SBP asks ADs to transfer EDS deductions directly to central bank

April 20, 2023 (MLN): The State Bank of Pakistan (SBP) on Thursday directed the Authorized Dealers (ADs) in foreign exchange to transfer the consolidated amount of Export Development Surcharge (EDS) deductions directly to the SBP through RTGS rather than depositing the same at the National Bank of Pakistan (NBP) with effect from May 10, 2023, the circular letter issued to the Chief Executives and Presidents of ADs.

Banks branches deducting EDS shall transfer the amount to their main RTGS branch on daily basis.

Earlier on January 4, 2003, SBP had prescribed the mode and manner of deduction of EDS and its deposit at the NBP.

“The main RTGS branch shall arrange to transfer the consolidated amount of EDS on a T+1 basis (T being deduction date) to SBP through RTGS for onward credit to EDF in an account titled as G12305-Export Development Fund RTGS, Number: 021992999990394 Mnemonic: FGEDFRTG,” the circular read.

Concurrently, banks shall report the details of individual exporters through SBP’s Data Acquisition Portal (DAP).

The circular further added that the banks shall specifically mention their unique reference number both in DAP filing as well as in Bank Credit Advice (BCA) filed with Customs authorities for reconciliation and reference purposes.

The aggregate number of individual transactions shall invariably match the amount transferred through RTGS.

Any instance of misreporting will be dealt with in accordance with penal provisions of the Banking Companies Ordinance, 1962, and the penalty scale issued thereof by the SBP.

SBP also advised banks to ensure meticulous compliance with aforesaid instructions.

 The undue retention of government funds by the banks will attract penalties as costs of funds at the penal rate of 1.5 times the SBP’s Ceiling Rates of retention dates.

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