Banking operations Day-3 session-3

Remittances

Power of Attorney• A Power of Attorney is a legal document that gives

someone else the right to act on your behalf• The term “attorney” refers to the person or persons

you have chosen to act on your behalf.• Properly stamped• Properly executed • Clear not ambiguous (to supervise & deal) • Unconditional (conditional revocation in case of cease

of employment )conditional revocation leads to legal/operational risk

Power of Attorney Importance

• Revocation in newspaper

• limited powers to donor

• Donors POA/board resolution

• Expiry

• Fresh power of attorney change of ownership

SBP Remittances Scheme

• For facilitating the movement of funds on behalf of Banks, Govt. institutions and own employees from one place to another place in Pakistan.

Types

1. Online Transfers (O.T. previously TT)2. Government Drafts (G. D)3. Bank Drafts (B.D.)4. MT

ONLINE TRANSFER (TELEGRAPHIC TRANSFER)

Who is entitled• A scheduled bank• Micro Finance Bank• maintaining account with SBP BSCRequest accompanied by cheque

Online transfer…..

• Application is on prescribed form• All particulars are properly filled in• Scrutiny of cheque• Debiting of account• Process of transaction• Authorization • Amount will be credited in the account of the

beneficiary bank.• Commission @1000 per transaction

Transfer of govt funds

• SBP BSC –SBP BSC• SBP BSC-NBP• NBP-NBP• NBP-TREASURY

Government DraftISSUANCE AGAINST CASH ,ON BSC OFFICES• Written request on prescribed form• Purpose of remittance• Signature verification and scrutiny of the application • Affixing ACCEPT CASH Stamp on application• Duly stamped CASH RECEIVED by cash division • Up-dation in the system• Authorization • Printing• The serial running number to drafts will be allotted 67/1...• Signature

Govt.Draft cont...

Issuance of draft on NBP• GD issued on NBP is in same way like GD issued on SBP

BSC offices.• only difference is that in case of issuance on BSC office

credit is afforded to that office. Where as in case of issuance on NBP credit is afforded to BSC HOK.

• Advice to be issued• NBP Branches make payments on the basis of advice

received from BSC Office • Submit paid drafts to BSCHOK through their Head Office• Our HOK after verifying the genuineness reimburse the

amount to NBP

Govt. Drafts Encashment

The draft is properly issued, viz:• It is dated and has not become stale;• It has been drawn on the office of the Bank at which it has been presented;• The amounts in words and figures agree;• It bears the serial issue number in addition to the printed number;• It has been signed by an officer of the issuing office who has been

authorized to sign such drafts;• There is no notice given to the Bank stopping payment of the draft;• A discharge receipt is given on its back by the payee whose identity should

be established to the satisfaction of the passing officer.• the payee’s banker who should certify that the amount will be placed to

the payee’s credit on realization • Matching particulars with system

Revalidation of GD/BD

• GD/BD are valid for six months and requires revalidation after six months

• GD/BD not paid before the end of the third accounting year, after that, in which they are issued shall be treated as cancelled

• Such drafts are not revalidated• Presenter is directed to approach the remitter for issuance of new

draft• New draft is issued on the production of NPC from the drawee

office .• Duplicate must be drawn in exactly in the same terms as the

original instrument

Issuance of duplicate GD

• No need for fresh application• Duplicate is issued only to the applicant or the

payee or to the legal representative of either• If lost draft has been endorsed to payees banker

then then endorsee must apply through the original payee

• Duplicate draft should not be issued without NPC from drawee office.

• Duplicate must be drawn in exactly in the same terms as the original instrument

• If the period of currency of the lost draft has expired, the duplicate issued in lieu of the lost one should be revalidated

Issuance of Duplicate BD

• Duplicate Bank draft will be issued to person not other then who apply for the original

• A letter of indemnity• Indemnity should be signed by the purchaser and ordinarily by two sureties

each good for the amount of the draft• Letter of indemnity should be stamped as an agreement in accordance with

the stamp act of the province• When ever duplicate draft is issued the word "Duplicate issued in lieu of draft

No….dated…..should be prominently subscribed in red ink under the signature of the issuing officer

• Completed letter of indemnity should be retained on record at the issuing office under the personal custody of officer-in-charge

Payment Order Account

• All local payments, on behalf of the Bank either to the service providers or bank’s own employees are required to be made by means of payment orders.

• The Payment Orders Account maintained in the Globus Banking System is credited by debit to the relevant head of account.

• Duplicate payment orders will be issued after obtaining Indemnity Bond and Rs. 200/ will be charged and credited to 591004…(Miscellaneous Income)

• PO needs revalidation after six months