The Presidents/Chief Executives,
All Banks

Dear Sirs,

IMPLEMENTATION OF COUNTRY WIDE NETTING OF CLEARING RESULTS

Please refer to our letters No. RTGS/282/65-2007 and No. RTGS/288/65-2007 dated August 13, 2007 and August 22, 2007 on the captioned subject.

In this connection the country wide netting of Normal Clearing, Normal Clearing Return, Same Day Clearing and Same Day Clearing Return has been implemented successfully and the system is effectively working since August 15, 2007.

Now as the third and final stage of implementation, it has been decided to Go-Live with the said system for country wide netting of Inter City Clearing and Inter City Clearing Return w.e.f. October 27, 2007 as per the following scheme:

Scheme

As per existing procedure of intercity clearing, the accounting cycle completes in two days i.e. at first day the cheques are presented at the banks (in their city) upon which they were drawn and the following accounting entries are passed at respective SBP-BSC Offices:

DR. Banks Account (Several Accounts)

CR. Receivable/Payable Account of SBPBSC Field Office (Lodging City)

On the next day the lodging city respond the entry as follows.

DR. Receivable/Payable Account of SBPBSC Field Office (Drawn City)

CR. Banks Account (Several Accounts)

Under the new scenario Inter City Clearing would become a two days product instead of three days. Accordingly the current accounting process that spreads over two days (as explained above) would be completed in a single day. An electronic intimation to the lodging city will be given on the same day and debits will coincide with this intimation (the returned cheques if any will be provided on the next day). Hence all the clearing batches under the new scheme which will originate on the day of implementation and afterwards in the field offices of SBPBSC would be settled at SBPBSC Karachi after being netted on country wide basis.

However during the first few days of implementation there will be some outstanding clearing batches that were originated on the previous days (prior to the date of implementation) and will subsequently required to be responded/settled at concerned SBPBSC Field Office (as is being done currently). This means that during first two/three days of implementation some of the clearing batches will require to be posted at concerned SBP-BSC Field offices and some on country wide basis at SBPBSC Karachi.

It may also be noted that from December 31, 2007 onwards the Special Clearing cycle processed for the collection of Government Receipts (i.e. on 31^st December, 30^th June and 30^th September etc.) will also be consolidated on country wide basis and will be settled in Karachi Office Only.

For any query please feel free to contact NIFT Regional Managers or Mr. Shahid Rabbani on his email address [email protected] phone # 021-2453409 or Mr. Muhammad Aslam on his email address [email protected], phone No. 021-2453434 mobile No. 0322-2047717.