According to SBP circular No IDD/ 117/7(Dem-Coin) 2013 issued on Tuesday, 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 3 (4)IF-IV/2007, dated September l9, 2013, has notified that coins of paisa 1, 2, 5, 10, 25 and 50 will cease to be legal tender in three phases.
As per announcement issuance of these coins will be discontinued from the offices of SBP BSC/commercial/microfinance banks with effect from September 30, 2013. While, general public can exchange these coins till September 30, 2014 and coins of paisa 1, 2, 5, 10, 25 and 50 will cease to be legal tender as on October 1, 2014. SBP has also advised banks 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 schedule for surrendering and reporting the exchanged/demonetised decimal coins to SBP BSC field offices.
Branches of banks/NBP chests/sub-chests, in co-operation 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. For awareness of public, branches of banks/ NBP chests/sub-chests should display posters/banners at visible places for exchange of decimal upto September 30, 2014.
Branches of banks/NBP chests/sub-chests will report the balances collected by September 30, 2014 to their regional tread office on the same day after the close of business.
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 therefore to their concerned head office though tax/email on October" I, 20 14.
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 ie October 1, 2014. The SBP BSC field offices will acknowledge receipt of the reported balances by the regional offices of the banks and CMD, SBP DSC, Head Office, Karachi will acknowledge head offices of the banks on October 2, 2014.
In this regard any query can be referred to CMD, SBP DSC, Head Office, Karachi. Branches of banks/NBP Chests/Sub-Chests will surrender the stock of decimal coins reported on September 30, 2014, to their nearest SBP BSC field office until October 7, 20 14.
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 demagnetisation deadline of September 30, 2014. SBP BSC field office shall credit the value of the surrendered decimal coins to the account of the banks maintained with them.
SBP has advised all banks to issue the necessary instructions to 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.