The Presidents / Chief Executives
All Commercial/Microfinance Banks

Exchange and Demonetization of Decimal Coins

Dear Sir/Madam,

In pursuance of amendment in Section 6 of the Pakistan Coinage Act, 1906 (III of 1906) issued under Gazette Notification No.F.9(18/2012-1Legis, dated March 14, 2013, and in terms of Section 15A of the Pakistan Coinage Act, III, 1906, Federal Government vide Notification No. F.3(4)IF-IV/2007, dated September 19, 2013, has notified that coins of paisa 1, 2, 5, 10, 25 and 50 will cease to be legal tender as per following schedule:

a) Discontinue issuance from the offices of SBP BSC/Commercial/Microfinance Banks with effect from September 30, 2013.
b) Last date to exchange by the public till September 30, 2014.
c) Cease to be Legal Tender on October 1, 2014.

2. Banks are advised to discontinue issuance of decimal coins from their branches with effect from September 30 2013. These decimal coins shall be exchanged till close of banking hours on September 30, 2014. Banks are also advised to follow the following schedule for surrendering and reporting the exchanged/demonetized decimal coins to SBP BSC Field Offices:

A. Surrendering of decimal coins stock exchanged/collected by September 30, 2013

(i) Branches of banks/NBP Chests/Sub-Chests, in cooperation with SBP BSC field offices, should ensure that they surrender their existing stock of decimal coins (collected until September 30, 2013) by November 28, 2013 to the nearest SBP BSC field office.

(ii) For awareness of public, branches of banks/ NBP Chests/Sub-Chests should display posters/banners at visible places for exchange of decimal coins upto September 30, 2014.

B. Reporting of decimal coins exchanged/collected by September 30, 2014

(i) Branches of banks/NBP Chests/Sub-Chests will report the balances collected by September 30, 2014 to their regional head office on the same day after the close of business.

(ii) The regional head office of the banks/NBP Chest/Sub-Chests will report the branch-wise balances to the nearest SBP BSC field offices and send endorsed copies thereof to their concerned head office through fax/email on October 1, 2014.

(iii) The Head Office of concerned bank will forward consolidated balances along with list of branch-wise position to the Director, Currency Management Department (CMD), SBP BSC Head Office, Karachi on the same day i.e. October 1, 2014 as per contact details provided at Para 4 below.

(iv) The SBP BSC field offices will acknowledge receipt of the reported balances by the regional offices of the banks. And CMD, SBP BSC, Head Office, Karachi will acknowledge head offices of the banks on October 2, 2014. Any queries can be referred to CMD, SBP BSC, Head Office, Karachi.

C. Surrendering of stock of decimal coins reported on September 30, 2014
Branches of banks/NBP Chests/Sub-Chests will surrender the stock of decimal coins reported on September 30, 2014, under Para 2-B above, to their nearest SBP BSC field office until October 7, 2014.

D. Exchanging the value of decimal coins after September 30, 2014

(i) The State Bank of Pakistan/SBP BSC (Bank) will neither exchange nor be liable to pay any value of decimal coins to any person or a bank after the demonetization deadline of September 30, 2014.

(ii) SBP BSC field office shall credit the value of the surrendered decimal coins to the account of the banks maintained with them.

3. You are requested to issue the necessary instructions to your respective branches to ensure meticulous compliance of the aforementioned timelines for the exchange of decimal coins by the general public, and report/surrender decimal coins to SBP BSC field offices within the stipulated deadline.

4. For any queries/issues regarding surrendering of decimal coins to SBP BSC field offices, please contact the following phone numbers and email address:

SBP BSC (Bank), Head Office, Karachi
Phones: 021-99212491, 021-32455463, 021-32455470
Fax: 021-99212399
Email: [email protected]

5. Please acknowledge receipt.