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CHAPTER XXII RETURNS OF ALL FOREIGN EXCHANGE TRANSACTIONS
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Authorised
Dealers should maintain proper record of all dealings in foreign
exchange in their books including transactions on non-resident accounts. 2. Submission of
Returns to State Bank. Authorised
Dealers should take utmost care in compilation of various
returns/statements prescribed in this as also other chapters so that all
transactions are correctly and duly reported. They should also ensure
that these returns/statements are invariably sent to the State Bank on
due dates. 3.
Basis and Procedure for Reporting of Transactions. The
system of reporting transactions is designed to compile figures on the
basis of actual entries in the currency accounts so that there are no
suspense items. Authorised Dealers should report transactions as per
following procedure: (i)
EXPORTS a)
Export bills drawn under irrevocable letters of credit. Transactions
in respect of export bills negotiated by Authorised Dealers should be
reported as purchases only at the time entries are made in the currency
account duly supported by Schedule 'A' and Forms 'E'. b)
Export bills drawn on collection basis. Sometimes
Authorised Dealers also purchase export bills drawn on collection basis.
Transactions relating to such export bills should be reported as an
outright purchase against "Exports" in the summary statement
after the transaction is put through the currency account on receipt of
advice of realisation of the export proceeds. (ii) OTHER RECEIPTS The
procedure indicated in sub-paragraph (i) (a) above should also be
followed with regard to D.Ds. and M. Ts. etc. In other words, purchases
in respect of D.Ds. and M.Ts. etc., should be reported only when the
transactions are put through the currency accounts. (iii)
IMPORTS a)
In case of import bills drawn under letters of credit, the foreign
currency accounts of the Authorised Dealers are debited at the time of
negotiation of documents by their foreign correspondents. Accordingly,
sales on account of import bills drawn under confirmed and irrevocable
letters of credit should be reported when the transaction is put through
the currency account on receipt of import documents and not on the basis
of retirement of bills by the importers. b)
All sales on account of imports are required to be supported by the
original copy of the Form
‘I’. In view of the time-lag between the date of receipt of the
import bills and the date of their retirement by the importers, it may
not be possible to submit original copy of Form
‘I’ duly signed by the importers. In such cases, Authorised Dealers
should fill in the quadruplicate copy of the Form
‘I’ and submit it alongwith the relevant schedule and the summary
statement. The original copy of the Form
‘I’ should be submitted after it has been signed by the importer,
which will be at the time of retirement of the bill. c)
Authorised Dealers will forward to the State Bank a monthly statement
showing particulars of the Form
‘I’originals of which have not been sent by them to the State Bank,
giving reasons for their non-submission. These statements should reach
the State Bank by the 7th of the following month and should bear running
serial numbers. d)
With regard to import bills received on collection basis, the
transactions will be reported on Schedule E-2 supported by
original Form
‘I’. (iv)
OTHER PAYMENTS Transactions
relating to D.Ds. and M.Ts. issued by the Authorised Dealers should also
be reported only at the time entries are made in the currency accounts. Non-resident
Rupee accounts of foreign banks and correspondents including barter
accounts should also be reported by Authorised Dealers in the manner
indicated in this para. Authorised
Dealers are required to give code numbers for all transactions
pertaining to receipts as well as payments whether under cash, loan,
credits or barter on the relevant prescribed forms as also in the
columns provided in the relevant schedules, excepting stubs given on the
right hand top of the schedules relating to "Period", "Authorised
Dealer" and "Currency" whose coding is done in the State
Bank. Separate
code lists are provided for the following items:
For entering code numbers on various schedules, the code lists mentioned below against each schedule should be referred to :
The
stubs earmarked for 'Department' are to be used in cases of transactions
relating to imports and invisible payments. All payments by Government
and Semi-Government agencies out of cash resources should be correctly
co-related with those given in Code-8 and code number given accordingly.
Where payments for imports or invisibles are made by private parties out
of cash resources, the Code No.501 of Code-8 will be given under
'Department'. Authorised
Dealers should ensure that the description of transactions given in the
relevant forms conforms to the nomenclature given in the Code Lists.
Coding should be done with extreme care. It is advisable to entrust the
Coding work to experienced and responsible members of the staff. To
guard against any possible misclassification, coding should be got
checked independently. For all amounts equivalent to Rs. 1 Lac and
above, the checking of codes should be done by supervisory staff. 5. Returns of Foreign Exchange
Transactions. Authorised
Dealers should report to the State Bank particulars of foreign exchange
transactions effected by them i.e. all outward and inward remittances
made whether through their accounts in foreign currencies or through the
Rupee accounts of non-resident banks. For this purpose, Authorised
Dealers should submit to the State Bank a summarized statement of their
transactions in each currency in which a position is maintained by them
and also summary statement of transactions effected on the Rupee
accounts of non-resident banks maintained with them for each month,
reaching the respective area office of the Exchange Policy Department by
the 3rd of the following month from branches and by the 10th from
Head/Principal Offices of Authorised Dealers. These
summary statements should be submitted on: "S-1" statement
for transactions in all foreign currencies (Appendix V- 100). "S-4" statement
for transactions on Rupee accounts of non-resident banks (Appendix V- 101). "S-5" statement
for transactions under Rupee barter (Appendix V- 102). "S-6" statement
for transactions in foreign currency notes (Appendix V- 103). 6. Compilation of
Summary Statements. i)
Each summarized statement will be an abstract of the Authorised Dealer's
ledger account and will consist of totals under specified heads. Opening
and Closing balances should be added making each summary a complete and
balanced statement. ii)
Authorised Dealers will complete one "S-4" statement
for each period in which consolidated figures of all non-resident bank
accounts maintained with them will be given. It will not be necessary to
complete a separate "S-4"
statement for each non-resident bank account. iii) The Head/Principal Offices of the designated banks
maintaining the barter accounts will incorporate their branch
transactions against the respective heads provided in the summary
statement. For this purpose, the branches of the designated banks will
forward every month copies of the related coded schedules, showing their
transactions under each barter agreement to their Head/Principal
Offices, which should prepare one consolidated statement and relative
schedules for each barter agreement on the basis of entries passed
through the respective barter accounts. In
the case of exports under barter arrangements, Authorised Dealers should
affix rubber stamp on the relative Form
'E' with the following narration: - “Commodity
Exchange Agreement with (Name of the Country) _________dated_________
” The
branches of the designated banks shall submit the relative forms and
schedules alongwith "S-5" statement
to the area offices of the Exchange Policy Department. iv) Statement "S-6"
is to be submitted in duplicate. 7. Supporting
Schedules and Forms of the Summary Statements. To
support the details of the totals entered in the summarized statements,
every statement must be accompanied by schedules and the relative forms
as indicated in the summarized statements. The schedules should be
compiled as under : RECEIPTS
& PAYMENTS SCHEDULES Schedules
"A-1", "A-2", "A-3", "J", "E-2", "E-3" and "E-4" are given
combined heading as follows:
Combined
headings have been provided to facilitate preparation of Schedules 'O' & 'P' in respect of
transactions of branches, which do not maintain independent currency
positions, but operate on the foreign currency accounts of the
Head/Principal Office/another branch and themselves submit unbalanced
Summary Statements "S-1" and "S-4" to their
area offices of the Exchange Policy Department. The procedure for
preparation of these schedules by the branches, which do not maintain
independent currency positions is given subsequently in this para. SCHEDULES
"A-1", "A-2" and "A-3" (APPENDICES
V-
104, V-
105 and V-
106): Purchase
of foreign currencies or debits to non-resident bank Rupee accounts
covering proceeds of exports from Pakistan will be listed on Schedules "A-1", "A-2" and "A-3" as follows: SCHEDULE
"A-1": In cases
where Form
'E' is certified against a purchase of foreign currencies or
debit to non-resident Rupee account, the transaction must be listed on a
relative Schedule "A-1" in
triplicate showing the number of the Form 'E' and the amount. SCHEDULE
"A-2": In cases
where no Form
'E' is certified at the time of purchase of foreign currency
or debit to non-resident Rupee account, the particulars will be listed
on Schedule "A-2" in
triplicate. Such cases will fall into two categories:
i)
Advance payments
for goods to be exported.
ii)
Part realisation
where the triplicate of the Form 'E'' will be lodged
with the State Bank at the time when final proceeds are received. If
an advance payment is received for an export, the Authorised Dealer must
make out an "Advance Payment Voucher" (Appendix
V-18). When the Form
'E' is ultimately made out and a deduction shown for the
advance payment, the date of the "Advance Payment Voucher"
must be stated on the Form 'E'. When
proceeds of exports are received and the Form
'E' is not available or in case of part realisation, a
voucher "Export Receipts: Form
'E' not attached" (Appendix
V- 111) must be completed. "Advance
Payment" and "Export Receipts: Form
'E' not attached" voucher must be listed on Schedule "A-2". SCHEDULE
"A-3": In cases
where 'E'
Form is certified against purchase of foreign currencies or
debit to non-resident Rupee account for re-export of imported goods the
transaction will be listed on Schedule A-3
in triplicate. Totals
of Schedules "A-1", "A-2" and "A-3" must be
cast and the total of "A-2" and "A-3" brought
forward to "A-1"
and grand total shown on "A-1"
which must agree with the amount entered on
the summary statement. Even in cases where there are no certified
Forms 'E' to be submitted
with the return, an "A-1"
Schedule should be completed showing a nil figure and giving the total
figure of "A-2",
making up the grand total on "A-1". For
every item on Schedules "A-1",
"A-2"
and "A-3"
a certified copy of Forms
'E' or a voucher, as applicable, must be enclosed.
Conversely, for every voucher or Forms
'E' enclosed, there must be an item on the appropriate
schedule. No Forms 'E' should be
enclosed with the returns against which no receipt is being reported on
the return. The forms and vouchers must be sorted in the order they are
listed. If more than one schedule sheet is used, the sheets must be
serially numbered and pinned together. While
reporting export receipts, separate schedules ( "A-1", "A-2" and "A-3") should be
prepared for receipts on account of exporters residing in the
jurisdiction of area offices of the Exchange
Policy Department other than the area office to which the
'Returns' are being submitted. Such schedules should be prepared
area-wise with one additional copy. The name of the area
office to which the schedules pertain should be prominently
written on the top thereof. Separate Schedules "A-1",
"A-2"
and "A-3"
must be attached to the summary statement relating to each currency. It
is not permitted, for example, to enter the Forms 'E' in U.S. dollars
and Pound Sterling on the same summary statement. SCHEDULE
"B" (APPENDIX V- 112) Purchases
of a currency against sale of other foreign currencies are to be listed
on Schedule "B". Separate schedule should be used for each
currency purchased. Exchange Policy Department area from where the
currency is purchased must be mentioned in specified column. The
schedule will be attached with relevant Summary Statement "S-1"
and total of the currency purchased must agree with the amount shown
against item 'Purchases against sale of other foreign currencies' on
receipt side of the Statement "S-1". SCHEDULE
"C" (APPENDIX V- 113) The
currencies purchased from Authorised Dealers or branches in Pakistan
maintaining a separate currency position must be listed on Schedule
'C'. A separate schedule should be made out for each currency
with its name written on the schedule and must be attached to the
relative "S-1" statements. SCHEDULE
"D" (APPENDIX V- 114) Foreign
currencies purchased from and sold to the State Bank must be entered on
Schedule "D" and totals
entered on the "S-I"
statements. SCHEDULES
"E-2", "E-3" and "E-4" (APPENDICES
V-
108, V-
109 and V-
110). Forms
relating to sales of foreign currencies to the public must be listed as
under: As with Schedules "A-1" and "A-2", separate
schedule must be made out for each currency and attached to the
respective "S-1", "S-4", "S-5" or "S-6" statement.
For every item listed in the schedule there must be a payment Form "I",
"T-1"
or "M"
as appropriate to the transaction and these forms must accompany the
relative schedules. No forms should be submitted which are not listed on
the schedules. SCHEDULE
"F" (APPENDIX V- 115) The
sale of a currency against purchase of other foreign currencies is to be
listed on Schedule 'F'. A separate
schedule should be used for each currency sold and the Exchange Policy
Department area to which the currency is sold must be mentioned in the
specified column. The schedule will be attached with relevant Summary Statement "S-1"
and total of sales in the schedule must agree with the amount entered
against item "Sales against purchase of other Foreign
Currency" on the sales side of "S-1"
statement. SCHEDULE
"G" (APPENDIX V- 116) The
currencies sold to Authorised Dealers or branches in Pakistan
maintaining a separate currency position must be listed on Schedule
"G". A separate schedule must be made out for each
currency with its name written on the schedule and must be attached to
the relative "S-1"
statements. SCHEDULE
"H" (APPENDIX V- 117) Currencies
bought against credit to non-resident bank Rupee accounts must be
entered on Schedule "H". A
separate schedule must be made out for each currency and attached in
duplicate to the relative summarized Statement
"S-1" and total amount of currency shown on the
schedule must agree with item 4 on the purchases side of the relative
summary statement, while total of Rupees must agree with the total of
items on credit side of "S-4" statement. SCHEDULE
"J" (APPENDIX V- 107) All
Forms "R" and "IRV" must be
listed on Schedule
"J" and a separate list should be made for each
currency. The schedules must be attached to the relative "S-1", "S-4", "S-5" or "S-6" statement
and the totals on the schedule must agree with those entered in the
statements. For every item appearing in the schedule, a "R" Form/"IRV" must be
attached. In the case of encashment of foreign currency instruments of
foreign missions in Pakistan, the name of the mission concerned, should
invariably be mentioned in Form "R"/"IRV" (Appendix V-118/Appendix V- 119).
Authorised Dealers must carefully note that Schedule 'J' is to cover
all receipts OTHER THAN EXPORTS. Export receipts are to be reported on
Schedules 'A-1'
and 'A-2'
and not on Schedule
'J'. "R"
Form is to be used for amounts over Rs.10,000/- or equivalent, for
purposes other than Family Maintenance Remittances and Exports. For
amounts of Rs.10,000/- and less received for purposes other than 'Family
Maintenance Remittances' and all amounts received as 'Family Maintenance
Remittances', Authorised Dealer will prepare one IRV for same currency,
country and purpose for one reporting period i.e. for the whole month.
The item will be listed individually and the total thereof will be
entered on relevant schedule 'J' of same
currency. In case the number of entries are large and more pages for IRV are required,
continuation sheets may be used. All inward remittances sent by
individuals from abroad in favour of individuals in Pakistan may be
treated as “Un-requited Transfers-Family Maintenance” unless
voluntarily disclosed by the beneficiary to be for some other purpose. SCHEDULE
"K" (APPENDIX V- 120) The
Schedule "K" is
not related to the Summary Statements "S-1", "S-4", "S-5" or "S-6" (See paragraph 13 ibid). SCHEDULE
"L" (APPENDIX V- 121) Debits
to non-resident bank Rupee account covering transfers to other
non-resident bank Rupee accounts must be listed on Schedule
"L" and the total amounts of Rupees should agree
with the total on "S-4"
statement. The schedule should be submitted to the State Bank
in duplicate with relative summary statements. SCHEDULE
"M" (APPENDIX V-122) Debits
to non-resident bank Rupee accounts against sales of foreign currencies
must be listed on Schedule "M" and
the total should agree with the amount entered on "S-4" statement.
For example, if U.S. dollars are sold to a U.S. bank against debit to
that bank's non-resident Rupee account, the U.S. dollar will be reported
against item No.4 on the sales side of the "S-1" statement
for U.S. dollars. The schedule should be submitted to the State Bank in
duplicate with the relative summary statements. SCHEDULE
"N" (APPENDIX V-123) The
closing balance of the non-resident bank Rupee accounts must be listed
on Schedule "N".
They should be grouped according to countries or currency groups. The
final total must agree with the amount entered for closing balance on
the "S-4" statement. SCHEDULE
"O" & "P" (APPENDICES V-124 & V-125) The
branches operating on Head/Principal Office/another branch account shall
prepare the summary statements with the supporting schedules i.e. A-1/O-1, A-2/ O-2, J/ O-3, E-2/P-2, EL2/EL3-P-2, E-3/P-3 & E-4/P-4 in quadruplicate.
The originals, duplicates and triplicates of these schedules, after
deleting O-1, O-2, O-3 and similarly after
deleting P-2,
P-3
& P-4
respectively, will be sent alongwith the summary statements and relevant
forms to the area office of the Exchange Policy Department. The
quadruplicates, after deleting A-1,
A-2,
J,
EL2/EL3,
E-2,
E-3
and E-4
from the heading, will be sent to the office of the Authorised Dealer
whose foreign currency account has
been operated. The Authorised Dealer whose currency account has been
operated upon will amend the Schedules O-1,
O-2,
O-3,
P-2,
P-3
and P-4
received from the branch by deleting such entries which have not been
booked during the reporting period and adding those of the previous
period which have been booked during this period. Particulars of such
entries must be listed in full i.e. relevant form number, code number
etc. The total of the amended Schedules O-1,
O-2,
O-3
will be listed on Schedule
"O" and the total of Schedules P-2, P-3 and P-4 listed on Schedule "P" for
each branch. The aggregates of Schedules "O" and "P" should
respectively match with item 7 of the purchases and item 8 of sales side
of the Summary Statements
"S-1" and item 6 of purchases and item 7 of sales
side of the Summary Statement
"S-4". In view of the extra work involved in
preparation of the supporting schedules in respect of branch
transactions, the Head/Principal Office may submit them to the State
Bank within seven days from the date of submission of the summary
statement/schedules. In other words, summary statements alongwith all
schedules, other than "O" and "P" and their
supporting Schedules O-1,
O-2,
O-3,
P-2,
P-3
and P-4
should be submitted within the existing time limit viz. 10th followed by
Schedules "O"
and "P"
by the 17th. SCHEDULE
"R" (APPENDIX V-126) Credits
to non-resident bank Rupee accounts covering transfers from other
non-resident bank Rupee accounts must be listed on Schedule
"R" and the total amounts of Rupees must agree with
the total on "S-4"
Statement. The schedule should be submitted to the State Bank
in duplicate with the relative summary statement. 8. Reporting of
Imports under Loans, Credit and Grants. SCHEDULE "LAC-NR"
(APPENDIX
V-127) This
schedule is to be used in respect of imports under loans/aid, credits
& grants where no remittances are involved. Branches of Authorised
Dealers through whom transactions are processed, would submit Schedule "LAC-NR" to the
respective area office of the Exchange
Policy Department alongwith the monthly Exchange returns. In
addition to the Schedule "LAC-NR"
a summary statement styled "Summary
Statement—LAC-NR" (Appendix V-128) which will
be an abstract of the amount allocated, opening balance, payments i.e.
utilisation and closing balance at the end of each month shall be
submitted by Head/Principal Offices duly supported by Schedule "LAC-NR" wherein
they will incorporate transactions of their branches as also their own.
There may be instances where payments for invisible items such as bank
charges, service charges etc., out of the loans/aid, credits and grants
may also be involved. Such transactions shall also be incorporated in Schedule "LAC-NR".
Invisible items should, however, be listed at the end of the schedule. SCHEDULES
"EL2"/"EL3"
(APPENDIX V-129) These
schedules will be prepared in duplicate in the following manner: (i)
Form
'I' in respect of imports under reimbursable loans and
credits under which payments are first made out of Pakistan's cash
resources and subsequently reimbursed by Loan/Aid giving agency shall be
listed on Schedule "EL2". (ii)
In cases of suppliers credit under which remittance of down payment is
involved, Schedule "EL3"
will be used. As
the transactions in cover of the items (i) and (ii) above effect the
currency accounts, the same will be reported in the relative
"S-1" statements but shall be listed separately on Schedule
"EL-2" or "EL3", as the case may be. Care
should be taken to ensure that items listed on Schedule "EL-2" or
"EL3" are not listed on Schedule "E-2". Separate
schedule should be used for each loan or credit. The name of the loan
should be clearly described on the schedule in the space provided
therefor. 9. Opening and Closing Balances. The
opening and closing balances are to be taken from the currency accounts
in the books of the Authorised Dealer. The abbreviations "Cr."
or "Dr." on the summarized statements are intended to signify: "Cr."
Credit balances with agents or correspondents abroad as shown by debit
balances in own books. "Dr."
Debit balances with agents or correspondents abroad as shown by credit
balances in own books. Balances
of customer's foreign currency accounts should be excluded from the
Authorised Dealer's balance. No
schedules are needed for the following items on the various statements
viz. All
that is necessary is to insert one total covering the relative period. Authorised
Dealers must not include their holdings of foreign currency notes in the
balances reported on the "S-1"
statement and they are to omit their transactions in currency notes
completely except where such transactions result directly in entries in
their currency accounts. Examples of these are when an Authorised Dealer
imports bank or currency notes from abroad paying for them by drawing on
the currency account and alternatively when an Authorised Dealer sends a
bunch of currency notes abroad to be credited to
its account. In the first instance the transaction should be
treated as the sale of currency and reported on Form
'M', which will
be included in Schedule "E-3".
In the second case, the Authorised Dealer will report the purchase of
the currency on Form "R"/"IRV"-Schedule
" J" attached with Statement "S-I".
As a consequence of this, if a traveller obtains US$900/- in travellers
cheques and US$100/- in currency notes as his travel quota, the
transaction must be included in Statement
"S-l" as the sale of US$900/- & the transaction
of US$100/- in notes will be reported on Statement "S-6". Authorised
Dealers must report to the State Bank purchases and sales of foreign
currency notes on the prescribed Statement
"S-6" which should be sent in duplicate duly
supported with relative schedules/forms. 12. Method of De spatch of Statements “S-1”,
“S-4” , “S-5” and “S-6” to the State Bank. When
the statements are being dispatched to the State Bank, they should be
put in separate envelopes or packages i.e. the "S-1",
"S-4"
and "S-6"
statements each separately. On the outside of the envelopes or covers
preferably on the back on the top left corner, the name of the
Authorised Dealer, the last date of the respective period, the type of
statement enclosed and the currency should be shown. Example: XYZ Bank,
Period ended 31-10-2001 "S-1", U.S. $. As
regards "S-5"
statement, the Authorised Dealers should report transactions under Rupee
barter agreements on relevant "S-5"
statements separately for each agreement. Thus, if there are four barter
commodity exchange agreements with (say) Poland, "S-5" statements
should be submitted separately for each one of them. Each such statement
should be sent to the area office of the Exchange Policy Department in
duplicate and clearly marked on the top right hand corner to the
following effect: TRANSACTIONS
UNDER BARTER/COMMODITY EXCHANGE AGREEMENT WITH......................................
DATED
................. Transactions
under barter agreement expressed in foreign currencies will be reported
on "S-1" statement. The
statements "S-1", "S-4", "S-5" and "S-6" should be
made as on the last day of each month. They should reach the State Bank
at the latest by the 3rd of the following month to which they relate
from the branches and by the 10th from the Head Offices of Authorised
Dealers. However, as the various statements are to be sent in separate
covers, those statements which are completed earlier may be sent
immediately without waiting for others which may still be under
preparation. 13. Operations on
Private Non-Resident Rupee Accounts. Authorised
Dealers must submit on Schedule "K"
a return of operations on private non-resident Rupee accounts
(i.e. other than Rupee accounts of non-resident banks which are reported
on "S-4" statement)
on quarterly basis reaching the area office of the Exchange
Policy Department by the 12th April, 12th July, 12th October
& 12th January. Only totals for all such accounts of credits and
debits passed during the period and of the balances are required. Total
amounts of debits and credits given on Schedule "K" must
agree with the aggregate amounts of Forms A-7 enclosed with the
schedule. Schedule
"K" consists of following categories:
i)
Private
Non-Resident Rupee Account of Indian nationals other than Banks Branches
and Correspondents.
ii)
Private
Non-Resident Rupee Account of Non-Indian nationals excluding Banks
Branches and Correspondents. 14. Record of Exchange Position. Authorised
Dealers are required to maintain record of their exchange position in
each currency in which they maintain an account as at the close of
business in the prescribed form (Appendix
V-130). The Exchange position proforma has been drawn up to
suit the different types of book keeping used in different banks and in
some cases some of the items will not be required. The main items which
may cause some difficulty are explained below. In the event of any
further difficulty being encountered, the Authorised Dealers should
refer the matter to the State Bank. (i)
OUTWARD BILLS PURCHASED (TEMPORARY ACCOUNT). Banks
have different methods of entering bills purchased. Some banks enter
these immediately into their currency account, in which case this item
will not be required. On the other hand some banks debit their bills
purchased to a temporary suspense account and transfer to their currency
account at the estimated time when the bill is payable. In the Exchange
position, the total in the suspense account must be entered under this
heading. (ii)
BILLS NEGOTIATED ABROAD CHARGED TO ACCOUNT AND RESPONDED TO BUT NO SALES
SHOWN IN EXCHANGE POSITION. This
is intended to cover bills which have been received after negotiation
abroad, entered into the currency account but not taken up by the
customers, when the person who has had the relative credit opened covers
the requirements by a forward purchase of currency. The amount of such
bills should be shown under the heading in order to off-set the effect
of outstanding forward sales included on the sales side on the final
position. (iii)
PROCEEDS OF BILLS: SALES BOOKED BUT NOT CREDITED IN LOCAL BOOKS. This
item is intended for those banks who have to remit currency to their
agents and who have booked the sale but have not entered the amount in
their currency accounts. For example suppose that a bank in Karachi has
to remit the proceeds of a Sterling bill to its London correspondent; if
the sale has been booked but owing to one reason or the other it has not
been able to pass entries in its books or issue the advice, then the
amount must be shown here. Again some banks if they issue drafts do not
credit their currency accounts until such estimated time as their
correspondents will receive the advice of issue, the amount is held in a
suspense account in the interval. Such amounts must be shown under this
heading. (iv) FOREIGN CURRENCY BILLS, MAIL TRANSFERS AND
TELEGRAPHIC TRANSFERS PAYABLE. Banks
receive from their correspondents advices of drafts in foreign currency
issued on them or Mail and Telegraphic Transfers to pay foreign currency
or its equivalent. This in fact will ultimately be a purchase of the
currency from the beneficiary of the transaction. If the Authorised
Dealer does not enter into its currency position the amount of draft or
transfer until it is actually paid, this heading will not be required.
If, however, it enters the amount in its currency account immediately on
the receipt of the advice with a contra entry to a suspense account, the
amount outstanding in the suspense account must be entered here. 15.
Statement of Outstanding Import Commitments. Authorised
Dealers are required to submit to the State Bank fortnightly statements
of outstanding commitments against cash resources in the prescribed
forms (Appendices V-131,
V-132,
V-133,
V-134)
as on 15th and last day of each month reaching the Joint Director
(General), Exchange Policy
Department, State Bank of Pakistan, Central Directorate, Karachi by the
22nd and 7th showing breakdown of figures with month-wise maturity
thereof classified allocation-wise as under: (i)
Specific allocation. (ii)
Private Sector imports. 16.
Returns of Blocked Accounts and Securities. Authorised
Dealers are required to furnish a yearly return in the prescribed form (Appendix V- 135) to the
State Bank at the end of each year ending 31st December, showing the
balance held by them in blocked accounts. This return should show the
country of residence of each account holder separately. Similarly, a
yearly return in the prescribed form (Appendix
V-136) showing the securities held by them on blocked
accounts should also be furnished. These returns should include the
balance and securities held in non-resident accounts blocked by orders
of the State Bank. Where there are no accounts or securities to report,
"NIL" return should be sent. The returns should be made as on
the 31st December, each year and should reach the State Bank not later
than 7th January.
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