KARACHI (June 26 2003) : The State Bank on Wednesday said that instances have been noted during the recent past that paper used in printing of cheque books and security stationery do not conform to CBS-1 specifications, resulting in misuse for fraudulent purposes.
In order to protect the interests of the depositors, and public at large, and to avoid printing of spurious cheques by unauthorised printers on substandard paper, it has been decided that banks will take some measures immediately prescribed by the State Bank.
Cheque books & security stationery should be printed on CBS-1 paper and must conform to International Standards & CBS-1 specifications to have protection against alteration and fraudulent attacks on vulnerable parts of the cheques, said the circular.
The State Bank said that to maintain international standard the paper should have chemical sensitivity to following chemicals:
============================================================ i) Oxalic Acid 5 percent xi) Phenol ii) Sulphuric Acid 2.5 percent xii) Oxitol iii) Hydrochloric Acid 2N xiii) Petroleum Ether iv) Sodium Hydroxide 5 percent xiv) Acetone v) Calcium Hypochlorite xv) French Corrector vi) Peliken Eradicator xvi) Acetic Acid vii) Toluene xvii) Trichlroethylene viii) Ethanol (Alcohol) xviii) Carbon Tetra Chloride ix) Benzene xix) Chloroform x) Petrol xx) Butyl Acetate ============================================================
The paper of cheque books and other security stationery, if printed by licensed security printing agencies (other than Pakistan Security Printing Corporation (Pvt) Limited (PSPC) shall require to be got tested from PSPC before printing of cheque books and other security stationery.
Banks shall be required to submit a certificate each year, to the effect that all cheques books and security stationery printed conforms to the above specifications, to Directors Accounts Department, State Bank of Pakistan within 15 days from the end of each financial year (July/June).
State Bank of Pakistan during its normal course of inspection of the banks will check the compliance of specifications and report of the laboratory tests, where applicable.
SBP shall also, on sample basis, may carry out occasional laboratory tests for the cheques books and security stationery to ensure that the same are in conformity with the International Standards and as per above specifications.
Banks are directed to comply with the above instructions within a period of six months ie by 31-12-2003.
Any violation of above measures after said date shall attract the penal provisions under Banking Companies Ordinance, 1962, said the circular.