Pakistan's central bank clarifies after half-printed Rs. 1,000 banknotes circulated
The State Bank of Pakistan (SBP) has issued a clarification after videos showing half-printed Rs. 1,000 notes went viral recently. In its statement, the central bank said that the risk of such errors persists due to the large-scale printing and production of currency notes. Pakistanis first became concerned after a video purportedly made by a bank staffer showing incomplete, half-printed banknotes surfaced. This prompted the SBP to announce an investigation on Tuesday.
Why does this story matter?
The viral videos caused panic among the masses that counterfeit bank notes were in circulation. In January, the SBP announced that it would begin the process of designing and issuing new banknotes for all existing denominations over growing concerns about the circulation of counterfeit currency. At the time, the central bank in Pakistan stated that the step was intended to prevent counterfeit currency and encourage economic documentation.
National Bank of Pakistan branch manager discovers misprinted notes
In the video, the staffer claiming to be the bank manager of National Bank of Pakistan (NBP) in Karachi displayed two fresh Rs. 1,000 banknotes with blank backsides. He said, "I have no idea how many bundles have been dispatched already. These were returned by a customer and that is how we got to know about it." The manager also showed another bundle containing misprinted notes, claiming that every package had at least two such half-printed notes.
Video showing half-printed banknote
SBP's response to misprinted banknotes
On Wednesday, the SBP stated that Pakistan Security Printing Corporation (PSPC) has a robust mechanism for segregating misprinted banknotes, but faults can still occur in mass production. The central bank revealed that only 10 misprinted currency notes were found among the cash bundles sent to the NBP branch. Those who received defective notes can exchange them at the central bank's 16 offices. The PSPC is responsible for printing security products like Pakistani banknotes and prize bonds for the federal government.
SBP official gives reasons behind misprinted notes
An SBP official said that the issued notes still retained their security features and would be checked by officials at public counters when people came to exchange the misprinted notes. He said that because the printing machine prints millions of notes in a single cycle, it is possible that some misprinted notes may be mistakenly circulated. This is despite the PSPC having a strong system in place to double-check the quality and reject misprinted notes.