The central bank has made it mandatory for the exporters and banks to submit the original duplicate copy of the EE-1 statement to verifying SBP BSC office. The move is aimed at further streamlining the process of on-site verification of relevant documents on the basis of which transfer of limit and performance is allowed from one SBP BSC office/bank to another SBP BSC office/bank.
Also, the regulator has decided that the reserve maintenance week would start from Friday and end on following Thursday for the purpose of maintaining Cash Reserve Requirements (CRR) in Cash Reserve Account-CRA (US$) and Special Cash Reserve Account-SCRA (US$) against deposits raised under FE circular 25 of 1998.
Further, the central bank also notified the banks and development finance institutions (DFIs) that for the purpose of maintaining Statutory Liquidity Requirements (SLRs) and CRRs during the week starting from Friday and ending on following Thursday, Time and Demand Liabilities (TDL) as of close of business on previous Friday (i.e. with lag of one week) will be taken into account.
NOC issuing SBP BSC Office would be responsible for conducting on-site verification of EE-1 statement and relevant documents during on-site verification of the bank even if no loan has been availed by the exporter at that office/bank. Any violation observed therein will be communicated to the NOC receiving office, in order to charge fine(s) for violation(s) under the provision of Export Finance Scheme (EFS).
On-site verification of documents against EE-1/EF-1 statements will also be carried out at bank(s) who issued NOC in favour of other banks within one centre for the purpose of transfer of exporters’ limit Another circular, DMMD Circular No. 22, said: “It has been decided that for the purpose of maintaining CRR in Cash Reserve Account-CRA (US$) and Special Cash Reserve Account-SCRA (US$) against deposits raised under FE circular 25 of 1998, the reserve maintenance week will start from Friday and end on following Thursday”.
If New York Federal Reserve Bank is closed on Friday (i.e. first day of reserve maintenance week), the balances in CRA and SCRA as of previous day will be used for closed days also. Adding that the above instructions would take effect from 18th November, which means during the week starting from 18th November and ending on 24th November, FE-25 deposits as of 11th November 2011 would be used for maintaining balances in CRA and SCRA.
SBP tightens and revises regulations on exports
