The Presidents/Chief Executives
All Banks including Islamic Banks

Dear Sir/Madam,

Clearing of Cheques/Other Instruments By Banks Pertaining to Government Receipts Through On-Line System By the Main Branches of City

It has been observed that the intercity clearing of cheques/other instruments pertaining to government receipts is undertaken through NIFT System, whereby cheques/other instruments are physically sent to the issuing branches. After clearance of the subject cheques/other instruments from issuing branches, the amount is credited in the resident government accounts. This process takes number of days for realization of the government receipts.

2. In view of the above and in order to streamline the process and reduce turnaround time for timely realization of government receipts, following procedure will be applicable with effect from September 15, 2014.
3. The banks shall specify on-line main branches in the cities where SBP BSC Offices are operating for on-line clearance of cheques/other instruments pertaining to government receipts. Such information would be provided to the office of the Director Accounts Department, SBP BSC Office, Karachi.
4. The NIFT/SBP BSC will lodge cheques/other instruments, drawn on bank branches outside the city, pertaining to government receipts in normal clearing by inserting the appropriate local clearing stamp. The NIFT will deliver these cheques/instruments separately bundled for ease of identification to the banks’ specified main branches.
5. The cheques/other instruments received for government collection would be cleared by the designated main branches of the banks through using on-line system instead of sending instruments physically to the concerned branch.
6. The banks are advised to make necessary preparations for adopting the given procedure and to make logistic arrangements with NIFT for identifying their main branches within the given time line.

Please acknowledge receipt.