State Bank of Pakistan (SBP) on Wednesday issued guidelines on standardization of layout and security features of payment orders (POs) and demand drafts (DDs) in a move aimed at addressing the risk of fraud and forgery in POs and DDs.
The guidelines mandate the use of “Minimum Security Features” in the paper used in printing of POs and DDs comprising watermark, anti-forgery ink, ultraviolet fibers etc. In the area of layout, magnetic ink character recognition (MICR) line, name of drawee bank branch (in case of DD) and maintenance of purchaser’s record by the respective bank branch have been introduced among other measures.
To facilitate customers, banks/MFBs have been advised to devise a centralized mechanism for the verification of genuineness of POs and DDs.
In this regard, Banks are required to Set up 24/7 helpdesks or call centers, so that the person in possession of instruments is easily able to verify the genuineness of the instrument. Bank branch shall validate the genuineness of PO / DD if the holder of an instrument approaches in person to any branch offering online banking services. Banks are also required to arrange proper training of staff to examine and verify the genuineness of PO and DD.
SBP last year issued instructions for standardization of security features and layout of cheques. Now by standardizing POs and DDs, almost 96 per cent of total financial instruments in clearing process will be standardized resulting in uniformity and increased efficiency in the process as well as facilitation of general public using them.
All the banks and MFBs have been advised to issue POs and DDs as per the new standard with effect from April 1, 2016.
This article gives us more useful information.
Comments are closed.