapling of foreign currency notes and deliver the same from their counters in unstapled condition
with proper banding of note packets.
Operations Manual
27. SURPRISE CASH INSPECTION
27.1 At least once in a month, a surprise count of the entire Cash (Local and Foreign Currencies) is required to
be carried out by the AOM. He should thoroughly check the JRC report of that day and compare the same
with the source documents. The Cash is to be counted and compared with the system GL and the Cash
Position Sheet prepared by the Cash Handling personnel.
27.2 Having done all the above, BM should satisfy himself that the branch is balanced in respect of its Cash/
Foreign Currency holdings and sign the Cash Position Sheet as an acknowledgement of having carried out
the Cash inspection.
27.3 Further, ROC is required to pay periodic visits to examine that the branches are regularly sorting Notes
into good and usable bundles and sending Soiled/ Torn Notes to Foreign Exchange Centers/SBP/NBP.
Operations Manual
28. CURRENCY TRANSACTION REPORT UNDER ANTI MONEY LAUNDERING ACT
28.1 Introduction
28.1.1 Anti-Money Laundering Act, 2010 is one of the measures taken by the Government of Pakistan to fulfill
its international obligations to counter Money Laundering. This law has provided the basic legal
framework to counter Money Laundering and Terrorist Financing.
28.1.2 The Act determines the procedure and manner of furnishing information on suspicious transactions by
Financial Institutions to SBP as per the procedure and manner laid down in the Act.
28.2 Currency Transaction Report (CTR)
28.2.1 AML act requires the branches to obtain and record detailed information of all the Cash transactions
exceeding Rs.2.0 [In line with HBL Circular P/INST/3769] million. In this regard, Teller/MTS/BOM should
ensure that prescribed information is obtained from the Customer for all Cash transactions whether for
Receipts or Payments exceeding Rs. 2.0 million (or its equivalent amount in Foreign Currency). The
information is required to be obtained and documented in the system:
a. Person Involved in Transaction(s) - A Person on whose behalf transaction is conducted i.e. Account
Holder of HBL.
b. Person Conducting Transaction(s) - i.e. person actually depositing / receiving Cash either for himself
or on behalf of someone else.
c. Amount and Type of Transaction
28.2.2 Customer requesting transaction (i.e. Deposit or Withdrawal) for over Rs. 2.0 million (equivalent amount
in Foreign Currency to be considered) is referred to Teller/MTS/BOM. The Teller/MTS/BOM directly deals
with the Customer and obtains the required information from him before Cash is handed over/ received
from the Customer and he/she should fill out the information in the system (refer Annexure Q – system
screen).
28.2.3 The Teller/MTS/BOM should make the Customer understand why this information is being obtained. He
should inform the Customer that the diligence is being carried out as per the requirements of Anti Money
Laundering Laws of Pakistan and Directives issued by SBP in this regard from time to time, requiring the
Banks to perform Enhanced Due Diligence for large Cash transactions.
Operations Manual
29. ADDENDUM
HBL does not have Standard Operating Procedures (SOP) regarding the following paragraphs of the FE
Manual and thus such paragraphs have been included in this manual as Addendum.
29.1 General
29.1.1 As per para 1 of chapter 18 “Import Export of currency notes and coins” of FE Manual ,in exercise of the
powers conferred by sub-section (1) of Section 8 of the Act, the Federal Government has issued
Notification No.F1(8)/EF/49 dated the 2nd May, 1949 and No.1(2)ECS/48 dated the 1st July, 1948 as
amended by Notification No.1(14)-EF/49 dated 5th November, 1949, prohibiting the bringing or sending
into Pakistan from any place outside Pakistan, of Pakistan and foreign currency notes or bank notes, un-
issued or in circulation, or coin, except with the general or special permission of the State Bank.
29.2 Import of Pakistan Currency Notes
29.2.1 As per para 2 of chapter 18 “Import Export of currency notes and coins” of FE Manual, under Notification
No.FE.5/92-SB dated the 28th December, 1992, State Bank has granted general permission for bringing
into Pakistan notes legal tender in Pakistan not exceeding Rs 500 from India and Rs 3,000 from any country
other than India, in value, in all per person at any one time.
29.3 Import of Foreign Currency Notes and Coins
29.3.1 As per para 3 of chapter 18 “Import Export of currency notes and coins” of FE Manual, The State Bank has
also granted under Notification No.F.E.30/49-SB dated the 5th November, 1949 and Notification No. F.E.
5/92-SB dated the 28th December, 1992 general permission to the travelers to Pakistan, to bring with
them without limit foreign currency notes except un-issued notes and coin, except coin which is legal
tender in India, which can be brought only up to Rs.5/- in value per person at any one time
29.4 Ban on sending Pakistan and Foreign Currency Notes or Coin by Post
29.4.1 As per para 4 of chapter 18 “Import Export of currency notes and coins” of FE Manual, the permission
contained in preceding paragraph is valid only for bringing in of Pakistan or foreign currency notes or coin
by travelers personally with them, but not for sending them into Pakistan by post or otherwise which is
illegal. Currency notes and coin sent by post to Pakistan are liable to be confiscated, which is besides the
legal action that will be taken under the Act in such cases.
29.5 Export of Pakistan Currency Notes
29.5.1 As per para 5 of chapter 18 “Import Export of currency notes and coins” of FE Manual, the State Bank has
granted general permission vide Notification No.FE.4/92-SB dated the 28th December, 1992 for taking
out from Pakistan currency notes of the Government of Pakistan and State Bank of Pakistan notes not
exceeding Rs 500 and Rs 3,000 in value to India and any country other than India respectively, in all per
person at any one time.
29.6 Export of Currency on Steamers and Aircrafts
29.6.1 As per para 6 of chapter 18 “Import Export of currency notes and coins” of FE Manual, the State Bank has
granted general permission for export of currency which has been brought into Pakistan in the safes of
vessels or aircrafts, or which has been taken on board a vessel or aircraft with the permission of the State
Bank.
29.7 Prohibition to sell Pakistan Currency Notes Abroad
29.7.1 As per para 7 of chapter 18 “Import Export of currency notes and coins” of FE Manual, Pakistan currency
notes up to Rs 500 and Rs 3,000, which the persons leaving Pakistan are permitted to take with them to
India and to any country other than India respectively, are not intended for expenditure in foreign
countries, but are meant for immediate expense on their return to Pakistan 1and/or for in-flight purchases
Operations Manual
on PIA’s international flights. HBL should bring this to the notice of travelers when issuing exchange to
them for travel purposes.
29.7.2 As an exception, rupee amounts encashed, at the interbank rates, from foreign currency accounts of
NGOs, UN/Other Donor Agencies, funded through remittances from abroad, may also be allowed to be
taken to Afghanistan without any limit. HBL would issue Encashment Certificate and a Certificate, in
duplicate, stating that the foreign currency has been encashed for the purpose of Afghanistan. One copy
of this certificate would be submitted to Customs Authorities and the duplicate, stamped by Customs
Authorities as ‘Amount allowed to be taken out’, would be kept by the concerned NGO/agency. The
record of all such transactions would be kept by the Bank for SBP inspection.
29.8 Ban on Export of Foreign Exchange Instruments and Pakistan and Foreign Currency Notes and Coin by
Post
29.8.1 As per para 8 of chapter 18 “Import Export of currency notes and coins” of FE Manual, the permission
contained in TOC 5 is valid only for taking out foreign exchange instruments and currency notes and coin
by the travelers themselves, but not for sending them out by post or otherwise, which is illegal and
renders the foreign currency instruments and currency notes and coin so sent liable for confiscation,
besides any legal action that may be taken against the sender under the Act.
29.9 Non-convertible Currency Notes
29.9.1 As per para 4 of chapter 11“Dealings in Foreign Currency, Notes and Coins” of FE Manual, many countries
have restrictions on import of their own currency notes and do not also allow their repatriation through
banking system. Surplus collection of such foreign currency notes can be disposed of in the international
centers at market rates. HBL should arrange with their overseas branches or correspondents to keep them
fully informed of such restrictions on import and repatriation as also about demonetization, currency re-
organization etc., in foreign countries. Such information may also be passed on by the Bank to those
Exchange Companies who are their customers. HBL should regulate the sale of foreign currency notes
etc., to travelers keeping in view the restrictions of the respective countries so that they are not put to
any loss or inconvenience on arrival in the foreign country concerned.
29.9.2 Sale of foreign currency notes and coins etc. to other Authorized Dealers.
As per para 8 of chapter 11, Authorized Dealers may freely sell foreign currency notes, coins and other
instruments to other Authorized Dealers
29.10 Disposal of Surplus Notes
29.10.1 As per para 9 of chapter 11“Dealings in Foreign Currency, Notes and Coins” of FE Manual When HBL is
unable to dispose of its holdings of foreign currency notes by sale to the public or other banks, it may
dispatch such surpluses to its agents or correspondents abroad for crediting their value to their Nostro
account.
29.10.2 Acceptance of surplus foreign currency notes by SBP-Banking Services Corporation from the Authorized
Dealers.
As per para 10 of chapter 11, Authorized Dealers are also allowed to sell their surplus foreign currency
notes (US Dollar, UK Pound Sterling, Euro and UAE Dirham) to SBP–Banking Services Corporation, Karachi
Office as per the following procedure.
However, for detailed procedure please refer to Foreign Exchange Manual Chapter 11, Para 10
https://www.sbp.org.pk/fe_manual/pdf/2018/Chapter-11.pdf
29.10.3 Provision of foreign currency notes by SBP-Banking Services Corporation to the Authorized Dealers.
Authorized Dealers may purchase foreign currency notes from SBP-Banking Services Corporation, Karachi
Office after giving credit of counter value in SBP’s Nostro account in the respective currency. SBP-Banking
Operations Manual
Services Corporation, Karachi Office will provide foreign currency notes to the Authorized Dealer on
having confirmation from the State Bank to the above effect.
Operations Manual
30. ANNEXURES
ANNEXURE A
Vault Register
Vault In/Out Register
Details of Person Purpose of

Time Checked By
Date entering in the vault Vault
Access
Name Initials In Out Custodian Reviewer
This document provides guidance and is exclusively for use by the staff members of Habib Bank Limited. Page 30-1
Operations Manual
ANNEXURE B
Cash Register
Cash Register
Amount of Amount
Cash of Cash Denomi
Date Time Cash Transfer
Withdrawn deposited nation
from Vault in Vault
In Out Amount Name Signature
Transferor Transferee Transferor Transferee
Operations Manual
ANNEXURE C
Cash Transfer/ Distribution Slip
12/12/13 15:30
Branch 0038 TARIQ ROAD, KARACHI
Increase Cash 2
From Teller MZ3801

To Teller SH3401
Currency PKR
Amount ******************50,000CR
Carried Forward ************1,691,967
Teller ID SH3401 ISN 128
Operations Manual
ANNEXURE D
Deposit Slip
a. Bank Copy
Operations Manual
b. Deposit Slip – Customer Copy
c. Flip Side of Deposit Slip
Operations Manual
ANNEXURE E
Cheque Return Memo
CHEQUE RETURN MEMO
Branch_____________________________________________________________________
Date_______________________________________________________________________
Cheque No._________________________________________________________________
Amount Rs._________________________________________________________________
DRAWN ON SAVINGS / CURRENT A/C NO._________________________________________
RETURNED UN-PAID FOR REASON NO.___________________________________________
1. Payee’s endorsement required

2. Payee’s endorsement irregular
3. Payee’s endorsement requires bank confirmation
4. Drawer’s signature differs from specimen supplied/required
5. (A) Cheque post dated
(B) Cheque is out of date (stale)
6. Amount in words and figures differ
7. Alteration in __________________requires drawer’s full signature
8. Cheque mutilated
9. Payment stopped by drawer
10. Effects not cleared, may be presented again
11. Funds insufficient
12. Crossed cheque should be presented through a bank
13. Clearing house stamp required
14. Cheque to be signed in the presence of and attested by an officer of the bank
15. Bank’s discharge required/irregular
16. Not drawn on us
17. Drawn on inactive/restricted account
18. Drawn on blocked account
19. Clearing stamp date is invalid
20. Cheque is incomplete
21. Account closed
22. Title of account differs/required
________________________
AUTHORISED OFFICER
Operations Manual
ANNEXURE F
Chapter 17 of the FE Manual (Travel)
1. General
This chapter sets out the rules in accordance with which the Airlines/Shipping Companies/Travel Agents
may sell tickets and Authorized Dealers may release foreign exchange for travel abroad.
2. Persons from whom applications will be received by the State Bank
In cases where booking of passage and release of foreign exchange require State Bank's prior approval,
SBP-Banking Services Corporation will entertain applications for approval of passage on Form "P" or "P-
2" (Appendices V-66 and V-67 and for release of foreign exchange on Form T-1 (Appendix V-68) from the
following only:
(i) Applicants themselves.
(ii) Authorized representatives of Airlines/Shipping Companies.
(iii) Authorized representatives of such travel agencies/general sales agents licensed by the Government
under the Travel Agencies Act, 1976 and Overseas Employment Promoters licensed by the Bureau of
Emigration and Overseas Employment, which are recognized by the State Bank for the purpose.
(iv) Authorized representatives of the Authorized Dealers.
3. Applications for grant of State Bank’s recognition.
Applications for grant of recognition for the purpose of para 2 (iii) above should be made to the State
Bank through the bankers of the applicants. These applications should, in addition to (i) a confidential
report from the applicants’ bankers and (ii) a list showing the names of their directors, proprietors,
partners etc., as also their nationalities and addresses in Pakistan, be accompanied by the following:
(i) IATA TRAVEL AGENCIES: Original and one photo copy each of
(a) approval of IATA Membership and
(b) license granted by the Government under the Travel Agencies Act, 1976.
(ii) NON-IATA TRAVEL AGENCIES:(a) Letters from three IATA airlines sponsoring their request and (b)
original license granted by the Government along with its photocopy.
(iii) GENERAL SALES AGENTS: (a) Original license granted by the Government under the Travel Agencies
Act, 1976 along with its photo copy and (b) a letter from the airline concerned indicating appointment
as their general sales agents.
(iv) OVERSEAS EMPLOYMENT PROMOTERS: Original license granted by the Bureau of Emigration and
Overseas Employment along with its photo copy.
State Bank will, however, accord recognition in its absolute discretion. Recognition so granted is liable to
be withdrawn by the State Bank at any time without assigning any reason.
Operations Manual
4. Travel to countries other than Afghanistan by Pakistan nationals residing in Pakistan
(i) SALE OF TICKETS IN PAKISTAN.

(a) Airlines/Shipping Companies/Travel Agents may sell tickets to Pakistan nationals’ resident in Pakistan
against payment in Pakistan Rupees on production of passport and in case the traveler is over 18
years of age also Computerized National Identity Card (CNIC).
(b) Airlines/Shipping Companies/Travel Agents may sell tickets on any carrier to Pakistani crew members
going abroad to join ships, on the basis of a certificate from the Shipping Master and a certificate
from the local agents of the foreign ship owners to the effect that the cost of passage is being paid
out of the remittable rupee collections of their foreign principals and that the same will be reported
in the relative monthly Disbursement Statement of the concerned principal. The local agent's
certificate along with the Shipping Master's Office certificate should be submitted with the monthly
"Return of Passage Bookings (Appendix V-38)".
(ii) TICKETS RECEIVED FROM ABROAD.
Travel against P.T.As/tickets on PIA/Pakistan Shipping Companies as well as on foreign carriers
received from abroad may be allowed without approval of the State Bank of Pakistan.
(iii) REBATED TICKETS.
(a) Travel by employees of Airlines/Shipping Companies and their dependents against 100%
rebated/free tickets may be authorized by the carriers concerned. Travel by persons entitled to
partly rebated tickets of PIA/Pakistan Shipping Companies may also be authorized by the carriers
concerned.
(b) Travel against 100% rebated tickets on the inaugural flights and other travel against
complimentary tickets issued under IATA Regulations may also be allowed on foreign
Airlines/Shipping Companies without any annual limit.
(c) Airlines/Shipping Companies are authorized to issue 100% rebated tickets to the employees of
other Airlines/Shipping Companies travelling on official duty. In such cases the Airlines/Shipping
Companies should attach a certificate indicating the name of Airline/Shipping Company on
whose official business the employee concerned has travelled.
5. Travel by non-resident Pakistan nationals.
(i) Airlines/Shipping Companies/Travel Agents are authorized to book passage of students studying
abroad who wish to visit Pakistan on holidays or for other reasons, on production of a declaration by the
parents/guardians countersigned by the Authorized Dealers through which remittances are made for
education of the students concerned. These declarations should be surrendered in support of the
bookings reported in the monthly Return of Passage Bookings. Where one-way passage of a student is
desired to be booked on completion of studies, Airlines/Shipping Companies/Travel Agents may issue
ticket on the basis of Authorized Dealer's certificate not later than 6 months after completion of the
studies.
(ii) Pakistani national residents abroad returning to their jobs and their family members accompanying
them, may be sold one-way ticket for outward journey by any carrier.
(iii) Pakistani national residents abroad and their family members living with them, who come to Pakistan
on short visits, may be sold ticket for any destination against surrender of equivalent amount in foreign
exchange. The encashment certificate (Appendix V-9) issued by an Authorized Dealer in Pakistan should
be surrendered along with monthly "Return of Passage Bookings".
(iv) Pakistani emigrants holding foreign passport may be sold one-way ticket for their return journey to
their country of residence.
Operations Manual
6. Booking of Passage for official travel of Government servants, employees of semi government
institutions/autonomous bodies & nationalized/taken over institutions/ banks/other public-sector
organizations and travel of official delegations/foreign nationals engaged by public sector
organizations.
(i) On production of Air Travel Warrant (Appendix V-69), Passport and CNIC in original, passage for the
official travel of Government servants or members of an official delegation as detailed in the warrant
may be booked by PIA or a travel agent, in which case the latter will approach the PIA for ticketing
against Miscellaneous Charges Order (MCO). In the case of travel by the officials of the
departments/institutions/public sector organizations etc., which do not issue air travel warrant,
passage may be booked by PIA on submission of an official letter from the
department/institution/public sector organization concerned authorizing such travel along with the
passport and CNIC, in original. If the passage is desired to be booked by a
department/institution/public sector organization through their approved travel agent, they may do
so but in that case the travel agent should approach the PIA for ticketing against MCO. In cases where
such traveler is abroad and ticket for inward journey is desired to be issued by the
department/institution/public sector organization concerned, production of passport and CNIC in
original will not be required. Release of foreign exchange to such officials will continue to be made
by the SBP-Banking Services Corporation.
(ii) Inward or round-trip passage of foreign expatriates engaged by the public-sector organizations for
employment with them may also be booked by PIA or a travel agent, in which case the latter will
approach the PIA for ticketing against MCO on the basis of employer's letter of request.
In the above cases PIA/travel agents will, before booking of passage, ensure that the air travel warrant or
the letter of authorization or the employer's letter of request, as the case may be, is genuine and it has
been issued over the signature of an authorized official of the concerned department/institution/public
sector organization. In case of doubt, PIA/travel agents may contact the concerned government
department/institution/public sector organization, for verification. In support of such bookings, the air
travel warrants or the letter of authorization or the employer's letter of request, as the case may be,
should be attached with the relative monthly "Return of Passage Bookings".
7. Booking of passages of Foreign Nationals.
In the following cases Airlines/Shipping Companies/Travel Agents can book outward/inward or round-trip
passages of foreign nationals without the prior approval of the State Bank:
(i) Passages paid for by Foreign Missions/International Organizations/United Nations and its
Organizations.
Where passages of foreign nationals are paid for by foreign missions/international organizations in
Pakistan through cheques drawn by them on their convertible Rupee accounts or foreign currency
accounts in Pakistan. In such cases it will be necessary for the traveler to produce to Airlines/Shipping
Companies/Travel Agents an official letter from the foreign mission /international organization
concerned confirming that the cheque has been drawn on their convertible Rupee/foreign currency
account. The official letter should also indicate the number of cheque as well as the name of the bank
on which the cheque has been drawn. As regards the United Nations and its Organizations,
Airlines/Shipping Companies/Travel Agents may accept payments for such bookings through cheques
drawn on any of their official bank accounts in Pakistan.
(ii) Booking of passages of Foreign Nationals working/residing in Pakistan and their Family Members.
(a) Where travel is undertaken by foreign nationals and their family members provided such foreign
nationals are employed with a Government or a Semi-Government agency and if employed in
the private sector, they hold work permit/visa from the concerned authority. In such cases
Airlines, Shipping Companies and Travel Agents should ask the foreign national to produce a
certificate of employment from the Government or the official agency concerned or a copy of
the work permit/work visa. In their monthly returns the Airlines/Shipping Companies will
invariably quote the number and date of the letter/permit/visa in support of such bookings.
Operations Manual
Passages of foreign nationals working in Pakistan who do not hold permission letter but are
otherwise enjoying exchange facility from the SBP-Banking Services Corporation/an Authorized
Dealer or are employed in educational/charitable institutions or hospitals can also be booked
against payment in rupees without the prior approval of the State Bank. Airlines/Shipping
Companies will report such bookings in their monthly return duly supported by a certificate of
the bankers of the concerned foreign national to the effect that he/she is enjoying family
maintenance remittance facility from the SBP-Banking Services Corporation/an Authorized
Dealer (Name of the Office) vide (Permit No.) dated________ or a certificate from the
educational/charitable institution or hospital where the concerned foreign national is employed.
(b) Where travel abroad to the country of domicile is undertaken by foreign nationals and their family
members residing/working in Pakistan but such travel is not covered by sub-para (a) provided
their continuous stay in Pakistan prior to the issue of ticket is not less than 6 months, which
should be verified with reference to the immigration stamp on the passport of the travellers.
(iii) Foreign Experts/Technicians.
Where inward/outward or round-trip journey is undertaken by foreign experts/technicians being
engaged in the private sector for rendering such services as supervision of installation, commissioning
of the plant and training of personnel. The employer’s letter of request and their bankers certificate
that engagement of the foreign national is covered by the Industrial Policy Statement should be
attached with the monthly "Return of Passage Bookings".
(iv) Booking of Passage of Foreign Nationals against Encashment Certificates.

(a) Where outward passage of foreign nationals (including persons of Indo-Pak origin), irrespective of
their residential status, is desired to be booked against encashment certificate of Authorized
Dealers (Appendix V-9) evidencing receipt/encashment of foreign exchange in Pakistan in cover
of the Rupee cost of the relative ticket, provided foreign exchange has been surrendered to an
Authorized Dealer not earlier than 30 days from the date of booking. While reporting such
bookings in their monthly "Return of Passage Bookings" airlines and shipping companies will
enclose the relative encashment certificate in support of such bookings.
(b) Where outward passage/excess baggage, whether accompanied or unaccompanied, of foreign
tourists is desired to be booked against payment in foreign exchange to the airlines/shipping
companies on holidays or at odd hours when banks are closed, the foreign exchange so
surrendered by the tourists and accepted by airlines/shipping companies, shall be surrendered
by them to an Authorized Dealer on the next working day along with a letter indicating the name
of the traveler and particulars of his passport viz. its No. and place of issue and a bank's
encashment certificate obtained. These certificates shall be attached by the Airlines/Shipping
Companies along with their relative passage/freight statement in support of such bookings.
(c) Where outward passage or excess baggage, both accompanied and unaccompanied, of foreign
nationals is desired to be booked against International Credit Card, the Airlines/Shipping
Companies have first to satisfy themselves about the genuineness, validity etc., of the Card and
then prepare a Charge Form. The Charge Form will be signed by the Card holder in
acknowledgement of the purchase made against the Card. The name of the Card holder, Credit
Card No. etc., would be clearly indicated on the Charge Form in proof of Credit Card having been
presented by the holder for booking of passage or excess baggage. A copy of the Charge Form
duly filled and signed by the Card holder will be attached by the Airlines/Shipping Companies
along with their relative passage/freight statement in support of such bookings.
(v) PTAs/Tickets received from Abroad.
Where travel abroad is undertaken by foreign nationals against PTAs / tickets received from abroad.
(vi) Foreign Students.

Where travel abroad to any destination is undertaken by foreign students studying in Pakistan. A
certificate of the educational institution concerned should be surrendered with the monthly "Return
of Passage Bookings".
Operations Manual
(vii) Foreign Crews.

Where outward journey is undertaken by foreign crews of foreign shipping companies, provided the
cost of passage is paid by the agent of the foreign shipping company.
(viii) Foreign Born Wives and Children of Pakistan Nationals.
Foreign born wives and children of Pakistan nationals, holding foreign passports and ordinarily
residing in Pakistan are eligible to the facilities mentioned in paragraph 4, 8, 16, 17 and 24 provided
they otherwise qualify for the same.
8. Travel to Afghanistan.
Airlines/Travel Agents can book outward or round-trip passages without the approval of the State Bank
for travel to Afghanistan.
9. Journey from Pakistan against Outward Coupons of Return Tickets.
Airlines/Shipping Companies may authorize persons to emplane/embark against outward coupons of

return tickets provided the traveler is a foreign national or in the case of Pakistani national, the traveler
is resident/settled abroad and holds a work permit/residence visa abroad or his stay abroad is not less
than 6 months.
10. Passage approval in other cases and its validity.
In all cases other than those specified in previous paragraphs Airlines/Travel Agents/Shipping Companies
should not book passages unless SBP-Banking Services Corporation's approval on Form 'P' / 'P-2' is
produced to them. Passages booked against SBP Banking Services Corporation's approval on Form 'P'/'P-
2' should provide for travel within 3 months from the date of approval in respect of journeys originating
from Pakistan.
11. Issue of Tickets.
(i) Airlines/Shipping Companies and Travel Agents may book passages against payment in Rupees as
permissible under the rules, provided booking is made by normal direct route. In other cases, prior
approval of the SBP-Banking Services Corporation is necessary.
(ii) Tickets for outward journeys from Pakistan issued by Airlines/Shipping Companies or Travel Agents
under the general authority delegated to them in terms of paragraphs 4, 5, 6, 7 and 8 should
invariably indicate the date of departure which should be within three months from the date of issue
of the tickets.
(iii) If a request is made to the Airlines/Shipping Companies or Travel Agents for an alteration in the date
of departure after a ticket has been issued, the Airlines/Shipping Companies or Travel Agents may
allow extension in the date of departure up to one month from the date on which a person is
originally booked to travel.
(iv) Airlines and Travel Agents should make the following endorsements on tickets issued to passengers
travelling within Pakistan or to Afghanistan:
(a) For transportation within Pakistan: - "Valid for transportation within Pakistan only".
(b) For transportation to Afghanistan for which approval on form 'P' is not necessary: - "Destination
not changeable".
(v) Airlines/Shipping Companies/Travel Agents, while issuing tickets, will endorse the passport of the
passenger in the following manner under their proper authentication and stamp:
(a) Ticket of .............................. (Name of carrier) for .............................. issued (destination) on
.............................. for .............................. (purpose of visit)
STAMP & SIGNATURE
(b) In case where tickets/PTAS are received from abroad, the endorsement on the passports should
be made by the carrier concerned in the following manner:
Operations Manual
Travel to .............................. (destination) against the ticket of .............................. (name of

carrier) received from abroad authorized for .............................. (purpose)
vi) In all cases of issue of tickets under the authority of paras 4 and 5 of this chapter, the number of the
passport and its date and place of issue will be recorded by the Airlines/Shipping Companies/Travel
Agents on the first coupon of each ticket. A photo copy of these coupons will be submitted by the
foreign carriers along with the monthly "Return of Passage Bookings" prescribed vide paragraph 15
of this chapter. The number of the relevant paragraph of this chapter will be quoted in column No.
12 of the "Return" in those cases where passage is sold under the authority delegated to the
Airlines/Shipping Companies/Travel Agents.
12. Collection of Difference in Fare.
(i) It will be in order for the carriers to accept difference arising either from increase in fare or rerouting
in respect of tickets issued in Pakistan subject to the same terms and conditions as laid down for issue
of tickets under the general authority delegated to them in this chapter. In case of tickets purchased
abroad, difference may be accepted in Pak Rupees if the traveler is otherwise entitled to purchase a
ticket against payment in Pak Rupees under the facility of private travel allowed in terms of the
provisions of this chapter.
(ii) In the case of foreign nationals coming to Pakistan against tickets issued outside Pakistan and who, on
arrival in Pakistan, desire some alteration or amendment in the ticket, airlines and shipping
companies or travel agents may carry out such alteration or amendment without the prior approval
of the State Bank provided additional payment in Rupees on account of the cost of such
amendments/alterations does not exceed Rs. 100/- per person. In such cases amounts in excess of
Rs.100/- can be collected by airlines, shipping companies etc., only with the prior approval of the
State Bank. This restriction, however, does not apply to cases where additional payment in Rupees is
made by the foreign traveler out of funds received from abroad or against encashment of foreign
currency or M.C.O's issued abroad.
13. Refund against Cancellation of Tickets.
Carriers have general permission to allow refund against partly or wholly unutilized tickets without the
prior approval of the State Bank in the following cases:
(i) Wholly unutilized tickets:

(a) Where the carriers have satisfied themselves by examination of relative documents that the ticket
holder has not drawn any foreign exchange.
(b) Where the foreign exchange drawn by the ticket holder has been surrendered to an Authorized
Dealer. In such cases the relative encashment certificates should be attached with the refund
statement.
(ii) Partly utilized tickets: Where refund is in respect of
(a) Travel between two points outside Pakistan except where a point of travel involved is in India or
Bangladesh, and
(b) Return journey portion of a ticket originally issued for two-way travel.
14. No refunds Outside Pakistan.
(i) In all cases of bookings made against payments in Rupees, whether single or round trip, no refunds
should be granted outside Pakistan. In all such cases refunds should be made only in Rupees in
Pakistan. All tickets/vouchers etc., must be marked accordingly. Airlines and Shipping Companies
should also ensure that such refunds are not given in the form of exchange vouchers or in any other
form, which can be used for further transportation. All such refunds must be made either by cheque
or in cash.
(ii) In respect of a first-class ticket involving travel by sea or air issued to a traveler, whether Pakistan or a
foreign national, it is not permissible to convert it into one, which enables the passenger to travel in
Operations Manual
a lower class. All such requests must be referred to the SBP-Banking Services Corporation for prior
approval.
15. Return of Passage Bookings.
(i) Airlines and Shipping Companies should furnish to the concerned Authorized Dealer a monthly return
of all passages sold or tickets issued by them in the prescribed form (Appendix V-38) according to the
instructions contained in para 3 and para 4 of Chapter 14.
(ii) In all cases of cancellations or refunds of passages a monthly statement should be submitted in the
prescribed form (Appendix V-41). In this regard reference is invited to para 3 and para 4 of Chapter
14.
(iii) No returns are required to be submitted by Travel Agents to the State Bank. They are, however,
required to maintain a complete record of all passages sold by them in the prescribed form (Appendix
V-38).
16. Release of Foreign Exchange by Authorized Dealers for foreign travel.
Authorized Dealers may release foreign exchange for foreign travel in accordance with the instructions
set out below:
(i) Sale of Foreign Exchange to Pakistani national residents in Pakistan for travel to countries other than
Bangladesh and Afghanistan.
Pakistani national residents in Pakistan are entitled to Private Travel Exchange Quota (PTEQ) of U.S.
$50/- per day per person subject to a maximum of US$2,100 per calendar year.
For countries other than Bangladesh and Afghanistan. This quota may be drawn from Authorized
Dealers in accordance with instructions contained in subsequent sub-paragraphs in lump sum or in
installments over a period of one calendar year. Children below the age of 2 years are entitled to 10%
of the PTEQ mentioned above while children over 2 years of age but below 12 years of age are entitled
to draw 50% of PTEQ. The PTEQ will be released by the Authorized Dealers for the period of stay
abroad as may be declared by the applicant on ‘T-1’ form subject to the prescribed maximum ceiling.
The period of stay abroad declared by the applicant should be substantiated by the Authorized
Dealers with reference to the number of days for which visa, if any, has been granted and from the
dates of outward/inward journeys, if indicated in the tickets.
Authorized Dealers should record in the relevant passports, release of PTEQ in full at one time or in
instalments with date, month and year of issue. In cases where passport is presented within one year
of its issue and it bears the endorsement that the holder thereof has previously travelled abroad on
another passport which has been cancelled and returned, the Authorized Dealers should invariably
call for the previous passport in order to determine the entitlement of PTEQ.
In case the endorsement shows that the previous passport had been retained by the authorities after
cancellation, Authorized Dealers may issue foreign exchange on the basis of the written affirmation
by the person concerned about the foreign exchange drawn by him since 1st January of the relevant
calendar year to date.
(ii) PTEQ can also be released against one-way ticket.
(iii) Banks authorized to deal in foreign exchange will release foreign exchange to the travelers as indicated
above, on production of the following: -
(a) Passport.
(b) CNIC
(c) Ticket
(d) T-1 form duly completed.
(e) Visa in case of travel by land route.
Operations Manual
Before issuing foreign exchange on the scale indicated in preceding sub-paragraph (i), Authorized
Dealers should satisfy themselves about the genuineness of the request for release of PTEQ and verify
with reference to the passports of the travelers that they are entitled to the PTEQ. It should also be
verified from the passport that the journey for which the installment of PTEQ was last drawn, was
actually undertaken. Authorized Dealers will ensure that the serial number(s) of the ticket(s) and the
name of the airline/shipping company are invariably indicated in the columns provided for the
purpose in the Authorized Dealer's Certificate provided in "T-1" form.
(iv) In the case of travel by land route, Authorized Dealers may release PTEQ subject to entitlement on
submission of "T-1" form, passport, CNIC and visa.
(v) No foreign exchange will be made available by Authorized Dealers for travel to Afghanistan.
(vi) Authorized Dealers will keep Photostat copies of the following documents in their record and present
the same to the Inspection Teams of the State Bank:
a) Pages 1, 2 and 3 with inside title page and that page of the passport on which
endorsement of release of foreign exchange is made.
b) First coupon of air/steamer ticket.
c) Visa
17. Sale of foreign exchange to Pakistani nationals’ resident in Pakistan for travel to Bangladesh.
Authorized Dealers may release to Pakistani national residents in Pakistan as PTEQ US$100/- per head on
each visit to Bangladesh subject to the condition that children up to the age of 12 years will be given
US$50/- per head. The foreign exchange may be released on production of passport, CNIC in original, "T-
1" form and Air/Steamer ticket. The Air/Steamer ticket and passport of the traveler should be endorsed
with the amount released as prescribed in paragraph 42 ibid except in case of travel by land route where
only the passport should be endorsed. It should also be verified from the passport that the journey, for
which PTEQ was last drawn, was actually undertaken.
18. Private travel by Government Servants, employees of Semi-Government
Institutions/autonomous bodies and nationalized/taken over institutions/banks. The instructions

contained in paragraphs 4, 8, 16, 17 and 24 will apply. However, tickets will be issued, and foreign
exchange released on submission of relevant order of the competent authority sanctioning leave ex-
Pakistan, in addition to other prescribed documents. Before releasing PTEQ in such cases Authorized
Dealers should ensure that it is clearly indicated in the Leave Order that the traveler has not been allowed
to draw leave salary/ pension in foreign exchange.
19. Restriction as to re-issue of unspent amount of ‘PTEQ’ surrendered to an Authorized Dealer.
Unspent amount of foreign exchange brought back by a traveler out of the 'PTEQ' drawn by him and
surrendered to an Authorized Dealer can be re-issued to him for subsequent travel abroad within the
approved limits.
20. Travel by journalists/participation in international conferences/seminars/games/ meetings and sports

events etc. in private capacity.
Persons proceeding abroad to attend international conferences, symposia, seminars, meetings etc., in
their private capacity and journalists travelling abroad to cover journalists’ events etc., will be allowed
foreign exchange by the SBP-Banking Services Corporation at the rate of US$60/- per head per day subject
to a maximum of US$1,000/- per head for countries other than India, Bangladesh and Afghanistan. In case
of persons proceeding for these purposes to India and Bangladesh foreign exchange will be allowed by
the SBP-Banking Services Corporation at the rate of US$40 per day subject to a maximum of US$600/-.
Operations Manual
21. Sale of foreign exchange for Professional Training.
Authorized Dealers may release foreign exchange on the following scales to persons sponsored by their
respective institutions/organizations in the private sector for professional training abroad on submission
of the prescribed Application Form (Appendix V-70) by the employing institutions/organizations:
GL Code For the first four For Periods extending beyond

weeks four weeks.
Top level Executives like General Daily Allowance
Managers, Chief Accountants, Chief as per scale set US$ 1,200 p.m. (US$ 500 p.m. for
i Engineers, Directors, etc. out in Appendix India only)
V-71
Junior Executives. -do- US$ 1,200 p.m. (US$ 250 p.m. for
ii
India only)
22. Foreign exchange for Tabligh.
Release of foreign exchange over and above the PTEQ for Tabligh requires SBP Banking Services
Corporation's prior approval.
23. Foreign exchange for Medical Treatment abroad.
(i) Authorized Dealers may remit foreign exchange up to US$ 50,000/- or equivalent in other foreign
currencies on account of medical treatment of resident Pakistanis only after satisfying themselves
about bona fides of the transaction. Remittances should be sent directly to the account of concerned
reputable foreign Hospital via SWIFT, telegraphic transfer or demand draft after obtaining the
following documents:
a. Appendix V-72 duly filled in by the patient/next of kin/sponsor.
b. Invoice/estimate of the foreign hospital.
c. A ‘self-declaration’ from the patient, his/her next of kin or from sponsor declaring
amount of foreign exchange essentially required for treatment abroad.
(ii) In addition, Authorized Dealers may also release cash foreign exchange equivalent to US$ 5,000/- each
to the patient and one attendant which should be duly endorsed on his/her/their passport(s).
(iii) In case of foreign exchange requirements for medical treatment abroad in excess of the above limit,
the concerned Authorized Dealer will forward the case to the Director, Foreign Exchange Operations
Department, SBP-Banking Services Corporation, Head Office, Karachi along with justification and
documentary evidence for consideration.
(iv) Authorized Dealers will retain all related record including the documents submitted by the applicant
as mentioned in this paragraph for on-site inspection by the State Bank’s Inspection Team.
24. Release of Exchange for Miscellaneous purposes.
Authorized Dealers may release US$ 50 per head for meeting incidental expenses to the travellers of the
following categories, proceeding to countries other than India, Bangladesh and Afghanistan on submission
of passport and ticket. This will be in addition to any other purchase of foreign exchange admissible to
them except PTEQ: -
(i) Pakistanis resident in Pakistan except those proceeding on official or business travel.
(ii) Pakistani students studying abroad (Para 5(i) ibid) excluding those going abroad on fresh permits.
(iii) Returning residents (Para 5(ii) ibid).

(iv) Foreign nationals settled/working in Pakistan (Para 7(ii)(b) ibid).
Operations Manual
(v) Foreign students studying in Pakistan (Para 7(vi) ibid).

(vi) Foreign Crews (Para 7(vii) ibid).
(vii)Employees of foreign controlled companies and their joint ventures in Pakistan for attending In-House
Seminars, Workshops, Symposia, Meetings etc. outside Pakistan.
The sale of this amount of US$ 50 will be recorded on the passport as a separate entry distinct from
any other amount of foreign exchange purchased by the traveler.
25. Exchange Quota to Government/Semi-Government Employees going on Delegations, Duty, Posting,

Leave, Retirement and Training.
Government/Semi-Government employees will be entitled to draw exchange at the prescribed rate of

daily allowance which has been fixed by the Government for the actual period they remain abroad on
official duty. In addition, an exchange quota of US$100/- per person will be allowed on private account, if
so requested by the person concerned provided he has not been allowed to draw his salary abroad.
Persons who are eligible to draw leave salary/pension in foreign exchange may, while proceeding abroad
on leave or after retirement, either draw the private travel quota or leave salary/pension as admissible
under Government rules.
26. Migration.
Persons proceeding on migration abroad will be allowed by the SBP-Banking Services Corporation a
foreign exchange quota of US$50/- per head against sponsored migration visa and US$500/- per family
against non-sponsored visa. Migrants to USA/Canada against non-sponsored visa will be allowed a
compulsory minimum quota of US$260/- per family. They may at their option also obtain additional
exchange quota up to US$500/- inclusive of the compulsory quota. Application for the purpose should be
made on the prescribed form (Appendix V-73).
27. Business Travel Abroad.
Persons proceeding abroad on business visits are allowed exchange facility at the rate of US$300/- per
day subject to a maximum of US$9,000/- per person for countries other than India and Afghanistan. For
India business travel quota is allowed @ US $40/- per day subject to a maximum of US$1,200/- per person.
28. Booking of passage/release of exchange for business visits abroad on the basis of Certificates of Trade
Organizations.
Airlines/Shipping Companies/Travel Agents and Authorized Dealers may issue tickets and release foreign
exchange at the rate specified in para 27 ibid without prior approval of the State Bank in accordance with
the following instructions in cases where business visit to countries other than Afghanistan is
recommended by the Federation of Chamber of Commerce and Industry or by a Chamber of
Commerce/Trade Organization listed in Appendix V-74: -
(i) Persons desirous of proceeding abroad on business visits under the above scheme should fill in Form
"T-2" (Appendix V-75) in triplicate and submit it to one of the Organizations mentioned in the list for
certification. Two copies of Form "T-2" will be returned to the applicants after certification and the
third copy retained by the Chamber of Commerce/Trade Organization for their own record.
(ii)On the basis of certification of Chamber of Commerce/Trade Organization, Airlines/Shipping
Companies/Travel Agents may sell passage for countries other than Afghanistan on payment of the
cost thereof by the firm/company on whose behalf the travel is being undertaken. The passport
should be endorsed as prescribed in preceding para 11 (v) (a). The airlines/travel agents will endorse
both the copies of Form "T-2", return one copy to the traveler and retain the other copy for
submission along with their monthly "Return of Passage Bookings".
(iii) Authorized Dealers may release foreign exchange, at the rates prescribed in para 27 of this chapter
for business visit to countries other than Afghanistan on submission of the duplicate copy of the "T-
2" form certified by the Chambers of Commerce/Trade Organizations, ticket, passport and CNIC.
Operations Manual
Foreign exchange should be released for the number of days recommended by the Chambers of
Commerce/Trade Organizations subject to a maximum of thirty (30) days.
The passport and ticket of the traveler should be endorsed with the amount of foreign exchange
released. "T-2" form should also be endorsed with the date and amount of foreign exchange released
and the form submitted to the SBP-Banking Services Corporation with the monthly foreign exchange
returns.
(iv) Authorized Dealers/Airlines/Shipping Companies/Travel Agents will satisfy themselves that the "T-2"
form recommended by the respective Chambers of Commerce/Trade
Organizations and produced to them for issue of tickets/release of foreign exchange are genuine and
complete in all respects. To verify the genuineness of the "T-2" form Authorized Dealers/
Airlines/Shipping Companies/Travel Agents should obtain specimen signatures of the officials
authorized by the respective Chambers of Commerce/Trade Organizations to sign the prescribed
certificate.
(v) This facility is available only to Directors/Proprietors/Working Partners and whole-time employees of
the applicant firm and not to part-time employees, advisors and non-executive partners.
(vi) Payment for the cost of ticket issued and cost of foreign exchange released will be received by the
Airlines/Travel Agents/Shipping Companies/Authorized Dealers through cheques drawn on the bank
account of the company/firm concerned.
29. Booking of passage/Release of foreign exchange to representatives of Consultancy/ Construction

companies and firms.
Airlines/Shipping Companies/Travel Agents and Authorized Dealers may issue tickets/release foreign
exchange at the rates specified in paragraph 27 without prior approval of the State Bank to the
representatives of Consultancy/Construction firms/companies whose Bid Bonds/Performance Bonds
have been accepted by foreign beneficiaries. For this purpose, such persons/firms, if they are not
members of any Chamber of Commerce and Industry or Trade Organization, will be required to fill in Form
'T-2' in triplicate and submit it to the Offices of the Trade Development Authority of Pakistan for
certification. Other instructions for issue of tickets, release of foreign exchange, admissibility of travel
facility and the mode of payment for cost of passage/exchange etc. will remain the same as prescribed in
paragraph 28 (i) to (vi) for business travel on the recommendations of the Chambers of Commerce/Trade
Organizations on Form 'T-2'. However, in case the Consultancy /Construction firm/company is a public-
sector company, passage/exchange facility will be available only with the prior approval of State Bank.
30. Release of Exchange to Pakistani exporters for participation in International Trade Fairs/Exhibitions in
Private Capacity.
Authorized Dealers may extend, subject to fulfillment of the drill prescribed herein for each category,
following facilities to Pakistani exporters for participation in International Trade Fairs/Exhibitions in their
private capacity as and when approached:
Category ‘A’ where sample goods are taken for display.

(i) Remittance of space rent direct to Fair/Exhibition authorities against their debit note and undertaking
from the exporter's firm/company on the form appearing at Appendix V-76. Remittance will be
reported on Form 'M'.
(ii) Release of exchange for construction of pavilion against estimate subject to rendition of account for
expenses incurred and undertaking on the form appearing at Appendix V-76. Remittance will be
reported on Form 'M'.
(iii) Issue of an authority letter to the airline/travel agents for issue of ticket to and from the country where
the Trade Fair/Exhibition is being held, for the representative of the firm/company on whose behalf
foreign exchange for space rent/construction of pavilion already released, not exceeding two
persons, on the form appearing at Appendix V-77 on production of documents showing confirmation
for booking of space and credit note/receipt for foreign exchange already released. This authority
letter will be retained by the airline for submission through passage statements.
Operations Manual
(iv) Release of foreign exchange on production of return ticket purchased against Authorized Dealer's
authority mentioned in preceding sub-para (iii) at the rate not exceeding Business Travel Quota for
the number of days of the fair plus another seven days for setting up stall and winding up of affairs
but not exceeding 30 days. Release of exchange will be reported on T-1 Form under this authority.
(v) Payment for the cost of ticket and foreign exchange to be released for payment of rent for stalls,
booking of space, construction of pavilion, advance deposits etc. and for the expenses of the
representative of the firm/company participating in international trade fairs/exhibitions will be
received by the Airlines/Travel Agents/ Shipping Companies and Authorized Dealers through cheques
drawn on the bank account of the firm/company concerned.
Category 'B' - Trade Fairs/Exhibitions organized by the Chambers of Commerce and Industries (of Pakistan)
or where exporter is participating in individual capacity where goods are taken for sale under Form 'E'
procedure.
(i) Remittance of Advance space rent by the Chamber of Commerce and Industry direct to Fair authorities
against Debit Note supported by (a) list of participating members with their share of space rent and
(b) undertaking in (Appendix V-76) from each member participating in the fair. Remittance will be
reported to SBP-Banking Services Corporation on Form 'M'.
(ii) Certification of Form 'E' on self-consignment basis or otherwise as recommended by the organizing
Chamber of Commerce and Industry.
(iii) Issue of an authority letter to airline/travel agent for the issue of ticket to and from the country where
the Fair is being held, for not more than two persons of the participating firm on whose behalf Form
'E' has already been certified, on Appendix V-77. This authority letter will be retained by the airline
for submission through passage statements.
(iv) Issue of authority letter to airline/travel agent for issue of tickets to the Pavilion Officer(s) nominated
by the organizing Chamber on Appendix V-77. This authority letter will be retained by the airline for
submission through passage statements.
(v) Release of foreign exchange for Duty/Sales tax to the participating members on repatriable basis as
per undertaking furnished on Form Appendix V-76. This will be reported on T-1 Form along with
Business Travel Quota.
(vi) Release of foreign exchange to the representative(s) of the participating firm/Pavilion Officer(s) on
production of return air tickets purchased against Authorized Dealer's authority mentioned in
preceding sub-paragraphs (iii) and (iv), at a rate not exceeding the Business Travel Quota for the
number of days of the Fair plus 7 days extra for setting up stall and winding up of affairs but not
exceeding 30 days. This will be reported on T-1 Form under this authority.
(vii) Issue of authority letter for re-import of unsold goods exported under Form 'E' procedure as per
preceding sub-paragraph (ii) on freight-to-pay basis. Original will be retained by the airline/shipping
company and photo-copy will be produced to Customs for release of the goods.
(viii) Payment for the cost of ticket and foreign exchange to be released for payment of rent for stalls,
booking of space, construction of pavilion, advance deposits etc. and for the expenses of the
representative(s) of the firm/company participating in international trade fairs/exhibitions will be
received by the Airlines/Travel Agents/Shipping Companies and Authorized Dealers through cheques
drawn on the bank account of the firm/company concerned.
Authorized Dealers should carefully note that in case of failure of the participants to submit evidence of
having brought back the sample goods taken for display or encashment certificate of the samples sold
and for failure to repatriate the foreign exchange released for space rent/duty etc., along with the sale
proceeds (Category B) the Authorized Dealers will report the matter to the area office of the Foreign
Exchange Operations Department of the SBP-Banking Services Corporation for suitable action. The
Authorized Dealers will also report the outstanding sale proceeds including the amount released on
account of space rent/duty etc. in their monthly overdue statement prescribed in Appendix V-20 of the
Manual with specific remarks "Exhibition case".
31. Business Travel abroad with the approval of State Bank.

Operations Manual
Persons desirous of proceeding abroad on business visits are free to approach the SBP-Banking Services
Corporation for approval of passage facility and release of exchange for such visits. Applications for this
purpose should be made to the SBP-Banking Services Corporation on Form "T" (Appendix V-78). At the
time of forwarding such applications, which should be duly completed, Authorized Dealers should ensure
that the requisite documents including a Confidential Report on the financial standing of the party are
enclosed with the application.
32. Blanket permission for business travel abroad to exporters of commodities, services etc.
(i) State Bank also issues blanket permission for purchase of ticket and release of foreign exchange for
business travel abroad to exporters of commodities, services etc. whose export earnings during the
preceding calendar year or the year immediately preceding the month of the application are Rs 2.5
million or more in the case of exporters of commodities and Rs 0.25 million or more in the case of
exporters of services like Indenting/Recruiting Agents, Construction Companies, Trade Marks and
Patent Attorneys etc.
(ii) Request for issue of blanket permission should be made to the SBP-Banking Services Corporation on
Form "BT" (Appendix V-79) in duplicate. Names of the Directors/Executives/ Officials who would
undertake business travel on behalf of the applicant firm against the blanket permission will be
specified in the application. Not more than 3 persons can be nominated at a time for this purpose.
(iii) SBP-Banking Services Corporation will issue blanket permission on the original 'BT' form, which will be
valid for a period of one year only. Only two representatives of the export houses/firms/companies
can travel at a time against the blanket permission provided both of them are not travelling in one
and the same direction and their destinations are distinctly separate. As an exception, two
representatives can travel at a time against the blanket permission in one direction and for the same
destination provided one of them is a technical representative of the firm / company and his visit is
necessary. On expiry of the blanket permission, it should be surrendered to the issuing office of the
SBP-Banking Services Corporation by the holders thereof along with one detailed achievement report
in respect of all the business trips undertaken under the blanket permission. The renewal of blanket
permission will be allowed by the SBP-Banking Services Corporation only in those cases where they
are satisfied about the bonafides of the business visits undertaken and of the concrete results
achieved by way of increased foreign exchange earnings for the country.
33. Booking of passage against blanket permission.
Airlines/Travel Agents may issue ticket for travel abroad of the persons named in the blanket permission
issued by the SBP-Banking Services Corporation. The Airlines/Travel Agents will make endorsement in
token of having issued the ticket on the blanket permission in the space provided for the purpose under
their stamp and signature. A copy of the blanket permission will be retained by the Airline/Travel Agent
which will be submitted in support of the booking reported in their monthly "Return of Passage Bookings".
The aforesaid copy of the blanket permission shall be certified by the Airlines / Travel Agents in the
following manner: -
"Payment received through Cheque No. _________________dated ___________drawn on the bank
account of firm/company concerned.
Stamp & Signature”
34. Release of Foreign Exchange against blanket permission.
Authorized Dealers may release foreign exchange at the rates prescribed in para of this chapter on the
strength of the following documents:
(i) Blanket Permission of the SBP-Banking Services Corporation.

(ii) Airline ticket.
(iii) Letter from the export house/firm/company detailing the purpose and duration of the proposed visit.
(iv) 'T-1' Form.
(v) Passport.
Operations Manual
In addition to the endorsement of foreign exchange released on the airline ticket and passport as required
under the rules, the Authorized Dealer will also make endorsement of the foreign exchange released on
the blanket permission in the space provided therein under its stamp and signature. A photo-copy of the
blanket permission, duly certified by the Authorized Dealer in the manner indicated in the preceding
paragraph, along with the letter of export house/firm/company mentioned at (iii) above, will be enclosed
while reporting the sale to the Foreign Exchange Operations Department in their monthly exchange
return.
35. Release of Foreign Exchange against Credit Cards to exporters.
Bonafide exporters can also draw exchange quota against credit card for business visits to countries other
than Afghanistan. The following procedure will be followed in this regard:
(i) Exporters desirous of availing the facility of credit card for business travel abroad, will make an
application to the concerned Authorized Dealers (Credit Card Issuing Agencies) in the form appearing
at Appendix V-80 duly certified by a Chamber of Commerce/Trade Organizations listed in Appendix
V-74. While issuing credit card, the Authorized Dealers (Credit Card Issuing Agencies) shall make the
endorsement on the face of blanket permission in the following format:
Name of Authorized Dealer (Credit Card Issuing Agency)

Credit Card No._______________________________
Issued to Mr. _________________________________
Signature __________________________
Dated _____________________
(ii) The limit up to which the persons concerned may utilize the credit card facility shall be the maximum
Business Travel Quota admissible under the rules for the time being in force less any amount of
foreign currency notes/travellers cheques issued to them in Pakistan.
(iii) When proceeding abroad on business visit, persons concerned will submit to the Authorized Dealers
(Credit Card Issuing Agencies) original blanket permission granted by the SBP-Banking Services
Corporation or T-2 form duly certified by Federation of Pakistan Chamber of Commerce &
Industry/Chamber of Commerce & Industry/ concerned Trade Organization.
(iv) All remittances made by Authorized Dealers (Credit Card Issuing Agencies) in reimbursement of
expenses incurred abroad by the holders of credit card will be reported in the monthly foreign
exchange returns by them under the code relating to business travel.
(v) If so desired by the persons concerned, initial release in the shape of either foreign currency notes or
travellers cheques can be obtained by them but only from the Authorized Dealer which has issued
the credit card and from no other Authorized Dealer. Such sales will be reported to the Foreign
Exchange Operations Department under the code relating to business travel on T-1 form with which
a photocopy of Blanket Permission/T-2 form duly endorsed by the Authorized Dealers (Credit Card
Issuing Agencies) will be attached. In the case of business travel against Blanket Permission a photo-
copy of the letter submitted by exporting firm under para 34(iii) of this chapter will also be attached
with the returns.
(vi) Subsequent remittance made by the Authorized Dealers (Credit Card Issuing Agencies) in
reimbursement of the amount utilized abroad by the credit card holders will be reported on Form 'M'
and endorsed on the photocopy of the relative Blanket Permission/T-2 form which will be attached
with Form 'M'. In the case of business travel against Blanket Permission a photocopy of the exporting
firm's letter referred to in preceding sub-para (v) will also be attached.
(vii) A photocopy of Blanket Permission/Original T-2 form bearing Authorized Dealer's (Credit Card Issuing
Agency's) endorsement regarding release of initial amount of foreign exchange as well as subsequent
remittances made by the Authorized Dealers (Credit Card Issuing Agencies) will be submitted to the
Operations Manual
Foreign Exchange Operations Department along with a monthly statement in the form appearing at
Appendix V-81.
This statement should reach the area office of the Foreign Exchange Operations Department by the
10th of the month following the month to which it relates. In the case of business travel against
Blanket Permission the original letter submitted by the exporting firm in terms of para 34(iii) of this
chapter will also be attached with the return.
(viii) Initial release/all subsequent remittances shall also be endorsed by the Authorized Dealer on original
Blanket Permission which on expiry of its validity will be surrendered to the Issuing Office in
accordance with the instructions laid down in para 32(iii) of this chapter.
36. Release of Foreign Exchange to business executives of firms/companies other than exporters against
Credit Cards.
The Credit Card facility as admissible to the bonafide exporters in terms of para 35 ibid can also be availed
of by business executives of firms/companies other than exporters provided the firm/company is paying
minimum income tax of one million rupees a year, after obtaining necessary approval from the area office
of the Foreign Exchange Operations Department on production of the following documents through their
bankers:
(i) Formal request of the firm/company for credit card facility to their executives.
(ii) Valid passports of the concerned persons together with original CNIC.
(iii) Attested copy of the latest Income Tax Assessment Order of the firm/company.
(iv) Attested copy of the receipted challan evidencing payment of Income Tax during the preceding
income year.
After obtaining SBP-Banking Services Corporation’s approval, the following procedure will be
followed:
(a) Firms/companies other than exporters will approach the concerned Authorized Dealers (Credit
Card Issuing Agencies) along with the approval letter of SBP-Banking Services Corporation and
form "T-2" duly certified by the respective Chamber of Commerce and Industry/Trade
Association. While issuing credit cards, the Authorized Dealers (Credit Card Issuing Agencies)
shall make endorsement on the face of duplicate "T-2" form and on the back of SBP-Banking
Services Corporation’s approval letter in the following format:
Name of Authorized Dealer (Credit Card Issuing Agency)
Credit Card No.........................................
Issued to Mr...........................................
against S.B.P. BSC Approval No.............................
dated.........................
Date…………...
Signature: ............................
Authorized Dealers (Credit Card Issuing Agencies) will retain a photo-stat copy of SBP-Banking
Services Corporation’s approval letter and return the original to the applicant.
(b) The limit up to which the persons concerned may utilize the credit card facility shall be the
maximum Business Travel Quota admissible under the rules for the time being in force less any
amount of foreign currency notes/travellers cheques issued to them in Pakistan.
(c) All remittances made by Authorized Dealers (Credit Card Issuing Agencies) in reimbursement of
expenses incurred abroad by the holders of credit card will be reported in the monthly foreign
exchange returns under the code relating to business travel.
(d) If so desired by the persons concerned, initial release in the shape of either foreign currency notes
or travelers cheques, can be obtained by them but only from the Authorized Dealer which has
issued the credit card and from no other Authorized Dealer. Such sales will be reported to the
Issuing Office under the code relating to business travel on "T-1" form with which a photo copy
Operations Manual
of SBP-Banking Services Corporation’s approval letter and "T-2" form duly endorsed by the
Authorized Dealers (Credit Card Issuing Agencies) will be attached.
(e) Subsequent remittances made by the Authorized Dealers (Credit Card Issuing Agencies) in
reimbursement of the amount utilized abroad by the Credit Card holders will be reported on
Form 'M' and endorsed on the photo copy of the relative 'T-2' form which will be attached with
Form 'M' along with Photostat copy of SBP-Banking Services Corporation’s approval letter.
(f) A photo copy of SBP-Banking Services Corporation’s approval letter and Duplicate "T-2" form
bearing Authorized Dealer's (Credit Card Issuing Agency's) endorsement regarding release of
initial amount of foreign exchange as well as subsequent remittances made by the Authorized
Dealer (Credit Card Issuing Agency) will be submitted to the Foreign Exchange Operations
Department along with a monthly statement in the form appearing at Appendix V-81. This
statement should reach the area office of the Foreign Exchange Operations Department by the
10th of the month following the month to which it relates.
37. Combination of two exchange facilities.
Authorized Dealers should not release foreign exchange for two different purposes at a time. In other
words, combination of two exchange facilities is not allowed.
38. Foreign Exchange facilities for studies abroad.
Authorized Dealers may remit foreign exchange to educational institutions abroad on behalf of students
desirous of studying in accredited and recognized foreign institutions/ universities up to US$ 70,000/- or
equivalent in other foreign currencies per student per calendar year on account of application/processing
charges, tuition fee, living expenses etc. in accordance with the procedure set out below:
i) Remittances related to application/processing charges for admission. In cases where students are
required to remit application/processing charges for admission in the foreign educational
institutions, Authorized Dealers may make such remittances to the concerned foreign educational
institution on production of documentary evidence to the satisfaction of the bank showing the
amount of application/processing charges. There is no restriction on the number of institutions to
which a student can apply for admission.
ii) Remittance of tuition fee, living expenses etc. The Authorized Dealers may make remittances for tuition
fee, living expenses and other dues (health, insurance, union, sports, library fees etc.) on behalf of
students desirous of studying abroad who have got admission in a foreign educational institution on
the basis of the following documents:
a) Application Form (Appendix V-82) duly filled in by the student/parent/ guardian.
b) Copies of CNIC/Form ‘B’ of the student and CNIC of the parent/guardian.
c) Copy of passport of the student.
d) Letter of admission from foreign educational institution.
e) Letter/Cost Sheet from foreign educational institution showing break-up of expenses.
iii) Remittances to the foreign educational institution or the student. Dues, including Tuition Fee, which
are payable to the foreign educational institution should be remitted directly to the account of the
educational institution via SWIFT, telegraphic transfer or demand draft and not remitted/released to
the student. Living or miscellaneous expenses as indicated by the respective foreign
institution/university, if not being remitted to the institution, can, however, be sent to the student
himself via SWIFT, telegraphic transfer or demand draft.
iv) Initial cash foreign exchange requirements. In order to meet the initial expenses related to
boarding/lodging and/or other requirements of the student, Authorized Dealers can release cash
foreign exchange equivalent to US$ 5,000/- to the student which should be endorsed on his/her
passport.
In case of foreign exchange requirements for studies abroad in excess of the above limit, the
concerned Authorized Dealer will forward the case to the Director, Foreign Exchange Operations
Department, SBP-Banking Services Corporation, Head Office, Karachi along with justification and
documentary evidence for consideration.
Operations Manual
Authorized Dealers will retain all related record including the documents submitted by the applicant
as mentioned above for on-site inspection by the State Bank’s Inspection Team.
39. Freight on Personal Baggage.
(i) Airlines and Shipping Companies are authorized to accept freight at actual in rupees on personal
baggage, whether accompanied or un-accompanied, both in respect of outward and inward journeys
originating from Pakistan and terminating abroad, or originating from abroad and terminating in
Pakistan, from travellers other than those who are covered by succeeding sub-paragraph (iii).
Airlines/Shipping Companies can also accept outward excess baggage, whether accompanied or un-
accompanied, on freight-to-pay basis without limit. However, it will be the responsibility of the
Airlines to ensure that in respect of accompanied baggage, Excess Baggage Tickets are issued at actual
weight basis and passengers are not provided with Miscellaneous Charges Orders for the purpose.
(ii) Shipping Companies/Airlines may accept payment of freight in rupees up to Rs 500 per packet in
connection with the export of gift parcels and actual freight in connection with the export of bonafide
free trade samples covered by paragraph 2 of Chapter 12. The Shipping Companies/Airlines while
reporting such collections in their monthly returns of passage and freight collections should enclose
a copy of the Airway Bill/Bill of Lading in support of the relative freight collections.
(iii) In respect of categories of travellers mentioned in sub-paragraphs (i), (ii)(a) and (iv)(a) of paragraph 7
of this chapter, Airlines/ Shipping Companies can accept freight without limit for transportation of
personal effects whether accompanied or un-accompanied on outward journey subject to the same
conditions as laid down in the said sub-paragraphs for booking of passage.
40. Release of Foreign Exchange for travel, education, medical treatment etc.
Amounts of foreign exchange in excess of the limits on payments for invisibles specified in paragraph 16
to 39 shall be released by the Authorized Dealers after prior verification of submitted documentary
evidence demonstrating that the additional amount is needed in order to make a bonafide payment for
purposes specified in the aforementioned paragraphs under advice to/with prior approval of the Foreign
Exchange Operations Department, SBP-Banking Services Corporation, Karachi, as the case may be.
41. Conversion of Unspent Balance of Rupees by Foreign Nationals.
Authorized Dealers may allow conversion into foreign exchange of the unspent amount, without any limit,
left with the foreign tourists out of proceeds of foreign exchange encashed by them in Pakistan with an
Authorized Dealer. Re-conversion facility will be provided on production of certificate (Appendix. V-9) by
the foreign tourist or on the basis of endorsement recorded on his passport by an Authorized Dealer at
the time of purchase of foreign exchange. The relative encashment certificate or copy of the relevant
pages of passport shall be submitted to the SBP-Banking Services Corporation along with the monthly
returns.
42. Endorsement on Passports and Tickets.
The amount of exchange sold by the Authorized Dealers together with the date on which the sale is made
must be recorded on the traveller’s passport under the stamp and signature of the Authorized Dealer at
the time the sale is made. The endorsement should be made on the special pages provided for the
purpose. The exchange issued should also be endorsed on the first page of ticket jacket as also back side
of the passengers’ coupon and a hole punched in the upper right-hand corner of the passengers’
air/steamer ticket. Authorized Dealers should not sell any exchange unless a person holds a ticket for
departure on a definite date and that such a date is not later than two weeks from the date on which the
exchange is issued. No exchange should be sold against tickets which do not specify the date of departure
provided that these instructions do not apply if a person is travelling by land route where only the passport
will be endorsed.
43. Form in which Exchange may be issued.
Operations Manual
(i) Exchange granted for travel purposes should be issued only in the form of travelers cheques or circular
letters of credit or in foreign currency notes or coins. It may be issued in the form of T.T. or M.T. also
or Draft but in such cases, it should be expressly provided that payment by the drawee bank shall be
made only on the personal application and identification of the traveler. When issuing travellers
cheques or circular letters of credit, the Authorized Dealers should invariably mention therein, the
place and date of issue. The travelers cheques or circular letters of credit must be signed personally
by the applicant in the presence of the Authorized Dealer. The travellers cheques issued against the
admissible PTEQ will be branded by the Authorized Dealers with a rubber stamp containing the
narration “Good for encashment outside Pakistan and in case of encashment in Pakistan, proceeds
will be paid in Pakistan rupees only.” The Authorized Dealers will maintain record of travellers
cheques sold by them in a register with the prescribed ruling (Appendix V-84).
(ii) The release of admissible PTEQ to the travellers proceeding abroad in the shape of foreign currency
notes will be restricted to US$100 only. The balance amount of admissible quota will be released in
the shape of travellers cheques duly branded with rubber stamp as stipulated in the preceding sub-
para.
44. Surrender by Travelers of Unspent Foreign Exchange.
Attention of the all persons granted foreign exchange for travel abroad should be drawn by the Authorized
Dealer to sub section (3) of Section 4 of the Act. No person who acquires foreign exchange for travel can
use it for a purpose other than for his living or travelling expenses in the country for which exchange is
issued. In the case of special allotment made by the State Bank, the exchange can be utilized only for the
purpose for which it is sanctioned. All unspent amounts of foreign exchange should be sold to an
Authorized Dealer by the traveler immediately on his return to Pakistan. If so desired by the person
concerned, the amount of foreign exchange thus surrendered may be endorsed on his/her passport.
45. Exchange for Hajj.
The Government of Pakistan announces each year the scale on which foreign exchange will be released
to intending pilgrims to Saudi Arabia. Foreign exchange may be released by the designated Authorized
Dealers to intending pilgrims in the form and on the scales and in accordance with the special instructions
and conditions laid down by the Government for different categories of pilgrims.
45A. Remittances by Authorized Dealers on behalf of Hajj Group Organizers for Hajj.
(i) 2Authorized Dealers may remit foreign exchange on behalf of the Hajj Group Organizers (HGOs) having
been allocated quota by the Ministry of Religious Affairs & Interfaith Harmony (MoRA) under the
Private Hajj Scheme for respective Hajj season subject to terms and conditions mentioned below.
Authorized Dealers may obtain list of enlisted HGOs along with allocated quota in respect of each
HGO from MoRA.
Authorized Dealers, on being approached, shall either open a PKR Account in the name of concerned
HGO with suffix “Hajj” or use the previously opened similar account specifically for the purpose of
Hajj related remittances to Saudi Arabia subject to the following:
a) While opening/activating and operating these accounts, Authorized Dealers shall strictly follow SBP’s
AML/KYC guidelines and ensure compliance of all related rules and regulations issued from time to
time. They shall obtain all necessary documents from the concerned HGO.
b) For the purpose of effecting Hajj related remittances to Saudi Arabia, each HGO is permitted to
maintain only one account with the Authorized Dealer of its choice. In this respect, Authorized Dealer
shall obtain an undertaking from the HGO that it is not maintaining such account with any of the
other Authorized Dealers or any other branch of the same Authorized Dealer for this purpose.
(ii) With respect to the operations of the designated accounts of HGOs in Pakistan, the Authorized Dealers
will ensure that permissible deposits shall only be the PKR funds received from intending pilgrims by
the HGOs. The Authorized Dealers shall obtain the list of intending pilgrims from concerned HGOs
containing at least the below-mentioned details:
a) Name, address and contact details.
Operations Manual
b) Passport No. &

c) HGO Hajj Package opted (Amount of Hajj Packages).
(iii) Authorized Dealers shall allow remittances into HGO’s account maintained with a specified Saudi bank
against the PKR funds collected by HGOs in terms of sub-para (ii) above. However, in case where an
HGO has not been able to open/operate account in Saudi Riyal with a Saudi bank, the remittances
may be allowed directly to vendors/service providers in Saudi Arabia through FDD/TT/SWIFT. In this
context, Authorized Dealers must ensure the following:
a) The remittances shall only be made for meeting expenses related to housing, Maktab, catering,
transportation, guides, subsistence requirements and charges of the Ministry of Hajj in respect
of intending pilgrims performing Hajj from the quota allocated to the concerned HGO against
authenticated underlying contracts with service providers in Saudi Arabia and submission of
following information/documents by the respective HGOs:
(aa) Detail of Hajj Package bifurcating local and foreign expenses per pilgrim.
(bb) Quota Allocation letter by MoRA for respective Hajj season.
(cc) Invoice(s) issued by Saudi vendors in favor of which remittance is being made or FDD is being
issued. However, in case final invoices are not available with the HGOs, the Authorized
Dealers will ensure submission of related invoices etc. after finalization of the contracts and
will allow remittances after due diligence of contracts.
b) The HGOs shall provide per pilgrim per service foreign exchange requirements to Authorized
Dealers for the services mentioned at (a) above in terms of related package. Authorized Dealers
shall make remittances for such services after due verification keeping in view the total quota
allocated to the concerned HGO under the Private Hajj Scheme for the concerned Hajj season.
However, in any case, total remittances per pilgrim into account of HGO/direct payments to
vendors in Saudi Arabia should not exceed 80% of the Hajj Package being offered to the individual
pilgrim.
c) In case aggregate remittance against all services by an HGO on any given day exceeds US$ 100,000/-
, the concerned HGO will approach Exchange Policy Department, State Bank of Pakistan, Karachi
along with related details and Form ‘M’ through the concerned Authorized Dealer for prior
approval.
d) Head/Principal Offices of Authorized Dealers shall submit consolidated report in respect of
remittance transactions to the State Bank executed on behalf of HGOs on monthly basis as per
the attached format at the email ID: hajj.epd@sbp.org.pk. Further, Authorized Dealers shall
maintain complete record of these transactions for SBP’s inspection.
e) It is mandatory for HGOs to repatriate the un-utilized amount to their designated bank accounts
in Pakistan after completion of Hajj season. The respective Authorized Dealer shall ensure
compliance of the same. Further, HGOs shall have the option to withdraw or transfer remaining
PKR funds from these accounts to any other PKR account in Pakistan.
(iv) Further, in order to facilitate the HGOs to make arrangements of Maktab, housing, catering,
transportation, guides, etc. in Saudi Arabia, Authorized Dealers may make advance remittances on
behalf of HGOs up to 30% of the Hajj Package being offered by them to the individual pilgrims. The
remittances will be made on submission of the following information/documents by the respective
HGOs:
(a) Authenticated underlying contract with Saudi vendor/service provider.
(b) Details of Hajj Package bifurcating projected local and foreign expenses per pilgrim.
(c) Quota Allocation letter by the Ministry of Religious Affairs & Interfaith Harmony for previous Hajj
season.
(d) Undertaking from concerned HGO for repatriation of funds in case of non-performance.
(e) Invoice(s) issued by Saudi vendors/service providers in favor of which advance remittance is being
made. However, in case final invoices are not available with the HGOs at the time of remittance,
the Authorized Dealers will ensure receipt of related invoices subsequently.
Operations Manual
v) While processing advance remittance request, the Authorized Dealer will take all possible measures to
verify the bonafides and genuineness of the transaction. In case of nonperformance of contract for
any reason, the Authorized Dealer and HGO will ensure repatriation of advance payment before
completion of respective Hajj season.
vi) In the case of repatriation of advance payment, exchange gain, if any, will not be passed on to the
HGO, rather the same will be deposited in favor of State Bank of Pakistan through Demand
Draft/Payment Order with the Director, Foreign Exchange Operations Department, SBP-Banking
Services Corporation, Head Office, Karachi along with calculation/working sheet. To this effect, the
Authorized Dealer should get consent/agreement signed by the concerned HGO at the time of
effecting remittance.
46. Remittances for maintenance expenses of the families of Pakistanis living abroad temporarily.
State Bank considers requests for allowing remittances in foreign exchange on account of living expenses
of families of Pakistani nationals living abroad temporarily for some genuine personal reasons and whose
cases are not covered by para 23 and 38 of this chapter provided the following documents are submitted:
-
(i) Application from Pakistan national resident in Pakistan indicating the purpose for which the family went
abroad and the reason for its continued residence abroad and the probable period of stay abroad.
(ii) A certificate from Pakistan Embassy/High Commission in the concerned country confirming the reason
of stay abroad of the family, expected period of stay, the number of persons in the family and the
amount required per month for maintenance. The certificate should confirm that the concerned
persons hold Pakistani passports.
47. Back to back Remittance.
Authorized Dealers may issue foreign currency travelers’ cheques to foreign nationals and Pakistani
nationals (residents and non-residents) up to the limit prescribed under para 10(ii) Chapter 18 of the
Foreign Exchange Manual (Ninth Edition) against surrendering of an equivalent amount of foreign
exchange in cash.
Operations Manual
ANNEXURE G
Proceeds Realization Certificate
Operations Manual
ANNEXURE H
Shipment Receipt
a. White Copy
Operations Manual
b. Pink Copy
Operations Manual
c. Yellow Copy
Operations Manual
d. Yellow Copy
Operations Manual
ANNEXURE I
Authority Letter for Collection of USD
Operations Manual
ANNEXURE J
Swift Message
Operations Manual
ANNEXURE K
Cover Against Outward Remittance of USD
Operations Manual
ANNEXURE L
Authority Letter for Delivery
Operations Manual
ANNEXURE M
Deposit of Foreign Currency Notes
Operations Manual
Operations Manual
ANNEXURE N
Memo for Transfer from FEC to FEB
Operations Manual
ANNEXURE O
Memo for Transfer from FEB to FEC
Operations Manual
ANNEXURE P
STATEMENT S – 6
Operations Manual
ANNEXURE Q
Cash Withdraw Customer (System Screen)
Operations Manual
ANNEXURE R
Record Retention Template
Document Classificat ion Ret ent ion Period

Regulat ory St orage Media
S. No. Document Name (Permanent / Crit ical/ Non- Perpet ual/(Crit ical 5+5)
(Yes/No) (Phy sical/Sy st em/Bot h)
Crit ical) /Non Crit ical (3 Years)
Cheques & deposit v ouchers critical y es Phy sical Critical 5+ 5

1
CIT Shipm ent adv ice Critical Yes Both Critical 5+ 5

2
Purchase from SBP / Other Banks Critical Yes Phy sical Critical 5+ 5
3
Deposit to SBP critical y es Phy sical Critical 5+ 5

4
Sale & purchase file from Branches critical y es Phy sical Critical 5+ 5
5
Daily Denom ination FCY currency File Non-critical Yes Phy sical Non-critical
6
Daily Rate sheet File Non-critical Yes Phy sical Non-critical

7
Operations Manual
ANNEXURE S
Reference of Documents Used
S.No. Document Reference Date Subject

July 25, Withdrawal of MT 202 Processing from
1. Circular no. P/INST/2016/139
2016 Branches
August Discontinuation of Submission of Monthly
2. Circular no. P/INST/2017/159
21, 2017 Foreign Exchange Returns to SBP-BSC
Acceptance of Cut, Soiled, and
January
3. Circular no. P/INST/3764 Outdated/Out of Circulation Foreign
16, 2015
Currency Notes
Operations Manual
ANNEXURE T
Amendment Recording Sheet
S. No. Circular Number Date Subject Effective Date

Cash Handling FE

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cash Handling FE

Uploaded by

Copyright:

Available Formats

FOREIGN EXCHANGE

Branch Operations & Account Services

1. INTRODUCTION .............................................................................................................. 1-1

2. PERSONNEL INVOLVED IN CASH HANDLING - BRANCH .............................................................. 2-1

3. START OF DAY PROCEDURES .............................................................................................. 3-1

4. CASH RECEIPTS AND PAYMENTS- OVERVIEW .......................................................................... 4-1

8. CASH PAYMENTS............................................................................................................. 8-1

9. CASH TRANSFER DURING THE DAY ....................................................................................... 9-1

10. Sale to PUBLIC (SALE OF FCY) ............................................................................................ 10-1

11. TRANSACTIONS WITH PUBLIC (PURCHASE OF FCY) .................................................................. 11-1

12. FEEDING OF FOREIGN CURRENCY TO BRANCHES ................................................................... 12-1

13. RECEIPT OF FORIGN CURRENCY FROM BRANCHES ................................................................. 13-1

14. ACQUISITION OF FOREIGN CURRENCY FROM OTHER BRANCHES ............................................... 14-1

15. ACQUSIITON OF FOREIGN CURRENCY FROM OTHER BANKS ..................................................... 15-1

15.5 Letter to Other Bank ..................................................................................................................................... 15-1

17. SELLING OF FOREIGN CURRENCY TO OTHER BANKS ................................................................. 17-1

20. FEEDING OF FOREIGN CURRENCY TO FOREIGN EXCHANGE BRANCH ........................................... 20-1

22. REPORTING OF STATE BANK OF PAKISTAN ........................................................................... 22-1

23. END OF DAY PROCEDURES ............................................................................................... 23-1

24. SAFETY OF CASH – SECURITY CONSIDERATIONS AT THE BRANCH ............................................... 24-1

25. INSURANCE OF CASH ...................................................................................................... 25-1

27. SURPRISE CASH INSPECTION ............................................................................................ 27-1

29. ADDENDUM................................................................................................................. 29-1

30. ANNEXURES ................................................................................................................. 30-1

ANNEXURE B ....................................................................................................................... 30-2

ANNEXURE C ....................................................................................................................... 30-3

ANNEXURE D ....................................................................................................................... 30-4

ANNEXURE E ....................................................................................................................... 30-6

ANNEXURE G ...................................................................................................................... 30-27

ANNEXURE H ..................................................................................................................... 30-28

ANNEXURE I ...................................................................................................................... 30-32

ANNEXURE J ...................................................................................................................... 30-33

ANNEXURE K ..................................................................................................................... 30-34

ANNEXURE L...................................................................................................................... 30-35

ANNEXURE M .................................................................................................................... 30-36

ANNEXURE N ..................................................................................................................... 30-38

ANNEXURE O ..................................................................................................................... 30-39

ANNEXURE P ..................................................................................................................... 30-40

ANNEXURE Q ...................................................................................................................... 30-41

ANNEXURE R ..................................................................................................................... 30-42

ANNEXURE S ..................................................................................................................... 30-43

ANNEXURE T ..................................................................................................................... 30-44

The Bank to engage in Transactions within the Scope of its Authorization

Purchase from other Banks and Exchange Companies

Foreign Currency Notes

2. PERSONNEL INVOLVED IN CASH HANDLING - BRANCH

2.1 Responsibilities of Junior Supervisor/ Manager Teller Service (MTS)

2.2 Responsibilities of Branch Operations Manager (BOM)

2.3 Responsibilities of Teller

a. Receiving/ Depositing Cash from/ with MTS on a daily basis.

3. START OF DAY PROCEDURES

a. Digital Security System (where available)

a) Digital Security System

3.1.6 Security System of the vault is deactivated through password.

GL Code Description Debit Credit

Two Men Branches

3.2 Withdrawing Cash from Cash Safe

3.2.2 The specimen of Cash Register can be found in Annexure B:

3.2.3 MTS is the Custodian of the Cash Register.

3.3 Transfer of Cash to Tellers at Start of Day

3.4 Opening of Cash Counters

4. CASH RECEIPTS AND PAYMENTS- OVERVIEW

▪ 595 for posting Credit

5. Data Capturing of HBL Account Holder / Walk-In Customer