State Bank of Pakistan

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

SPECIAL CONVERTIBLE RUPEE ACCOUNTS

Attention of Authorised Dealers is invited to F.E. Circular No. 15 dated the 11th February, 1992 on the subject noted above.

2. We have received various queries from the Authorised Dealers about the operation of these accounts which are clarified below:-

Query

i) Whether Current, Savings and Fixed accounts ban be opened in the names of eligible customers?,

ii) Will the return on PLS/account be the same as the corresponding existing PLS Accounts in Pakistan

iii) Are the commercial banks allowed to issue cheque books on Special Convertible Rupee Account

iv) Who will bear the risk of exchange?

v) Can encashment proceeds of travelers cheques be credited to these accounts?

vi) Is issuance of FEBCs and DBCs to the debit of these accounts Permissible?

vii) Whether transfer of funds from Foreign Currency Accounts maintained in Pakistan into   these accounts is permissible?

viii) Whether deposit/withdrawal in the shape of currency notes is permissible

ix) Payment within the country from these accounts are to be made only in Pakistan Rupees

x) Whether Travelers Cheques can be issued to the account holder or to the third parties by debit to these accounts?

Clarification

Yes

Yes

The banks may follow the normal banking practice in this regard.

It is obvious from F.E. Circular No. 15/1992 that exchange risk will be borne by the customer

Yes.

FEBCs and DBCs can be issued by debit to these accounts. However, surrender in USS in the prescribed manner in respect of issue of U.S. Dollar Bearer Certificates will have to be made

In the absence of clearing system with respect to foreign currency accounts in Pakistan, such transfers are not possible

Yes, at the exchange rate obtaining on the date of deposit/withdrawal.

Payments within the country from these accounts can be made in Pakistan rupees as well as in foreign exchange at the current rate, at the option of the account holder.

Yes, by debit to the account at the current rate of exchange.