KARACHI: The State Bank of Pakistan (SBP) has issued serious warning to authorised dealers for not discharging their due responsibilities in catering to the legitimate foreign exchange needs of individuals and asked them to deliver services on an urgent basis.

In a circular issued to all authorised dealers (banks) on Friday, the SBP noted that they are not discharging their due responsibilities despite issuance of clear instructions and holding various meetings.

“Foreign exchange needs of individuals generally relate to education, medical and travel abroad. Further, individual customers face difficulties when they approach authorised dealers for withdrawal of cash foreign exchange from their foreign currency accounts,” the central bank said.

The SBP has recently largely simplified requirements for remittances relating to medical treatment and education abroad with a view to facilitate the general public.

It directed banks to ensure offering of forex services for travel, education and medical abroad by Dec 7 from all of their branches authorised to deal in foreign exchange. They should also put in place the requisite infrastructure, systems and processes for efficient delivery, it said.

The State Bank also demanded that the officials dealing with customers for forex services should be adequately trained and made acquainted with the existing foreign exchange rules and regulations.

“Authorised dealers should appoint a focal person at head or principal office level in relation to handling FX services,” it said, adding that the particulars of such nominees (including their contact numbers) should be intimated to the State Bank.

The central bank also asked them to take all necessary measures to create awareness among their customers about FX services and make available all the relevant details of the services on their official websites.

“The contact or call centres of authorised dealers should have adequate capacity in relation to appropriate handling of queries and complaints related to FX services,” said the SBP.

It said that in order to facilitate the FCY account holders and customers, authorised dealers should ensure adequate availability of foreign currency notes, especially the US dollar, euro, Saudi riyal and UAE dirham, for meeting their customers’ requirements.

Authorised dealers can always replenish their stock, either by purchase from their counterparts or by import from their overseas branches and correspondents, said the SBP.

The central banks also advised them to ensure compliance of the instructions, and that strict action would be taken against the banks concerned in case of failure.

Published in Dawn, December 5th, 2015