The document discusses the procedures for opening and operating current accounts at the Deposit Accounts Unit of the State Bank of Pakistan Banking Services Corporation (SBP-BSC). It outlines the key documents and information required to open an account, including documents establishing the applicant's legal status, board resolution authorizing the account, and specimen signatures of authorized signatories. It also describes the process of account opening approval and setup in the bank's system. The document then discusses post-opening account activities like cheque issuance, deposits, clearinghouse operations, and potential issues like deficiencies in documentation, passing errors, and contract maturity failures. It emphasizes vigilance, separation of duties, and monitoring controls to mitigate operational risks.

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2. SBP
Opening and Operations of
Current Account in Deposit
Accounts Unit
Presented By:
Palwasha Amir
Hafsa Hassan
Banking Services
Corporation

3. After partition, to eliminate the role of
Reserve Bank of India into Pakistan, SBP
was established on July 1, 1948 in Karachi
as a statutory company by Mr. Jinnah as a
result of “SBP order 1948”, amended in
1955.
Issuance of first Pakistani notes of Rs, 5, 10
& 100 on October, 1948.
On April 18, 1956, SBP act 1956 was passed
to enhance e functioning of SBP.
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SBP-BSC was established as a wholly owned
subsidiary of State Bank of Pakistan and started
functions on January 2, 2002 under the Banking
Services Corporation Ordinance 2001.
 State Bank of Pakistan Banking Services Corporation
SBP-BSC is an operational arm of State Bank of
Pakistan.
SBP-BSC has 16 field offices in the whole Pakistan.
Issuing offices of SBP-BSC are Lahore, Karachi,
Peshawar and Quetta. 4

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Banking Division consists of two units:
Banking
Division
Public Account Unit
Public Account Receipt
Unit
Public Account
Payment Unit
Deposit Account unit
Role of Public Account Unit
 Dealing with the receipts &
payments of Government sector
 Government Account
maintenance & transferring of
funds on transactions

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It is the major unit of Banking Division. Its main scope includes:
•Maintaining Accounts of Commercial Banks
Remittances are transferred from DAU
Remittances of all commercial banks
Government Remittances are also Dealt here
Employee remittances
Clean Cash

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Under Current Account Section of DAU, the current accounts
of Scheduled Banks, Non Scheduled Banks, Local Bodies, and
Foreign Governments & Foreign Institutions are opened,
maintained and regularly monitored.
Penalties are also recovered by this section.

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 Original Certificate of Incorporation
 Original copy of Memorandum & Articles of Association
 Original Certificate of Commencement of Business by SECP
 Copy of Resolution of Board of Directors regulating the opening & conduct of the account.
 Power of Attorney authorizing official to open & operate current account
 Duly Attested three specimen Signature Cards of authorized officers
 Undertaking in form BKG 121 to mitigate the financial risk.
Soon after all the documents in relation to the opening of
current accounts are received they will be properly
scrutinized & examined in order in all respects .

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 The Power of Attorney will be registered in Form No. Bkg. 35 in the POA Register
 The donor should have the power of substitution
 Power delegated by the donor should not go beyond the scope of his own powers
 It must be unconditional.
 Three specimen signatures of the authorized signatories
 Form No. Bkg. 204
 Attestation by an official already an authorized signatory to the bank
 Verification by the ACM of DAU.

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 After all the relative documents have been properly scrutinized, the application
form together with the documents will be put up to the ACM DAU.
 After satisfying himself, the ACM will put them to IMU (internal monitoring
Unit) for inspection.
 After inspection, they are returned to DAU, and then are forwarded through
DCM Banking to the Chief Manager for approval.
 After the Chief Manager’s approval for opening the account have been
obtained, ACM DAU will e-mail through SPU (system procedure unit) to Globus
help desk for opening of current account in the name of the concerned applicant in
the system.

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Cheque books are issued to the account holders on receipt of requisition slips. Before issuing fresh
cheque books, the following checks will be applied to the requisition slips:-
 That the slip bears the serial numbers of the previous cheque book issued.
 The signature appearing on the requisition slip is that of an authorized signatory (ies) to account
The pay-in- slips are supplied by the Deposit Account Unit to the account
holders free of cost to deposit their money in current account.
Types of Pay-in-slips
 Cash Pay-in-slips
 Transfer Pay-in-Slip
 Telegraphic Transfer Slip

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 History of Clearing House
 NIFT
 Bank-wise statements are sent by the NIFT to the DAU
Karachi office for debiting and crediting the accounts of the
banks
 Now, The SBP BSC (Bank) offices supervise the working of
NIFT only.

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Deficiencies Mitigation
a) Donor has no substitution clause
b) Conflict in Power of Attorney
c) Conditional Power of Attorney
Proper study of case
Documents must be attested
IMU’s Audit
Study of case by DCM Banking
POA Registered/Account Opened
Power of Attorney with Monetary Limit
Monetary limit of POA is mentioned on
Specimen Signature Card of an official
Time Bound Power of Attorney On such type of attorneys, “valid till this
date” will be mentioned on SS Card 13

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Deficiencies Mitigation
Passing:
In passing, banks can go in
overdraft
All time one official performs
passing of cheque on one balance
sheet.
Bank to Bank Transfer:
SBP BSC bank official may
wrongly credit or debit the
account of the scheduled bank
Careful Passing
Inputter should be vigilant
Extra vigilance by authorizer
Matching balance of Current
Account excel sheet with system
generated sheet on the same day.

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Deficiencies Mitigation
Telegraphic Transfer: If wrong debit or
credit is inputted in T.T, there is no
chance of reversal as inter company is
involved.
Extra vigilance
T.T is inputted by an OG-2 level official
it is authorized by an ACM of DAU.
Contract Maturities: Contract maturities
are the repayments of loans. The risk
involved is that auto debit is done by
system and if funds are insufficient in
account then bank can go in overdraft
Email on daily basis for 3 days
maturities by DFD.
Monitoring by DAU,
Fund arrangement.
Penalty: 1.5 times of reverse repo.

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The prime focus of the project is on the
procedure of Account Opening And its
Operations with reference to Scheduled
Banks, Local Bodies and NBFIs & to find out
the flaws that we have already discussed &
proposed mitigations accordingly.

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