The Presidents/Chief Executives,
All Banks/DFIs,

Dear Sirs/Madam,

Upward Revision in Penalties for Misreporting/ Late Submission of Returns

It is brought to the notice of banks/DFIs that the periodical returns/information submitted by them to the State Bank are used as key inputs in offsite reviews and the MIS meant for senior management and other stakeholders. Timely receipt of those returns/information and accuracy of data/facts therein are thus extremely critical.

It has, however, been observed that some banks/DFIs fail to adhere to the timeline or to ensure accuracy/consistency of data/facts therein thereby leading to unnecessary delays in the preparation of reviews/MIS. In order to encourage timely submission of returns and verification of data/facts therein, it has been decided to make some revision in the existing penalty scale for late submission/ misreporting of returns to SBP. The revised penalty schedule is given below:

A) FOR LOWER FREQUENCY RETURNS i.e. monthly, quarterly, half yearly and yearly
a. Late Submission of Returns to different Departments of SBP
1st Instance	2nd Instance	3rd Instance	4th Instance
Rs. 20,000 plus Rs. 1,000 per day counted from the prescribed timeline	Rs. 30,000 plus Rs. 2,000 per day counted from the prescribed timeline	Rs. 40,000 plus Rs. 3,000 per day counted from the prescribed timeline	Rs. 50,000 plus Rs. 5,000 per day counted from the prescribed timeline
b. Misreporting in Returns submitted to different Departments of SBP
1st Instance	2nd Instance	3rd Instance	4th Instance
Rs. 30,000 plus Rs. 2,000 per day counted from the prescribed timeline set for revision	Rs. 50,000 plus Rs. 3,000 per day counted from the prescribed timeline set for revision	Rs. 100,000 plus Rs. 4,000 per day counted from the prescribed timeline set for revision	Rs. 150,000 plus Rs. 8,000 per day counted from the prescribed timeline set for revision
B) FOR HIGHER FREQUENCY RETURNS i.e. daily, weekly and fortnightly
At a flat rate of Rs.50, 000 and Rs. 2000 per day

It is important to clarify that the cycle will start each fiscal year afresh so as to keep the amount of penalties rationalized and encourage banks/DFIs to timely submit return or make revisions.

Please acknowledge receipt.