Вы находитесь на странице: 1из 57

We would like to thank our coordinator “Mr.

Muhammad Rehan”
who was always there to help and guide us when we needed help. His perceptive
criticism kept us working to make this project more full proof. We are thankful to
him for his encouraging and valuable support. Working under him was an
extremely knowledgeable and enriching experience for us. We are very thankful to
him for all the value addition and enhancement done to us.

No words can adequately express my overriding debt of gratitude to my


parents whose support helps me in all the way. Above all I shall thank my friends
who constantly encouraged and blessed me so as to enable me to do this work
successfully.

Page 1 of 57
First of all I would like to thank that great entity that helped us to get
through this report safely, the one who was always there when no one was!

SHUKER- ALL- HUMDULILLAH!

Would that I have words to pay tribute to our loving parents and teachers
whose invaluable prays salutary admire and embodying attitude kept our
spirit alive to strive for knowledge and integrity which enable us to reach
milestone.
We would also like to express enormous gratitude to our respectable teacher
“Mr. Muhammad Rehan” for providing the direction for this project and for
helping us in refining our effort and ideas.
I also acknowledge the help and pleasant gathering of all our class fellows. I
am also thankful to all of those people who helped us in accomplishing our
project.

Page 2 of 57
Deposit Account Unit………………………………….……04
Public Accounts Unit…………………………………….…14
Administration Unit……………………..……………….….22
Foreign Exchange Adjudication Division……………….…32
Development Finance Support Unit………………………..39
Currency Management Unit………………………………..41
Foreign Exchange Operation Unit…………………………53

Page 3 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:

Deposit Accounts Unit (DAU)


Report to Deposit Accounts Department (Head Office Karachi)

OUR OBJECTIVES
Our objectives to visit the Unit are as under;
 Importance or role of DAU in State Bank of Pakistan
 Study the operations and functions of Deposit Accounts Unit
 Its structure and nature of responsibilities
 Check out the procedures and impediments in their procedure
 Check out the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Unit

DIVISIONAL STRUCTURE OF DEPOSIT ACCOUNTS UNIT

Page 4 of 57
DEPOSIT ACCOUNTS UNIT
The most important Unit or department of State Bank of Pakistan is Deposit Accounts Unit. Its
roles are as prescribed under;

Role of Deposit Accounts Unit


 Its deal with commercial Banks
 Provisions of loans for meeting time and demand liabilities to commercial Banks
(Refinance division of DAU)
 Its directs the working criteria of commercial Banks
 Balances and stock reports preparation
 Bank Accounts maintenance
 Transferring of funds
 Daily closing of Accounts are made here
 Closing of Bank daily operations

Scope of Deposit Accounts Unit


The scope of that Unit is very wide and nature of it is very important in the SBP.
 It is the most major Unit of the Banking sector and its role is most important in the
industry generally its main scope is in these means;
 Maintaining Accounts of commercial Banks
 Reporting their daily transactions
 Their reserve standing are checked here
 Remittances are transferred from here
 Remittances of all commercial Banks
 Government remittances also deal here
 Employee remittances
 Most major portion of State Bank of Pakistan is the closing of clean cash book. Clean
cash book is the record of the whole day transactions and their net effect after receipts
and payments.
 Receipts & payments of government
 Gives net off all receipts & payments through SBP

Page 5 of 57
1. Current Account
Every scheduled Bank is required to maintain a current Account at principal Office of State Bank
of Pakistan to perform and run their operation. There are 39 current Accounts maintained at
Faisalabad office from which 39 are active at SBP BSC (Bank). These offices provide facility to
other Banks to open current in SBP BSC (Bank) without any charges. Current Accounts are
maintained by DAU that is entrusted with the work of opening and maintaining the Current
Accounts of Scheduled and Non-Scheduled Banks and Other Foreign Banks.
Role of Current Account
This section deals with following activities:
 Registration of Current Accounts of all commercial banks carrying out banking activities
 Maintenance of cash balance with central bank
 Accounts books are maintained here
 Cash report on the daily transactions in commercial Banks
 Power of attorney of all commercial banks with the names of authorized persons
 Supervise the maintenance of statutory liquidity requirement (SLR) of commercial Banks
 Scheduled Banks are required to keep with the State Bank certain percentage of their
demand and time liabilities
 Schedule Banks required certain amount of excess reserves with the State Bank
 In case they are not meeting SLR, Penalties are imposed upon them
 Supply of cash in case of shortage in their balances
Scope of Current Account
Current Accounts scope is as under
 It is the main regulatory tool to control all the commercial Banks
 It conveys the standing position of a single Bank
 Maximum & minimum balance limits on all commercial Banks current Accounts is
imposed. That’s why it serves the following purposes;
 Securing the funds of general Public
 Securing all other Bankers interest
 Avoiding monopoly of a single Banker
 Facilitate Inter-Bank payments
 Buffer for statutory reserves in case of fluctuations in Banks demand and time liabilities.

Page 6 of 57
 For settlement of transactions with Other Banks or for Clearing purposes
 Maintaining balance Accounts of all Banks is more important task in the sector to
regulate their full impact on the Banking sector
 This Unit examine whether commercial Banks are meeting their current Accounts &
statutory requirements
REASONS OF CURRENT ACCOUNTS OPENING

 When they have excess amount above their holding capacity they can transfer in central
bank account
 For settlement of transactions with Other Banks or for Clearing purposes
Liaison Office
When schedule Bank maintain principal Accounts and elect to submit returns and Statements
required of them under rules small section known as schedule Bank section.
Principle Office
An office where the statutory accounts of all the commercial Banks are maintained is called
principal Office. These are at State Bank of Pakistan Head Office Karachi.
Statutory Account
At statutory Accounts all commercial Banks have to maintain a SLR of 15% that is the minimum
requirement for every commercial Bank if SLR of any commercial Bank SLR decreases from
15% then subsidiary Accounts balance can also be maintained. Statutory Accounts generally
maintained by the principal representative of every commercial Bank.
Subsidiary Account
Some branches of commercial Banks also maintain accounts at their regional Offices of SBP,
their reserves are called subsidiary Accounts. If the combination of both the balances is not
fulfilling their reserve requirement then penalties should be imposed on them.

Page 7 of 57
Current Account Opening Procedure

2. Remittance Section

Page 8 of 57
It facilitates the movement of funds from one place to another place in Pakistan.
Conditions of transfer of funds
 Movement of funds of commercial Banks
 From branch to head Office
 From head Office to branch
 Movement of government funds
 Movement of funds from SBP to out station
 Facilitative the flow of funds smoothly and efficiently between various centers in the
country
 Employee funds transfer
 From employees of SBP to employees of SBP
 From employees of SBP to general Public

Types of Remittances
 Telegraphic transfer (T.T)
 Mail transfer (M.T)
 Bank draft (B.D)
 Government draft (G.D)

Telegraphic Transfer (T.T)


This facility is mainly facilitated to commercial Banks against charging commission of @0.07%
by State Bank of Pakistan. They can transfer amount to the HOK @ 0.07% rate charged by
Central Bank.
It benefits the commercial Banks in the fallowing ways;
 Safe sending of funds to their respective Head Office
 Physical movement of fund is avoided
 Small payment is made in order to send remittance
 Large amount of funds are transferred from here
 It provides Accounts transfer to commercial Banks and the funds are transferred to their
respective branches
Mail Transfer (M.T)

Page 9 of 57
It facilitates the employees of SBP free of charge. It is the fastest way of fund transfer. Transfer
of funds between the employees of State Bank of Pakistan.
It benefits the employees in the fallowing ways;
 Fastest way of money transfer
 Employee can avail it free of charge
 Physical movement of funds is avoided
Bank Draft (B.D)
It facilitates the employees to transfer the funds outside the SBP free of charge. It is basically
used for the official payments of SBP
It benefits the employees in the fallowing ways;
 Facility to transfer funds to every place of the country
 Free serviced
Government Draft (G.D)
It facilitates the transfer of receipt and Payment of government free of charges.
For example: Payment of salaries of government employees to any government department.
 Receipts & Payments of government departments
 Free facility to government
 PAU facilitation

Page 10 of 57
3. Clean Cash
It is record of the daily receipts and payments balance of the State Bank of Pakistan. It is also
called Statement of Affairs of the Bank.
Maintenance and balance of cash is regulated and reported on daily basis to Head Office. All the
transactions regarding cash are adjusted by this section. All vouchers at the end of the day are
recorded in the books of Accounts. Receipt of vouchers from PAU and other unit is affected in
the clean cash book.
Importance of Clean Cash Book
 The most important document of the Bank which States the net position of the Bank how
much it received and paid.
 Record of the balances of all Bank transactions
 Before its balance adjusted Bank closing is not possible
 Statement of affairs of the Bank

Government Cash Transactions:


Generally most of Bank transactions are carried through under these heads. Some accounts of
central government treated separately like railway. Its basically deals with the data received from
Public Accounts Unit.
Central-I ( Non- Food)
Provincial-I ( Non- Food)
Provincial-II (Food)
Provincial-IV (District Govt.)

Central-1 (Non- Food):


All Accounts of Federal Government are being regulated under this head. All the receipts and
payments and receipts of government are recorded in this head. For example; income taxes,
federal employees salary etc.
In DAU a combined head is used for the number of transactions. All the entries related to a
specific head are posted under a head and their summary is maintained separately.
 Receipts
 Payments
Page 11 of 57
Provincial-I (Non- Food):
It deals with Provincial Receipts & payments. All the transactions of provincial sector other than
agricultural sector are recorded here. Same procedure of recording is adopted as for the central
transactions.
For example:
To Government Health Department, Judiciary, Education etc

Provincial-II (Food):
It deals with Government department which is engaged in Food & its product
For example:
Agriculture department

Provincial-IV (District Government):


It deals with receipts & payments of District government. Like District councils Accounts are
recorded under this head after getting record from District Accounts Office through Public
Accounts Unit.

Additional Services:
Customer Facilitation Centre:
This unit receives the complaints of general Public regarding commercial Banks & financial
issues and provides them necessary information as demanded.
A separate telephone number is available for this purpose so that Public can contact &
communicate their problems and issues and an Officer of Grade-2 available to listen the
complaints of the general Public.

Page 12 of 57
Suggestions about Deposit Accounts Unit

It was observed:
 In this Unit there should be a substitute of an employee in case of his absence or leave so
that it would not create burden on other coworkers.
 As daily transaction and balance Statement is physically collected by the members of
commercial Banks so to facilitate the Banks SBP send this Statement to Banks through E-
mail.

Page 13 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:

Public Accounts Unit (PAU)


Report to Public Accounts Department (Head Office Karachi)

OUR OBJECTIVES
Our objectives to visit the Unit are as under;
 Importance or role of PAU in State Bank of Pakistan
 Study the operations and functions of Deposit Accounts Unit
 Its structure and head of responsibilities
 Check out the procedures and impediments in their procedures
 Check out the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Unit

DIVISIONAL STRUCTURE OF PUBLIC ACCOUNTS UNIT


PUBLIC
ACCOUNTS
UNIT

PAYMENT RECIEPT

CASH CASH

TRANSAFER TRANSFER

CLEARING CLEARING

Page 14 of 57
PUBLIC ACCOUNTS UNIT

This unit is the backbone of the State Bank of Pakistan. Being Banker to the government relating
its basic functions it plays a key role to perform central Bank obligations, collect taxes on behalf
of government which is the most important function of central Bank. Its roles are as prescribed
under;
Role of Public Accounts Unit
 Dealing in government Accounts
 Banker to the government & hold cash balances of government Accounts
 Collections of taxes & Providing short term loan
 Payment of salaries to employees of the government
 Dealing with the receipts & payments of government sector
 Balances and stock reports preparation with PAU data
 Government Accounts maintenance & Transferring of funds on transactions
 Daily closing of accounts at DAU with the record of PAU
 Closing of Bank daily operations after sending PAU vouchers

Scope of Public Accounts Unit


The scope of that Unit is very wide and nature of it is very important in the SBP.
 It is the major Unit of the commercial sector and its role is most important in the industry
generally its main scope is as under;
 Maintaining Accounts of government
 Reporting their daily transactions to DAU
 Maintenance of funds of central and provincial government
 Assignment Accounts are maintained here
 Major portion of State Bank of Pakistan is the closing of clean cash book. Clean cash
book is the record of the whole day transitions and their net effect after receipts and
payments. Without PAU balance it can not be maintained. Mainly these are;
 Receipts & payments of government
 Gives net off all receipts & payments through SBP

Page 15 of 57
Cash Receipts & Payments

This section deals with the direct receipts and payments of government accounts. Now a days
cash transaction is usually discouraged at a larger extent. Most of the transactions are made on
account of transfer. Transfer account is made for the large denomination of transactions and are
carried through the process from commercial banks. In PAU only the payments will be made
against Provincial Government & Federal Government cheques.

If the entire particular are correct & verified. He will attached token with cheque then he will
place the stamp of signature verification and pass it if its value is Rs.20, 000 or less and Rs.20,
000 above will be passed by ACM.

Drawing and Disbursement Officer (DDO) or its representative specimen is already kept by
PAU. If new DDO is appointed than following document along with its specimen signature has
to provide to PAU.

 Transfer letter
 Charge Report
 All the other documents
 Schedule must be sealed

After it a new signature card is issued to new DDO. On passing cheques are sent to cash
department where from presenter get payment. At the end of working day cash department
prepare “Payment Statement” and returned it to PAU, on next day paid instruments are sent
backed to District Account Office. Daily and monthly statement is sent to DAU. Payment
Vouchers are also sent to DAU so that they can prepare the clean statement.

Page 16 of 57
CASH

CASH PAYMENT PROCEDURE

SCHEDULE PREPARATION
RECIEVE
TOKEN VERIFICATION TALLYING OF
PRESENTING MONEY
ISSUED (FROM LIST WITH VOUCHERS
CHEQUE ON FROM CASH
AFTER OF SYESTAMATIC &
RECEPTION PAYMENT
SCURITNY RESPECTIVE REPORT DELIVERED
COUNTER
DEPTT.) TO DAU

CASH RECIEPT PROCEDURE

DIRECTLY TICKING
PREPARATION
CASH ACCEPT INPUT/ WITH TRANSFER OF
CASH OF REPORTS
ALONG WITH AUTHORIZATIO SYESTMATIC PAYMENT TO
DEPARTMENT & ABSTRACT
CHALLAN N REPORT IN TREASURER
VOUCHERS
FORM PAU

Page 17 of 57
Transfer Receipts and Payments
Cheques are delivered to PAU by NIFT. When a cross cheque is issued by Provincial or Federal
Government to an individual or big firm, that firm or individual will present to his bank, bank
will hand over that check to NIFT which will bring that cheque to PAU clearing section. Most of
the transactions are carried through this process and the major source of transferring funds.

If entire particulars are correct and properly verified then checque will be passed as under

 Cheque of amount Rs.40, 000 by OG- 1,2


 Cheque of amount Rs.40, 000 above by OG- 1 and ACM (PAU)

Type of Account
Its deals with the fallowing types of accounts.
Central-I ( Non- Food)
Provincial-I ( Non- Food)
Provincial-II (Food)
Provincial-IV (District Govt.)
Railway C-3

Page 18 of 57
1. TRANSFER

TRANSFER PAYMENT PROCEDURE

RECIEPT OF
CHEQUE/ CHECKING PREPARATION
PAID
WHOLE RECIEVING OF OF RECIEPT
SCHEDULE INSTRUMENT
PROCEDURE VOUCHER INSTRUMENT & DELIVER
MARKING SEND TO
AT PAU AT OR TO DAU TREASURER
INFORMATI SCURITNY
ON DESK

TRANSFER RECIEPT PROCEDURE

PREPARATION
DIRECTLY INPUTTING/ TICKING OF DISPATACH
DEPOSITED ABSTRACT
ON AUTHORIZA WITH TO
BY BANK VOUCHERS
COUNTER TION CHALLAN TREASURER
TO DAU

Page 19 of 57
Clearing Receipts and Payments
Cheques are delivered to PAU by NIFT. When a cross cheque is issued by Provincial or Federal
Government to an individual or big firm, that firm or individual will present to his bank, bank
will hand over that check to NIFT which will bring that cheque to PAU clearing section.

Clearing house will check following things;


 Clearing Stamp of Commercial Bank
 Crossing Stamp
 Endorsement Stamp of bank to take all risk on themselves
 District Account officer signature will be verified
 Endorsed seal of account office
 Tally the amount and name with schedule provided by account office.

If entire particulars are correct and properly verified then checque will be passed as under

 Cheque of amount Rs.40, 000 by OG- 1,2


 Cheque of amount Rs.40, 000 above by OG- 1 and ACM (PAU)

Type of Account
Central-I ( Non- Food)
Provincial-I ( Non- Food)
Provincial-II (Food)
Provincial-IV (District Govt.)
Railway C-3

Page 20 of 57
CLEARING

CLEARING PAYMENT PROCEDURE

INPUTTING/
AUTHORIZAT DESPATCH
BANK SCURITNING TICKING
ION ABSTRACT VOUCHERS
CHEQUE OF INSTRUMENT PREPARATIO TO
PRESENTED INSTRUMENT & AFTER N RESPEFTIVE
BY NIFT VERIFICATION
PASS WITH TREASURER
LIMIT

DEPOSITED INPUTTING/ TICKING ABSTRACT


COLLECTION DISPATCH TO
THROUGH AUTHORIZATI WITH VOUCHERS TREASURER
BY NIFT
BANK ON CHALLAN TO DAU

Page 21 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:
Administration Department (AD)
Report to Administration Department (Head Office Karachi)

OUR OBJECTIVES
Our objectives to visit the Unit are as under;
 Importance or role of Admin Department in State Bank of Pakistan
 Study the operations and functions of Administration Department
 Its structure and nature of responsibilities
 Check out the procedures and impediments in their procedure
 Check out the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Department

DIVISIONAL STRUCTURE OF ADMINISTRATION DEPARTMENT

ADMINISTRATION
DEPARTMENT

STAFF MATTERS STAFF BENEFIT MEDICIAL


UNIT UNIT UNIT

Page 22 of 57
ADMINISTRATION DEARTMENT
This is the administrative department of State Bank of Pakistan. Its roles are as prescribed
under;

Role of Administration Department


Its role is only related to the dealing in al employee related issues. Administration Division
exists for the purpose of implementing policies relating to;
 Dealing in all staff matters
 Providing of medical facilities
 Procurement
 Salary/Advances
 CR&D

Scope of Administration Department


The scope of that Unit is very wide and it is very important for the employees of State bank of
Pakistan.

 It ensures smooth functioning of the office by proper allocation of all resources


 Maintaining Internal Bank Security
 Matters of employee satisfaction
 Beneficent for the employees of SBP

Page 23 of 57
1. Staff Matters Unit

 Deals with the cases of transfer/posting


 It also deals with disciplinary matters.
 Matters relating to recruitment in SBP (BSC) are also handled such as the formalities of
assurance bond, secrecy bond, fitness certificate.
 Staff is promoted on the grounds of Point Based System (Appraisal).
 Seniority List and Grant of Annual Merit Increase is prepared yearly to examine who
have retired and who have been transferred to other offices
 Cases of retirement, dismissal, resignation and death of the employees are also examined.
Incase of death, all dues of employee are paid to the legal heirs by the SBP after
deducting the liabilities
 Sanctioned / Working Strength of the Office is also maintained.
 Leave record of all the employees is also maintained in the system
Recreational leave is must for the employees for continuous 15 days and he is paid half of
the monetized salary for the RL.
 Leave Encashment is also granted to employees on the basis of leave record

Page 24 of 57
Staff Benefits Unit

Role of Staff Benefits Unit


This section deals with following activities:
 Payment of salaries
 Payment of conveyance charges/overtime
 Education allowance and other payments
 Making various recoveries like HBA, GP Fund and other Advances, Taxes etc
 Preparation of Monthly/Quarterly/ Half yearly / Annual statements of different accounts

Sub-Sections
 Salary section
 Pension section
 Loan & Advances section

 Salary Section

 Payments of Pension/Benevolent Fund


 Traveling and Daily Allowances are paid to the employees
 Monthly salaries, Remunerations for permanent, probationary, contractual
employees are prepared
 Cases of marriage grant / funeral expenses (both Rs.20, 000/-) for employees are
examined here

There are two type of salary structure i.e. Officer Grade and Non-Officer (clerical and non
clerical)
There are three parts of salary slip:
Payment
Deduction
Net Payment

Page 25 of 57
Payments

It includes;
 Monetized Salary
 Education Allowance ( Clerical and Non-Clerical, Rs.500)
 Telephone Allowance (OG-2 Rs.662 & for OG-3,4 Rs.1124)

Deductions
 Income Tax (It will be charged if Taxable Income is more than Rs.300,000)
 EUF(Employee Union Fund, Only Member of union, Temporary nature)
 BF (Benevolent Fund is deducted from Rs.50 to Rs.250 from permanent employees;
amount of BF varies according to monetized salary. Amount equal to employee
contribution is also contributed by bank)
 GTA (Group Term Insurance), it is charged from both contractual and regular
employee’s, its value varies according to monetized salary, deductions are made on
monthly bases and sent to Insurance Company, Rs.21 is contributed by bank for clerical
& Non-Clerical If additional benefits are availed then GTA value will be higher)
 GPF (General Provident Fund, Employee’s contribution 5% of monetized salary)
 GPF advance (If the employee age is more then 50 years then 80% of
balance in GPF a/c is allowed to encash and don’t need to pay back but if
below the age of 50 only 50% portion of balance amount can be advanced
and have to pay within 2 years
 Regular recovery from salary

Net Payment = Total Payment – Total Deduction

Page 26 of 57
Pension Section

Payment of monthly pension is ensured for employee/family pensioners.


Normal Retirement
When employee will retire after 60 years he will obtain following benefits.
50% of GPF, 50% will be restored and will be paid at the age of 75 years.
He is provided option to take Medical encashment in lump sum or 10 times of monetized salary.
If he wants to avail gratuity then he will be paid in following way
Gratuity = Years of service × Monetized salary

Early Retirement (Above 55 years and below 60 years)


 50% of GPF and 50% will be restored and paid at the age of 75 years.
 Employee has the option to either retain medical facility or avail medical encashment.
 He will avail leave encashment facility 730 days
Termination of Services at Employee Option
 50% of GPF and 50% will be restored and paid at the age of 75 years
 Leave encashment is provided for 730 days (730*monetized Salary/30)
 Medical encashment must be availed which is 10 monetized salary
 He can avail BF Rs.4000 max per month for 15 years. He has option to get it lump sum
or monthly basis
 Medical facility is not provided.

Family Pension
If employee dies after retirement then his/her dependents will receive his/her pension.

Dependent:
Dependent will be the following persons.
 Wife of employee
 The Eldest child of employee either daughter or son.
Pension for wife is BF along with pension but boy and girl will only get pension.

Page 27 of 57
Age Limit

 Son can get pension till the age of 21 but daughter can get till marriage
 Wife can get the ¼ of pension along with BF, but if wife has died then eldest child will
get ¼ of pension without BF
 When one child has passed the age of 21 years in case of boy and married in case of girl
then next eldest child will get the pension and so on
 If a person has two wives then 50% will be given to each of them. If wife re-marries then
she will not be entitled to get pension

Loans and Advances Section:

Types of Advances
Staff Loans in respect of;
 House Building
 Motor Car
 Computer Loan
 Personal Loan

To ensure removal of objections if any and resubmission of Staff Loans cases for sanctioning
 Original title documents of properties against loan paid to the employees are also
maintained.
 GPF Non refundable advance is also granted to employees.

Page 28 of 57
Medical Unit

Role of Medical Unit


 Payment of Bills/fees to Specialists, Suppliers, Hospitals and Pathological Laboratories
 Preparation of Requisition and Blanket Purchase Agreement of Medicines for purchase of
Medicines for Bank’s Dispensary
 Reimbursement of medical claims of employees
 Deal with the cases of Medical Facilities transferred to and from other offices

Stakeholders
Internal Stakeholders
a. Employees of State Bank of Pakistan
External Stakeholders
a. Hospitals
b. Consultants
c. Laboratories
d. Medical Stores
e. Medicine Distribution Companies
f. Authorized Suppliers

Medicine slip
Medical facility is provided to employees and his/her dependents in the form of two doctors
(ACMO/ LBMC) who are available during the office timings in the premises of SBP-BSC.
Emergency slip
If any medicine is not available at the bank dispensary then an Emergency slip is issued and the
medicine can be taken from the authorized Medical store.
Reference slip
The doctor at bank can also refer the patient to another consultant, hospital or laboratory. They
are referred to the enlisted consultants, laboratories and hospitals. The rates for these hospitals
and consultants are approved HOK. Approved rates of HOK are intimated to the concerned
specialist and they are affective for the period of 3yrs. Any changes in rates can be made only
after 3yrs. The doctor issues Reference Slip with the name of hospital or consultant mentioned.
Page 29 of 57
From Other Office
The medical facility of Employees/dependents can also be transferred to other offices if the
employee is not satisfied with the consultant/hospital of the same office. They are generated on
receipt of request from employee & after CM approval.
Purchasing
The medicines are purchased from the authorized medical suppliers/distributors on monthly
basis. The minimum and maximum quantities required for the medicines are updated and
generated in MSS. The doctor can make any changes in the order according to requirements in, if
required. This purchase order is checked and verified by the authorized persons (ACM, DCM
and CM) and sent to the supplier. Three copies of Purchase Order are generated, 1st is for the
supplier, 2nd for the dispensary, 3rd for the medical unit as a proof for making payment. The stock
is available at the Main store of the bank and it is transferred to the Dispensary on the basis of
daily indent. Further, the medicines received from Store are manually recorded in the Stock
Register of Store. Daily indent is approved by the bank doctor. Availability of prescribed
medicines at Dispensary is ensured against fortnightly indent.
Stock
a. Receiving:
The items are received and are put in system. Only those items are received for which the
order is made. If the order is short then bill is made for the received goods only. And if the
goods received exceed the order quantity then they are returned to the supplier. The supplier
is credited after receiving goods.
b. Inspection:
The medicines are delivered to the main store of bank and they are inspected to make sure
that they are in required quantity, quality and order. The purchase order no. is checked and
matched in system and expiry dates are also checked.
c. Delivering:
After receiving and inspecting medicines, they are sent to the Main Store and then to the
Bank Dispensary on daily indent basis.

Page 30 of 57
Payment Procedure
In making payments, the employee PIN, reference slip and consultant/hospital rates are checked,
compared and verified. The signature of the employee and Bank’s doctor are also checked. The
case is audited and the voucher is generated. The invoice is approved by the authorized persons
in the hierarchy and forwarded for further processing. The distribution total and approved
amount should be same to make payment. The Accrual Account is transferred to Accounts
Payable account and all payments are made through A/P Module. Payment order/Bank Drafts are
sent to concerned quarter as soon as received from Deposit Account Unit (DAU).

Taxes
Income Tax Certificates to Suppliers of Medicines/Specialists/Hospitals/Clinics/Medical stores
are also generated as when required.
6% withholding tax is applied if the services exceed from Rs.10, 000.
3.5% withholding tax is applied if retail goods amount exceeds Rs. 25,000.
1% withholding tax is applied if trade goods amount exceeds Rs. 25,000.

Employee Reimbursement
The medical claims of employees are reimbursed by 100% incase of the enlisted consultants,
laboratories and hospitals and 70% if the services are acquired from Shaukat Khanum Memorial
Cancer Hospital and Agha Khan Hospital Laboratories.

Page 31 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:

Foreign Exchange Adjudication Division (FEAD)


Report to: Foreign Exchange Adjudication Department (Head Office Karachi)

OUR OBJECTIVES
Our objectives to visit the unit are as under
 Importance or role of FEAD in State Bank of Pakistan
 Study the operations and functions of Foreign Exchange Adjudication Division
 Its structure and nature of responsibilities
 Check out the procedures and impediments in their procedure
 Check out the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Division

DIVISIONAL STRUCTURE OF FOREIGN EXHANGE ADJUDICATION


DIVISION

foreign Exchange
Adjudication
Department (HOK)

Foreign Exchange Foreign Exchange Foreign Exchange Foreign Exchange


Adjudication Adjudication Adjudication Adjudication
Division Faisalabad Division Lahore Division Multan Division Sialkot

Page 32 of 57
Foreign Exchange Adjudication Division
The division which deals with the cases related to the default foreign exchange dealings. When
the foreign exchange is not brought with proper channel then adjudication court deal with those
peoples and imposes penalties.

Role of Foreign Exchange Adjudication Division


Its roles are as prescribed under;
 Dealings with fraudulent transferring of foreign exchange to other countries
 Taking every single foreign currency for exports made by home country
 Transferring of funds with judicial pressure to the home country
 Facilitating importer & exporter
 Prevention of lengthy procedures of traditional courts
 Speedy trial

Foreign Exchange Adjudication Department


Foreign Exchange Adjudication court was established in1990 through an amendment in the
Foreign Exchange Regulation Act, 1947 Vide Finance Act made in the year1987 and court was
established in1990. By this amendment some powers are delegated to adjudication court to deal
with the cases of foreign exchange.
FEAD formulate some rules in its manual with in the powers of Foreign Exchange Act 1947.
Foreign Exchange Operations Departments is eligible to lodge complaints for the violations of
the various sections of the FER Act, 1947.
 Deals with violations of provision of FER Act,1947
 Export violations
 Import violations
 Invisible receipts
Export Violation
In case when foreign exchange receipt is overdue on exporter side within six months from
the date of shipment or due date of payment whichever is earlier.
(Violation of section 12(1) of Foreign Exchange Regulation Act 1947)
Import violation

Page 33 of 57
In case of import violation payment is made in advance but goods are not yet received within
prescribed time period
(Violation of section 4(3) of Foreign Exchange Regulation Act 1947)
Invisible receipts
In case when invisible services are provided by any party and payment is not yet received For
Example;
 Consultancy
 Software development
 Tourism services etc
(Violation of section 10 of Foreign Exchange Regulation Act 1947)

Working of Unit Team


 Adjudicating Officer
 Reader to the Adjudicating Officer
 Word Processing officer
 Bailiff/ Messenger

Appointment Right of Adjudicating Officer


Governor of State Bank of Pakistan has the right to appoint the adjudicating officer of all offices
where adjudicate Courts are established.
Adjudication officer would be a minimum of OG-3 in the court.

Page 34 of 57
Documents Required for the Complaint
FEOD sends a complaint to FEAD along with following necessary documents attached with
complaint:
1. Original copy of E-form (Original/Duplicate)
2. Copy of GD -1 (Goods declaration Form) acquired from custom office
3. Bill of lading/Airway Bill/Railway receipt/Truck receipt
4. Copy of commercial invoice
5. Copy of V-16
6. Copy of CNICs of all proprietors including directors and all partners of accused party
7. Copy of short shipment notice (In case of less shipment)
8. All notices issued to accused party by FEOD
9. Any reply from accused party (If Any)
10. Certificate of Non-Pendency by FEOD
11. Attach all correspondence of Accused party with bank
12. Scrutiny Sheet submitted by AD to FEOD

Page 35 of 57
Procedure for a Complaint

RECIEPT OF COMPLAINT
Scuritny of Document

REGISTRATION OF COMPLAINT BY READER OF THE COURT


If not complete back to FEOD with objection , Memo & CCsend to Head office

PHOTOCOPIES OF FORM-E

PREPARATION & MAINTAINANCE OF FILE


Checklist of FEOD & FEAD

GETTING EXCHANGE RATES

D.F.A OF SHOW CAUSE NOTICE

FAIR SHOW CAUSE NOTICE TO ACCUSED

SERVICE OF SHOW CAUSE NOTICE TO ACCUSED


By Registerd Post & By Messenger

If not serviced then accused is If serviced then whether the


located from different sources, accused give satisfactory
after then published in answer or not
Newspaper

If satisfactory Unsatisfactory
In case of no response Ex-Party then case closed or
proceeding started & Case
decided

No response after service a summon


File Closed will issued to exporter containing 1st
date of hearing

Page 36 of 57
Appearance of person in FEAD

Whole case is briefed & explained to


exporter, in a language which he
understands

If accused plead guilty then penalty imposed If accused not p lead guilty then charge
on him is framed & copy of orders supplied to
him

` Next date of hearing fixed for


Documentary evidence with witnesses
for his defense

On final hearing adjudicating officer


would give judgment

File Closed

Page 37 of 57
Rules Regarding Penalties
 Penalties are given to discourage detention of funds of Pakistan outside the country by
SBP
 Adjudication officer can impose maximum penalty of 5 times of the exported value
 Authorized dealers can be penalized with amount of Rs. 5000 or Rs. 2000 per day from the day of
default (In case of non / wrong submission of any information.

Appeal against penalty


 The person can appeal in FER appellate board within 30 days from the date of judgment
 Only 1 appeal can be filed against the decision of adjudicating officer

Recovery of Penalties
 Copy of judgment sends to respective bank with the direction to debit his account. If
sufficient amount is not available a recovery certificate is made and sends to District
Officer Revenue.
 Meeting with recovery officials.
 Reminder are issued to the collector of the department

Suggestions
 Penalties should be more tightened
 Adjudication jurisdiction should be expanded to all FEOD operations

Page 38 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:

DEVELOPEMNT FINANCE SUPPORT UNIT

Report to:
Development finance support department

Scope of study:
Our objectives to study the unit

Development finance support unit

History of unit:
It was observed by SBP-BSC that provision of funds to remote sectors was not sufficient. Small
scale entrepreneurs and deserving people were not aware of financing policies announced by
SBP.

Development:
Development Finance Group (DFG)

DFSD (Head office Karachi SBP-BSC)

13 field units in SBP


BSC
(DFSU) Partner Departments

 Agriculture Credit
Departments
 Micro finance
department
 Islamic Banking
Department
 SME finance
department

Page 39 of 57
DFG:
Then a group was formed to provide financial infrastructure for provision of financial services to
all segments of society and all sectors of the economy.
It establishes polices regarding financial issues.
It is engaged in enhancing the capacity to catalyze and facilitate expansion of financial services
in un-banked or under-banked areas or sectors.
DFSD:
This department was formed for the implementation of policies launched by DFG.

Objectives of DFSU:
 To coordinate and interact with DFG and banks ( region wise & Branch wise)
 To communicate the banks policies & schemes to stakeholders
 To monitor banks performance towards achievements of their goals
 Optimally target our resources to increase outreach of financial services in un-banked
areas
 To aware general public about the beneficial schemes regarding financing.
 To disseminate the information to stakeholders

Functions of DFSU:
This unit performs functions in field given below.
This unit encourages and develops stakeholders in following fields

Functions

Agriculture Finance Microfinance SME finance Islamic Banking Finance

Methodology:
Creation of Focus groups in relevant areas of each sector
i.e. Financial institutions
Academia
Internal/External stakeholders

Page 40 of 57
State Bank of Pakistan
Internship Program 2010
Group: 3
Unit Report:

Currency Management Unit (CMU)


Report to Currency Management Department (Head Office Karachi)

OUR OBJECTIVES
Our objectives to visit the Unit are as under;
 Importance or role of CMU in State Bank of Pakistan
 Study the operations and functions of currency management Unit
 Its structure and nature of responsibilities
 Check out the procedures and impediments in their procedure
 Check out the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Unit

DIVISIONAL STRUCTURE OF CURRENCY MANAGEMENT UNIT

Page 41 of 57
CURRENCY MANAGEMENT UNIT
Currency management Unit is the most important Unit of State Bank of Pakistan. Issuing of
notes is the primary and basic function of State Bank of Pakistan. Central Bank has the sole right
to issue new notes to the general Public.
Role of Currency Management Unit
 Issue notes & Note Design
 Monitor the performance of all commercial Banks relating to cash & currency
 Forge note dealing & Disposal of notes
 Forecasting that how much currency will be needed in coming year
 Its directs the working criteria to commercial Banks of circulation of notes
 Physical transferring of funds to chest Offices
 Record of currency note with its denomination
 Note exchange facilities and Anti-counterfeit measures
 Withdrawal of Soiled Notes from circulation and their destruction
 Issue and Distribution of Fresh Notes and Coins
 Plays supervisory & regulatory functions regarding distribution of currency
 Arrange Currency operation in the country & Impose penalties
Scope of Currency Management Unit
The scope of that Unit is very wide and nature of it is very important in the SBP.
 Maintain & manage currency and its secured distribution
 Currency is issued by that Unit and note exchange facility
 Destruction of soiled notes under normal/special procedure
 Issuing of fresh notes for commercial Banks/chests
 Facilitate to the general Public by the exchange of defective notes & private awareness
about anti-counterfeit measures
 Withdrawal of old notes from circulation
 Physical remittances are transferred from here
 Remittances to SBP Offices
 Remittances to chest Offices
 Function as the government treasurer
 Design rules, regulations, procedure and practices for currency management

Page 42 of 57
Note Issue Section
One of the primary responsibilities of the State Bank is the regulation of currency in accordance
with the requirements of business and the general Public. The overall affairs with respect to the
issuing of notes are conducted through this department. Every province Office of State Bank of
Pakistan has issuing Office according to 1956 act.
Functions of Note Issuing Section
 It maintains the documentation of currency notes issued to Offices of SBP
 It kept the record of currency of commercial Banks & also issue currency notes drawn by
commercial Banks as per required
 Notes are issued to commercial Banks as per the volume of the funds and on the basis of
their branches

Scope of Note Issuing Section


Note issuing scope is as under
 Maintenance of good currency condition
 Issuing note in replacement of soiled notes to avoid shortage of money

System of Issuing Notes


 Fixed fiduciary system
Issuing note up to certain limit without reserves maintenance. 100% reserve after crossing limit.
 Proportional reserve system
Keeping 20% reserve of every note issued to the general Public or chest Offices.

Reserve Maintenance
Notes are issued by maintaining supply and demand requirement, in order to avoid inflation
reserves are maintained in the form of;
 Gold
 Foreign Exchange
 Government securities

Page 43 of 57
Life Cycle of Bank Notes

Page 44 of 57
Remittance Division
This division deals with the physical movement of funds between SBP Offices and other chest
Offices. This is the physical movement of cash. In issue Office currency Officer authorize to
pass the transfer of cash in case of excess cash in Office or shortage of cash in another Office.
Role of Remittance Section
 Overseeing Currency Operations; Supply, Distribution, Withdrawal, Verification and
other applicable laws
 Ensuring accurate booking/ reporting of various cash management Statements and taking
corrective measures
 Issuing of Policy/Instructions to all the Field Offices regarding management of currency
 Need assessment and procurement of cash handling and counterfeit detection equipments
in coordination with BSSD (SBP)
 Its main function is to send a remittance of cash to different cities under its region:
 Excessive funds collection from chest Offices

Scope of Remittance Section


This section scope is as under;
 Secure way of transferring funds to the other field Offices
 Physical movement of cash is made by that process
 Large amount of funds are transferred by this division
 Movement of funds to the chest Offices facilitated by that procedure
 Chest Offices can safe their currency by sending excessive cash to SBP vault
Types of Remittances
 Inward Remittance
Receiving notes from NBP chests/State Bank offices
 Outward Remittance
When State Bank Office send their funds to NBP chests & SBP offices

Page 45 of 57
REMMITANCE SENDING PROCEDURE

Page 46 of 57
NOTE CATEGORIES

 Issuable Notes
 Fresh notes
 Re-issuable notes
 Non-Issuable Notes
 Soiled notes
 Mutilated notes/defective notes
 Claim notes
 Charred notes

FORGE NOTE DIVISION

Promoting mass awareness activities among general Public about forged notes and clean note
policy by suggesting different cost effective means and overseeing/coordinating field Offices
activities in this regard. Analysis of international best practices on incorporation of security
features and combating counterfeiting.
Role of Forge Note Section
Role of this section is as under;
 This division form rules and regulations in treating forge note case
 Improving security features of Bank notes to avoid forging
 Deals with different forge notes and research on these copying procedures
 Design rules to stop copying currency notes
 Dealing with forge cases and court
 Maintain updated information regarding various modes of forgeries detected in
counterfeit notes/coins in circulation & provision thereof to law enforcement Agencies

Page 47 of 57
FORGE NOTE FILING PROCEDURE

CASH MONITORING & EXAMINATION DIVISION

Page 48 of 57
This Unit deals with two specific portions,
 Cash monitoring
 Clean note policy
Cash Monitoring
This section performs these tasks;
 Supervision of currency
 Make plan of whole year for visiting commercial Banks
 Commercial Bank inspection regarding currency that are;
 Commercial Banks are providing clean notes to general Public or not
 Daily 2 Banks are being inspected without an intimation
 New notes are issued to local peoples or not
 Debit advice is send to commercial Banks incase there is shortage of cash in counting and
voucher send to DAU
 Checking whether clean note policy is implemented or not
 Monitoring and On-Site Inspection of Cash Operations
 Minimize Public complaints regarding
 check the sorting of notes and supply of good quality notes to the general
Public
 Currency in good form is provided or not
Clean Note Policy
Clean note policy is to improve and enhance the condition of Bank notes those are in circulation
in the market. In order to increase the circulation of fresh notes, it is also essential that soiled
notes are withdrawn simultaneously from the circulation. For this purpose; BSC has introduced
various changes in the systems and procedures related to currency management mechanization.
BSC has taken a number of steps to improve the quality of Bank notes in circulation.
Role of Clean Note Policy
 Maintaining a fresh notes in the market
 Improvements in the quality and availability of notes
 Technological up gradation in currency verification and destruction process

Page 49 of 57
CURRENCY VERIFICATION & DESTRUCTION SECTION
In view of the growing volume of notes in circulation and the limitations of existing system State
Bank has authorize commercial Banks to accept defeated notes from Public and present at State
Bank counter under special circumstances. And these notes are deal in that section.

Currency Management Processes


In this process good condition notes are separated from spoiled notes and forged notes. Spoiled
and forged notes are sending to vault after receiving from general Public. Spoiled notes are
carried for the period of six months and forged notes for one year for the tenders claim. After
that period these are destroyed at a special destruction place where these are buried in the
presence of DCM cash or authorized persons. Before burning and after counting of notes are
made and treasury Officer count these with vault members.

Page 50 of 57
CLAIM COUNTER DIVISION

The exchange facility over Bank's counters is available free of cost during the business hours of
the respective field Office. The serial numbers of counters are displayed in Banking hall of each
field Office where exchange facility is available. The mutilated/cut notes are exchanged by BSC
as of grace under the “Note Refund Rules”. However, when the mutilated/cut note is not found
payable under the Rules, the same is rejected and rejection advice issued to the renderer. The
rejected note is retained by BSC and destroyed after six months.

Types of Claims

Two types of claims are made at this counter and paid to general Public without any charges.
 Directly payable notes
Some notes issued at the counter are directly paid to the peoples fulfilling specific requirements.
 75% portion not spoiled
 Quaid-e-Azam picture un-teared
 At least one number fully appeared
 One or two pieces notes having both numbers
 Oily, mutilated, defective notes and faint notes

 Paid after specification or Claim


Some notes those are in more poor condition are send to next day claim and passed if they fulfill
these requirements otherwise send to vault and not paid back;
 More then 50% portion available
 Quaid-e-Azam picture un-teared
 At least one number fully appeared
 Fraudulent activity not made

Page 51 of 57
Suggestions for Improvement
It was observed:
 Public awareness should be created to attain the clean note policy
 Public should be fully aware of how much cost should SBP bear on issuing a single note
 Black marketing of notes should be fully discouraged in order to avoid it strict polices should
be implemented
 Remittance sending procedure should be changed due to much complicated steps are
fallowed like railway time, police dealing and very long procedure of sending a remittance
which cost much time wasting (Manual updating)
 Forge note policies should also be stricted a large extent and SBP panel court should decide
that what to do with these criminals because of court long procedure and corruption setup.
Forge note criminals should not be tolerated
 Forge note section should give suggestions to improve security features of notes by dealing
different forge cases
 Unethical use of currency should be strictly prohibited and these new rules should be
developed like oil notes and other these are the misconduct of Public why they are not taking
at safe places. Rules should be changed a little and little bit strictness should be taken to
avoid large cost on new issuing notes and save government budget
 Proper staff backup should be provided to every Unit in case of their absence, rotation or
transfer. So the other employees can perform effectively at their post
 Punishment in case of forge notes should tightened mores

Page 52 of 57
State Bank of Pakistan
Internship Report 2010
Group: 3
Unit Report:

Foreign Exchange Operations Department (FEOD)


Report to Foreign Exchange Operations Department (FSD)

OUR OBJECTIVES
Our objectives to visit the unit are as under
 To know the role of FEOD in State Bank of Pakistan
 To Study the operations and functions of Foreign Exchange Operations Division
 Its structure and nature of responsibilities
 To Check the procedures and impediments in their procedure
 To Check the flaws in their operational activities
 Evaluation and suggestions for performance improvement of that Division

DEPARTMENTAL STRUCTURE OF FOREIGN EXHANGE OPERATIONS


DEPARTMENT

FOREIGN EXHANGE
OPERATIONS
DEPARTMENT

Imports/exchange
Return section
companies section Export section R & D/DLTL section Overdue section

Page 53 of 57
Foreign Exchange Operations Department:-
The division which deals with the cases related to the foreign exchange dealings. When the
foreign exchanges is brought into/ send out with proper channel the record of every transaction
of foreign exchange is maintained with A.D. This division basically deals with the post facto
checking of documentation of foreign exchange transaction carried out by an A.D during the
month. This department deals with the Commercial foreign exchange only.

Role of Foreign Exchange Operations Department:


Its roles are as prescribed under;
 Dealings with transferring of foreign exchange to other countries
 It regulate foreign exchange with the Foreign Exchange Regulation Act,1947
 Facilitation of exports by strict monitoring
 Its directs the working criteria for foreign exchange transactions
 Taking every single foreign currency for exports made by home country
 Repatriation of export through FEAD orders.
 Facilitating importer & exporter

Scope of Foreign Exchange Operations Department


Its scope is as prescribed under;
 Creation of foreign exchange
 Facilitation of exports
 Facilitating importer & exporter

Page 54 of 57
Types of Foreign Exchange
 Commercial transaction
 Non-Commercial
Non commercial foreign exchange consists of individual remittances of various nature.
Procedure:
State Bank of Pakistan has authorized certain branches of commercial banks to deal with
foreign exchange. These branches are called Authorized Dealers (Ads). First of all, the exporter
signs a contract with the importer abroad. Then he approaches any AD with the contract and
obtains an E- Form from it. On this E- Form all the details of the contract are written. Then if AD
is satisfied, after fulfillment of its requirements, it provides the exporters with requisite finance.
Then AD submits all these documents to SBP through this Unit. SBP after checking all these
documents provides finance to the AD. AD charges 8.5 % interest from the exporters out of
which 7.5 % goes to SBP and 1 % goes to the AD.

There are five sections operating in this unit


 Returns section
 Imports / Exchange companies
 Exports section
 R & D section
 Overdue section

Returns section:
All types of returns are received in this section. All authorized dealers submit their monthly F.E
return to FEOD. In this section documents with Form-E and Form-I forms are separated. An
initial checking is also made. Documents with E Forms are sent to the Export section and
documents with I Forms are sent to the Import section.

Page 55 of 57
Export Section
Documents with E Forms are checked and verified in this section. At the front side of the E

form following particulars is checked. 7digit code (this code is allotted by SBP), National Tax
Number, I D card number, Date of issue, Place of issue, Origin of Goods, Name and Address of
AD, Name of Beneficiary
Description of goods, Quantity, Invoice Value, Port of Shipmen, Date of shipment
At the backside of the E Form following particulars are verified.
Coding of transaction by AD/ SBP, Country to which exports are made, Country code,
Commodity , Amount in figure , Amount of words, Quantity , Mode of transportation

Bill of Lading
If the exports are made through the Ship then the shipping company issues a bill of lading. In this
bill, following particulars are verified. Booking number, importer’s name, description of goods.

Invoice
Terms and conditions, buyer, the name of vessel, description of goods, fix code,
Fix code for each commodity in code book (different codes are assigned to chemical, textile,
pharmaceutical and other deptt.)
Letter about discrepancies is issued by SBP to the Ads and they are bound to correct these with
in 2 to 3 days.

I- Form
This form is used in case of imports. For this form 6 digits code is assigned with a prefix.
In this form following particulars are present
Indenter’s name, ITC No, 8 digits coding of commodity, origin of good, I D card number, Date
of issue, Place of issue, Origin of Goods, Name and Address of AD, Name of Beneficiary,
Description of goods, Quantity, Invoice Value, Port of Shipmen, Date of shipment.
At the backside of the E Form following particulars are verified.
Coding of transaction by AD/ SBP, Country to which exports are made, Country code,
Commodity , Amount in figure , Amount of words, Quantity , Mode of transportation.

Page 56 of 57
Over Due section

In case the export proceeds are not yet realized upto due date then after due date successes are
reported to FEOD on statement V-16 show because notice is issued to the concerned party. Then
if not any response then after 21st days final show cause notice is issued to bring proceeds which
are not clear.

DLTL/R & D Cell


This cell was established to facilitate the exporters of the country. When an exporter
exports some products, govt. gives subsidy to him to encourage exports from the country.
Procedure
There are some exporters associations in the country. First the exporter joins an association. The
association issues a certificate. Exporter submits following documents to his AD Goods
declaration form, E Form, Invoice, BL etc. AD will claim against all these documents. FEOD
after verifying all these documents, credit DLTL to the AD and AD will credit it to the exporters.
Eligible items for DLTL are; made ups, garments, and fabrics. 1, 2, 3, % of net value is given on
fabrics, made ups, and garments respectively.

Page 57 of 57

Оценить