June 26, 2003	Thursday	Rabi-us-Sani 25,1424

KARACHI, June 25: The SBP has asked all banks to take certain measures to check printing of fake cheques by unauthorized printers on sub-standard paper.

“Instances have been noted during the recent past that paper used in printing of cheque books and security stationary do not confirm to (the prescribed) specifications resulting in its misuse for fraudulent purposes,” says a circular issued by the SBP (BPD No 19).

The circular has asked the banks to take some measures to avoid this. It says the cheque books and security stationary should be printed on CBS-1 paper which must conform to international standards and CBS-1 specifications. This is necessary “to have protection against alteration and fraudulent attacks on the vulnerable parts of the cheques,” says the circular and gives a list of the chemicals to which the paper of cheque books are sensitive.

The circular also says that the paper of cheque books and other security stationary printed by any licensed agency other than Pakistan Security Printing Corporation (PSPC) shall require to be tested from PSPC before printing.

“Banks shall be required to submit a certificate each year to the effect that all cheque books and security stationary printed conforms to the above specifications.”

The SBP during its normal course of inspection of the banks “shall check the compliance of specifications and report of the laboratory tests where applicable.”

The banks have been directed to comply with these instructions within six months i.e. by end of December 2003. “Any violation of above measures after the said date” shall be penalized according to law.