CURRENCY MNAGEMENT UNIT (CMU)

OVERVIEW
This Department deals with the managing of currency. It ensures that each bank must not have shortage
of cash at any time. This unit also has focus on volume of notes or coins in circulation. Claims and
destruction of forged notes is also a function of this unit. Volume of notes in circulation and deficiency
of old notes also replace by fresh notes issue by SBP BSC. This unit also takes action in case of any
complaint with respect to fresh cash. CMU is playing an important role in SBP BSC.
Role of Currency Management units
Issuing new notes and managing its circulation
Forges notes dealing and its disposal
Forecasting the demand of currency
Transfer of funds to chest offices
Note exchange facilities and anti counterfeit measures
Withdrawal of soiled notes from circulation and their destruction
On site inspection of commercial banks
It directs the working criteria to commercial banks for circulation of notes
Structure of CMU
Remittances
Cash monitoring and examination
Fresh cash issuance
Forged notes processing
Claim counter/clearly payable notes
Remittances
It means physical movement of funds from one place to another place. It includes both inward and
outward movement of cash.
Remittances (chest Basis):
Designated branches of National Bank of Pakistan (NBP) perform the functions of SBP BSC where there is
no branch of SBP. NBP has the authority to deal on behalf of SBP BSC.
Sub-Chest Branch:
NBP branches at Tehsil level on behalf of SBP BSC are known as Sub-Chest Branches. Sub-Chest Branches
are also authorized by SBP BSC to deal on its behalf.
Remittances (intra field offices):
There are 16 field offices of SBP BSC in Pakistan and remittances are also occurred among these fields.
Cash Monitoring and examination
The major operations performed by cash Monitoring and examination are:
To implement the clean note policy
To ensure only clean notes are to be issued to public
To ensure only clean notes remain in circulation
SBP BSC sends its inspection teams for onsite inspection to check whether the commercial banks
are dealing with their customers fairly and issuing healthy notes.
Speedy disposal of soiled notes
Fresh cash issuance
Head office Karachi (HOK) make policies regarding the issuance of new notes. SBP BSC issue the new
notes to general public as per the policies made by HOK. Commercial banks also have the facility of
getting new note from SBP BSC. Head office Karachi (HOK) also gives the distribution plan for issuance of
fresh cash.SBP BSC Sometimes they also provide limit to commercial banks regarding the issuance of
new notes. Variations may be made in different cities.
Documents required for fresh notes:
Request letter
Report how many fresh notes consumed
Report where fresh notes are to be used
Forged Notes processing
Counterfeit money is the currency that is produced without the legal sanction of the state or
government. Counterfeit government bonds are the bonds that are produced without legal sanction of
government. The commercial and the other banks have been instructed to send forged notes coming
into their possession to the nearest currency officer or to the Government.
Forged notes are processed by SBP BSC and it also takes measures to avoid it.
Forged notes can be identified from these two sources
During operations in SBP BSC
During general public dealings that are identified by police
The police has also departmental instructions to report immediately to the currency officer and the
investigation will be conducted by the currency officer.
Claim counter/clearly payable counter
Clearly payable counter:
Soiled notes are presented at clearly payable counter for exchange. Previously, there are two counters
ahead of clearly payable counter.
A Counter: that deals with notes denominated up to Rs.100.
B counter:
That deals with the Notes denominated in Rs.20, 50 and 100
Now these two counters are merges into one counter i.e. clearly payable counter. This counter performs
the function of these counters also.
These notes are paid on the same day through one window operation to the presenter if:
Security features are presented
Note is not fully soiled
And 2/3 part of the note is in good condition
Notes are signed by the following authorities
Denomination Prescribed officer ( passing authority)
Upto Rs.10 Assistant Treasury officer
From Rs.20 upto Rs.100 ATO & TO
Rs.500 and Rs.1000 TO & senior Assistant currency officer or two
Authorized treasury officers
Rs.5000 TO & OG-3

Claim counter/defective counter:
Notes are claimed if:
Notes that are oily, burnt or washed
Security features are not visible
Eaten by insects
2/3 part of the note is not in good condition
Note is not less than 50%
Portrait of Quaid-e-Azam is destructed intentionally
Full cut
Claim notes are signed by the following Authorities
Denominations Prescribed officer ( passing authority)
Upto rs.50 TO & SACO
Rs.100 TO & ACM/DCM(cash)
Rs.500 and Rs.1000 TO & CO
Rs.5000 CO/DCM and CM

Three days are given for new issue to the presenter. If the presenter doesnt claim within a month to
collect it then it is send by post and the post expenses are deducted from the original amount.