State Bank Clears the Air Regarding Misprinted Rs. 1,000 Banknotes

The State Bank of Pakistan (SBP) on Wednesday said that misprinted banknotes, received by the public or commercial banks can be claimed in exchange for fit banknotes from any office of Banking Services Corporation (SBP-BSC) across the country under the State Bank of Pakistan (Note Refund) Regulations, 1963. A day earlier, a bank branch in Karachi reportedly received a few currency notes of Rs. 1,000, which were misprinted from one side. The branch manager of the bank posted a video of these currency notes that went viral on social media. In its clarification today, the central bank said that the production processes of such large magnitude are prone to some imperfections. Therefore, there is a possibility that despite all quality checks, certain pieces of misprinted banknotes may end up with banks or the public. However, such banknotes can be exchanged at SBP-BSC counters. It further highlighted that SBP’s printwork, namely Pakistan Security Printing Corporation (PSPC), has a robust system of quality control to segregate and to prevent the flow of misprinted banknotes into public circulation. Some of the notes are misprinted occasionally but the same are detected through the checks and balances put in place. However, no matter how robust and effective a manmade system is, it’s still susceptible to a margin of error, whether here or elsewhere including the developed jurisdictions, it added. SBP said that the instant case involves the discovery of only ten misprinted banknotes in the consignment of NBP’s Model Colony Branch, which is minuscular as to be immaterial when compared with total number of notes that are printed and circulated in the country.  However, the internal controls are being further strengthened to avoid the recurrence of such instances in the future.