KARACHI, Aug 30: State Bank issued fresh currency notes worth Rs112 billion in Ramazan for general public, but most of the notes either reached markets or were taken away by banks’ high-ups.
The State Bank said it issued more fresh currency notes this year than last year, but the demand was higher.
Now members of parliament and high-ranking police officials have started approaching banks for fresh currency notes which might create problems for the State Bank.
Last year the SBP had issued new notes worth Rs96.93 billion, but the demand is still on the rise.
Most of the branches refuse to pay new notes, saying they have no new currency notes. Either they have exhausted the notes or have not been supplied yet.
However, the open market has fresh currency notes in bulk and people were found buying new notes with significantly higher premium and this business is thriving a few hundred yards away from the head of office of the State Bank.
It was observed that bank officials and some insiders in the State Bank become a channel for supply of fresh currency notes to the market. Sale of currency notes is illegal but the business is flourishing at many places, particularly at Boulton market andSaddar.
The premium varies on notes of different denominations which is in the range of Rs250 to Rs400 per pack of 100 notes of Rs10, Rs20, Rs50 and Rs100.
State Bank said it had issued Rs10 denomination notes worth Rs4.1 billion, Rs20 notes worth Rs2.1 billion, Rs50 notes worth Rs3 billion, Rs100 notes worth Rs9.8 billion, Rs500 notes worth Rs17.2 billion, Rs1000 notes worth Rs75.6 billion andRs5000 notes worth Rs100 million.
The demand for fresh currency notes is not new, but it was mostly related to rural areas where these are required at the time of marriage ceremonies.
However, the issue of fresh currency notes in bulk like 100 billion has changed the entire scenario and it created a new culture along with a new fresh currency-making business.
State Bank wants to facilitate common people on Eid, but many players highjack this facility for business or personal use.