Banking OperationsDay-1 session-1

Introduction

General overview- Accounts Department Maintenance of government accounts

Financial statements

Budget

Operational activities at Banking DepartmentBanker to the government

SBP BSC acts as a banker to Federal and Provincial governments under its obligatory requirements under clause 17 & 21 of SBP Act 1956 & SBPBSC Ordinance 2001.

Government transactions are carried out in terms of the agreement entered into with the Governments

At places, where there are no offices of the SBP BSC (Bank), Government work is conducted by branches of the National Bank

Banker to the banks

Banker to the Government

Collection of government revenues

Government payments

Remittances facility

Acceptance of securities/valuable articles

SBPBSC maintains the Principal Accounts of Central as well as provincial Governments

It has put in place a well structured arrangement for revenue collection as well as payments on behalf of Government across the country.

A network comprising the Public Accounts Departments and branches of Agency Bank carry out the Govt. transactions

Banker to the Banks

Maintenance of current accounts

Remittances facilities

Safe Deposits

Main functions of the Govt. Accounts Division

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• Managing/monitoring/consolidation & reporting of accounts

• Monitoring of debtor balances

• Inter government adjustments

• Allocations to districts

• Charging of mark up on debit balances

• Imposing penalty on NBP for late deposit of remittance

• Payment of commission to NBP

HOW WE PERFORM GOVT BANKING BUSINESS

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The banking business of the govt. is performed by the bank through its HOK, FILED OFFICES and NATIONAL BANK OF PAKISTAN as its agent.

As Accounts of the Government with the Bank are maintained by the Govt. Accounts unit we act as a general Clearing House for the adjustment of transactions between different Governments

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ACCOUNTS DEPARTMENT,BSCInter Govt Adjustments at Accounts HOK

NBP

SBP,BSC Branches

Provincial Balances to Prov. Govts.

THINSHEET

Entire Balances to Finance Deptt. SBP

Adjustment, Creation, Retirement-Final Balance of C-I by Finance SBP

Internal/External Stakeholders

Consolidation of Figures---Flow of Data

Types of Government payments Salaries of Government Departments Income Tax Refund SSC/DSC Prize Bond (P. Money/Encashment) Postmaster  Assignment Assignment Accounts (Military) Military AGPR-Sub Offices AGPR-Islamabad SEN.SECTT.TV National Assembly T.V NBP Assignment central/provincial Nat'l Savings Org. Central Misc. Military Pension

Major Heads

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Central-I Provincial-I

Central-II Provincial-II

Central-III Provincial-III

Central- VIII Provincial-IV

Central -XI

Central -XVII

Central -XVIII

Arrangements with govt Excess cash balances

Ways and means limit

Breach of limit

Next day finalization of balances

NBP as an agent

NBP is working as Agent of SBP NBP Branches has been divided in to A,B,C categories

with respect to distance ‘A’ categories branches Report through relevant

offices of BSC B & C categories Branches Report to Govt, Account

Division BSC HOK through NBP Head Office Govt, Account Division at HOK compiled the figures of

Receipt and Payment make reimbursement to NBP Commission is paid to NBP on yearly basis (1st April to

31st March) @ 0.12% i.e. 12 Rupees for every 10,000/ Rupees

No physical cash involved