KARACHI – Customers getting misprinted banknotes from a public sector bank in Karachi last day has raised many questions. Before this incident, majority of the people believe that there is no possibility of getting defective banknotes from any bank. Such incident is also highly unlikely as the SBP has a robust mechanism of printing banknotes on security papers with a number of features to distinguish these from the fake ones. People are also concerned that how and from where such banknotes can be exchanged.
Question: In the video, it can be seen that one side of the banknote is printed. If any customer takes the complete packet, and he/she finds about the misprint, where can such a customer exchange misprinted banknotes? After a period of one week or so, will the concerned bank compensate the customer?
Answer: The misprinted banknotes, received by the public or commercial banks can be claimed in exchange for fit banknotes from any Office of the State Bank of Pakistan, Banking Services Corporation (SBP-BSC) across the country under the State Bank of Pakistan (Note Refund) Regulations, 1963.
Question: Has there been any previous such incidents where a half print banknote was delivered to a commercial bank?
Answer: Production processes of such large magnitude are prone to some imperfections. Therefore, there is a possibility that in-spite of all quality checks, certain pieces of misprinted banknotes may end up with banks or public. However, as explained above, such banknotes can be exchanged at SBP-BSC counters.
Question: What is the process to ensure the quality of fresh banknotes? How it is ensured that banknotes are free from such defects? Does the printing and eventual supply of a misprinted banknote to banks raises questions on the efficacy of the system?
Answer: SBP’s print work, namely Pakistan Security Printing Corporation (PSPC), has robust system of quality control to segregate and to prevent the flow of misprinted banknotes into public circulation. Some of the notes are misprinted occasionally but the same are detected through the checks and balances put in place. However, no matter how robust and effective a manmade system is, it’s still susceptible to a margin of error, whether here or elsewhere including the developed jurisdictions. The instant case involves the discovery of only ten (10) misprinted banknotes in the consignment of NBP’s Model Colony Branch, which is minuscular as to be immaterial when compared with total number of notes that are printed and circulated in the country. However, the internal controls are being further strengthened to avoid recurrence of such instance in future.
