STATE BANK OF

PAKISTAN

BANKING SERVICE CORPORATION

SBP BSC
The SBP Banking Services Corporation (SBP-BSC) was
established under the SBP Banking Services Corporation
Ordinance 2001 as an operational arm of central bank i.e.,
State Bank of Pakistan (SBP). The Bank is a fully owned
subsidiary of SBP and is mainly responsible to carry out the
major functions of SBP. This department is working all the
subsidiaries branches of State Bank of Pakistan.

CORPORATE STRUCTURE
Members of the Central Board of State Bank of Pakistan.
Managing Director, SBP-BSC.

Constitution of the Sub-Committees

Sub-committee of the Board on Human Resources
Sub-committee of the Board on Audit
Sub-committee of the Board on Building Projects

Functions of SBP BSC

Currency management
Banker to government
Payment system
Foreign exchange
Operations and adjudications
Export finance disbursement and monitoring
Operational role in monitory management
Internal audit control
Resources
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CURRENCY MANAGEMENT

Responsibility of handling receipt.

Supply of money.
Exchange of banknotes and coins.
Withdrawal of soiled notes from circulation and their
disposal.
Issuance of fresh currency.

BANKER TO GOVERNMENT
Act as banker to provincial and central government under the act
of 1956.
NBP work as a agent of SBP BSC.
Collection of income tax, sales tax, central excise duty, customs
duty etc on behalf of the government.
Operational work related to public debt such as Pakistan
investment bonds , fedral investment bonds, treasury bills.
sale, encashment and profit payment of various instruments of
national savings schemes launched by the Central Directorate of
National Savings are also carried out by the offices of SBP-BSC

PAYMENT SYSTEM
promoting an efficient payment and settlement systems in
the country .
Pakistan Real Time Inter-bank Settlement Mechanism
(PRISM) for large value low volume inter-bank fund
transfers and settlements
NIFT collects the financial instruments and after processing,
provides every banks position for clearing and settlement to
BSC .

Foreign Exchange Operations and

Adjudication
Foreign Exchange Operations Department (FEOD) of BSC
is responsible for day to day operation of policies issued by
Exchange Policy Department of SBP.
Responsibilties of FEOD
Import and exports.
Commercial remittances and verification of exporters.
performance through statement.
Computerization of data.
Subsidies support by the govt. for imports and exports.

Export Finance-Disbursement and

Monitoring
Basic objective is to boost exports.
Short term and long term loaning to the exporters to meet
their obligations.
Commercial banks provides loan with 11 % mark up.
rate of return under these export finance schemes is lower
as compared to the market rate.
Sometimes commercial banks also refinance their money in
exports under SBP for 48 hours.

OPERATIONAL ROLE IN
MONETORY MANAGEMENT
Current Accounts and Other Deposit Accounts of
commercial banks are managed by SBP-BSC to maintain
their Cash Reserve Ratio (CRR) and Statutory Liquidity
Requirement (SLR).
For the monitory development purposes, SBP BSC also
check CRR and SLR on daily basis of all commercial banks.
Support to main office in auction of treasury bills, Pakistan
investment bonds etc.

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Internal Audit and Controls

examine and evaluate the adequacy and effectiveness of
internal control systems
review the effectiveness of risk management procedures and
methodologies
assess the management & financial information systems
including electronic information system in various
operations and activities of BSC
Audit briefs identify irregularities along with a detailed
report

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HUMAN RESOURCES
cognizant of the importance of its human capital
continued with its efforts for enhancing the internal capacity
through trainings
employee development programs administered by NIBAF
rationalization the human resources by providing honorable
exit opportunities in the shape of Voluntary Separation
Schemes

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Local Credit Advisory

Committees
a forum where the stakeholders of SBP and SBP-BSC can
discuss their problems
Seek solution at the local level
Chief manager works as a laison
In order to apprise the rural population about credit schemes
of SBP and to get feedback on other banking facilities, Chief
Managers visited 55 small towns where it was observed that
most of the problems faced by the stakeholders related to
mark-up rate on refinance, agriculture credit, and payment of
utility bills.

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REVIEW

Subsidiary department
Management functions
Policies Implementation
Control on internal and external
Relationship between SBP and
stakeholder

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