The stage is set for black marketing of new currency notes two days ahead of Eidul Fitr despite the State Bank of Pakistan’s (SBP) strict rules and regulation to put the illegal practice in check, Pakistan Today has learnt.
The illegal practice rears its ugly heads as demand of new crispy currency notes of Rs 10, 20, 50, 100, 500, 1,000 and 5,000 denominations jacks up due to people’ whopping tendency to get them to distribute to dear ones, especially children. The sale of bundles of new currency notes on exorbitant charges is now picking momentum at Fane Road near the SBP Building and it is a routine that the SBP issued alarm to take stern action against those involved in whopping black marketing. Neither in the past nor now the status quo is broken and business of black marketing of new and crispy currency notes is still rampant with impunity. A majority of people said that local traders with connivance of some bank officials were hoarding new currency notes and selling them on higher rates. Sources in a local branch of the bank, seeking anonymity, said that the SBP had supplied a huge number of new currency notes of various denominations but bank authorities instead of distributing them among the public and account holders were selling them to brokers. Women are mostly involved in this business at Fane Road. They position themselves at different points in surroundings of the SBP containing packs of new currency notes in their hands. New currency notes of Rs 500 and 1,000 are also available in their bags. Pack of Rs 5, carrying 100 notes, are overcharged at Rs 100, packet of Rs 10, carrying 100 notes, are overcharged at Rs 125 to 150.While Rs 150 to 200 are charged on a pack of Rs 100, carrying 100 notes. Rates go even more high only one or two days ahead of Eid. Some money changers have also assigned their employees to offer bundles of new currency notes on different rates. Some people have set-off frequenting different markets and shopping centres to provide on spot delivery of packets of new notes. People buy bundles of new currency notes from cheaters to save time rather than standing in long queues in banks. Reason behind the surge of their business is unavailability of new currency notes before Eid in banks.
Raja Ramzan, a purchaser of new currency notes at a commercial bank, told Pakistan Today that new notes’ charm among the people at Eid was everlasting. Everyone loved to have new notes to give Eidi to dear ones as a part of a deep-rooted tradition on the gala day. Taking advantage of people’s fondness in new notes, black-marketers fleece citizens. Rashid Ali, another customer at a bank, said that he was going empty handed, as bank officials refused to give a packet of Rs 10 notes excusing that supply of packets was exhausted and new supply would soon come. He blamed the lower staff to high-ups of various banks for joining the bandwagon of black marketing. Rashid said that the SBP allowed only one pack of new currency notes of any value to be issued against a computerised national identity card. “But staff of private banks is involved in black-marketing the new notes,” he added.
“For issuance of new currency notes pack or bundle, ID cards from various people are collected and then kept in the record to issue new notes. Then these notes are black-marketed to earn different types of rewards in return,” he added. Nasir Khan, an official of a government bank, said that since a large number of branches of commercial banks were designated for issuance of new currency notes to the general public, the bank staff was involved in the illegal business. He said that serial and numbers of fresh currency notes were also recorded for monitoring their proper distribution and checking their use by currency brokers and garland makers.
Nasir said that it was the responsibility of law enforcement agencies to stop the sale of fresh currency notes outside banks. He said that the SBP had laid out the procedure of issuance of currency notes that a person having one national identity card could get only one bundle of any fresh currency notes but banks having one letter head could get hold of two copies of fresh currency notes. The banker said that the central bank had issued over Rs 66.95 billion from August 6 to 24 in different denominations. “The SBP has devised a mechanism to penalise those banks that are found to be involved in any irregularity relating the issuance of currency notes. It is pertinent to mention that during last Ramadan, Rs 20.250 million were recovered from those commercial banks, which violated SBP’s instructions regarding issuance of currency notes,” he added.
