KARACHI: The State Bank of Pakistan said on Thursday that in the interest of general public as well as banks, it has been decided to prescribe additional security features for cheques provided by banks to their account holders.

For paper security, banks are required to ensure that all cheques must carry bank’s logo or name as a standardised water mark visible only if the cheque is placed against a light source.

Further, the paper used for cheques must contain at least one Invisible Ultraviolet (UV) security feature, such as UV fibers, UV Hi-Lites or any other.

The space on the cheque allocated for the amount and name of payee must contain anti-forgery ink. The name of the account holder should also be printed using the bleed through technology.

Banks and DFIs will ensure availability of Instant Verification (IV) markers at their cash counters as well as at all clearing units and devise a policy whereby authenticity of cheques drawn for an amount over a specified limit must be subject to verification by IV marker.

The limit may be different for cheques being paid over the counter and via clearing.

The fraud perpetrated through tempered or fake cheques can be curtailed to a greater extent by improving skills of staff involved in clearing of cheques

The standard operating procedures relating to requisition, procurement and transmission of security stationary should be approved by board of directors.

Pakistan Banks Association in consultation with SBP will develop criteria for empanelment of printers eligible for printing of security stationary.

After formation of the said panel banks and DFIs will get their security stationary printed only from the printers enlisted on PBA panel. Banks may incorporate additional security features in their cheques provided to depositors.

The SBP instructions will take effect from June 30, 2014. The stock of cheques issued till enactment of the instructions would, however, be considered valid.