KARACHI, May 26: The State Bank of Pakistan has raised penalty for late submission/misreporting of returns by banks/development finance institutions (DFIs).

A circular issued by the SBP here on Monday said it is brought to the notice of banks/DFIs that the periodical returns/information submitted by them to the State Bank are used as key inputs in offsite reviews and the MIS meant for senior management and other stakeholders. Timely receipt of those returns/information and accuracy of data/facts therein are thus extremely critical.

The circular said it has, however, been observed that some banks/DFIs fail to adhere to the timeline or to ensure accuracy/consistency of data/facts therein thereby leading to unnecessary delays in the preparation of reviews/MIS.

In order to encourage timely submission of returns and verification of data/facts therein, it has been decided to make some revision in the existing penalty scale for late submission/misreporting of returns to SBP.

The revised penalty schedule is given below:

A) FOR LOWER FREQUENCY RETURNS i.e. monthly, quarterly, half yearly and yearly.

a. Late Submission of Returns to different Departments of SBP.

1st Instance: Rs20,000 plus Rs1,000 per day counted from the prescribed timeline.

2nd Instance: Rs30,000 plus Rs2,000 per day counted from the prescribed timeline.

3rd Instance: Rs40,000 plus Rs3,000 per day counted from the prescribed timeline.

4th Instance: Rs50,000 plus Rs5,000 per day counted from the prescribed timeline.

b. Misreporting in Returns submitted to different Departments of SBP.

1st Instance: Rs30,000 plus Rs2,000 per day counted from the prescribed timeline set for revision.

2nd Instance: Rs50,000 plus Rs3,000 per day counted from the prescribed timeline set for revision.

3rd Instance: Rs100,000 plus Rs4,000 per day counted from the prescribed timeline set for revision.

4th Instance: Rs150,000 plus Rs8,000 per day counted from the prescribed timeline set for revision.

B) FOR HIGHER FREQUENCY RETURNS i.e. daily, weekly and fortnightly.

At a flat rate of Rs50, 000 and Rs2,000 per day

The SBP circular said the cycle will start each fiscal year afresh so as to keep the amount of penalties rationalised and encourage banks/DFIs to timely submit return or make revisions.