KARACHI, Sept 6: The State Bank has asked all banks and non-bank financial institutions (NBFIs) to develop a standard procedure within 30 days to obtain satisfactory confidential reports of their would-be employees.

“Instances have come to the notice of State Bank where banks/NBFIs appointed persons despite their involvement in fraud and forgery cases with their previous employers,” says a circular (BPD 25) issued on Friday. “This appears to be due to the non-availability of standard procedure amongst financial institutions for ascertaining the antecedents of persons seeking entry in bank/NBFI service.

“In order to discourage the entry of such persons in the banking industry in future, all banks/NBFIs are advised to develop a standard procedure within a period of days,” the circular says. It says that the procedure should inter alia include “obtaining of satisfactory confidential reports in writing on the integrity, suitability etc., of the applicant, from the former employers.”