SBP instructions for enhancement of security features in chequesMarch 31, 2014
Karachi: State Bank of Pakistan in a circular to all scheduled banks and MFBs has asked about enhancement of security features in cheques. Referring to the CPD Circular No.1 dated January 30, 2014 on the subject matter, the SBP said in order to ensure smooth transition of the industry to the newly prescribed security features and owing to clarifications sought by the printers, following amendments have been introduced in the aforementioned circular:
Para 2 of the referred circular has been amended to be read as follows: “For paper security banks are required to ensure that all cheques must contain printer’s logo or name as a Watermark. The Watermark can be single or multi tone. However, it must be ensured that Magnetic Ink Character Recognition (MICR) readability is not adversely affected by such Watermarks. Further, the paper used for cheques must contain at least one Invisible Ultraviolet (UV) security features such as UV fibers, UV Hi-Lites or any other.”
It is elaborated that the bleed through technology mentioned in Para 4 of the subject circular was introduced to curb instances of cheques frauds done through scrapping. Therefore, it is clarified that at least the MICR code line shall be impact printed using the bleed through technology. While the usage of bleed through technology on any other field of the cheque is optional for the banks, it must be ensured that bleed through feature in the MICR code line or any other place is not laser printed. It is further clarified that the NOC to import CBS-1 paper must be acquired as per the import policy.