1. Banking Operations
Day-1 session-1
Introduction

2. General overview- Accounts Department
 Maintenance of government accounts
 Financial statements
 Budget

3. Operational activities at Banking
Department
Banker to the government
 SBP BSC acts as a banker to Federal and Provincial
governments under its obligatory requirements under clause
17 & 21 of SBP Act 1956 & SBPBSC Ordinance 2001.
 Government transactions are carried out in terms of the
agreement entered into with the Governments
 At places, where there are no offices of the SBP BSC (Bank),
Government work is conducted by branches of the National
Bank
Banker to the banks

4. Banker to the Government
 Collection of government revenues
 Government payments
 Remittances facility
 Acceptance of securities/valuable articles

5.  SBPBSC maintains the Principal Accounts of Central
as well as provincial Governments
 It has put in place a well structured arrangement for
revenue collection as well as payments on behalf of
Government across the country.
 A network comprising the Public Accounts
Departments and branches of Agency Bank carry out
the Govt. transactions

6. Banker to the Banks
 Maintenance of current accounts
 Remittances facilities
 Safe Deposits

7. Main functions of the Govt. Accounts
Division
7
• Managing/monitoring/consolidation & reporting of accounts
• Monitoring of debtor balances
• Inter government adjustments
• Allocations to districts
• Charging of mark up on debit balances
• Imposing penalty on NBP for late deposit of remittance
• Payment of commission to NBP

8. HOW WE PERFORM GOVT BANKING
BUSINESS
8
The banking business of the govt. is performed
by the bank through its HOK, FILED OFFICES
and NATIONAL BANK OF PAKISTAN as its
agent.
As Accounts of the Government with the Bank are
maintained by the Govt. Accounts unit we act as
a general Clearing House for the adjustment of
transactions between different Governments

9. 9
ACCOUNTS
DEPARTMENT,BSC
Inter Govt Adjustments at
Accounts HOK
NBP
SBP,BSC
Branches
Provincial Balances
to Prov. Govts.
THINSHEET
Entire Balances to
Finance Deptt. SBP
Adjustment, Creation,
Retirement-Final
Balance of C-I by
Finance SBP
Internal/External
Stakeholders
Consolidation of Figures---Flow of
Data

10. Types of Government payments
 Salaries of Government Departments
 Income Tax Refund
 SSC/DSC
 Prize Bond (P. Money/Encashment)
 Postmaster Assignment
 Assignment Accounts (Military)
 Military
 AGPR-Sub Offices
 AGPR-Islamabad
 SEN.SECTT.TV
 National Assembly T.V
 NBP Assignment central/provincial
 Nat'l Savings Org.
 Central Misc.
 Military Pension

11. Major Heads
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Central-I Provincial-I
Central-II Provincial-II
Central-III Provincial-III
Central- VIII Provincial-IV
Central -XI
Central -XVII
Central -XVIII

12. Arrangements with govt
 Excess cash balances
 Ways and means limit
 Breach of limit
 Next day finalization of balances

13. NBP as an agent
 NBP is working as Agent of SBP
 NBP Branches has been divided in to A,B,C categories
with respect to distance
 ‘A’ categories branches Report through relevant offices
of BSC
 B & C categories Branches Report to Govt, Account
Division BSC HOK through NBP Head Office
 Govt, Account Division at HOK compiled the figures of
Receipt and Payment make reimbursement to NBP
 Commission is paid to NBP on yearly basis (1st April to
31st March) @ 0.12% i.e. 12 Rupees for every 10,000/
Rupees
 No physical cash involved