SBP Allows Banks to Use Quarantined Cash Collected From Hospitals

The State Bank of Pakistan has asked all banks to use quarantined cash that has completed the 14 days quarantine period.

SBP, in a previous circular issued on March 23, had directed all banks to disinfect, seal and quarantine the cash collected from hospitals and clinics.

The banks maintaining the accounts of hospitals and clinics were also directed to make necessary arrangements whereby cash collected from hospitals and clinics should be disinfected, sealed and secured separately and be quarantined until further orders.

However, now the central bank has decided to allow the use of these quarantined notes, which have completed the two-week quarantine period. The banks were given credit for all such cash quarantined and kept on behalf of the SBP.

“Consequently, the credit given to banks on account of quarantined cash would be reversed on the fifteenth (15th) day from each reported date,” read the circular issued.

Similarly, the World Health Organization has also advised that the life of the virus on porous surfaces (such as paper banknotes) is lower, compared to other hard surfaces.

The central banks’ practices on the matter have been reviewed which indicates that quarantine of cash for 14 days was sufficient to disinfect the banknotes, which can then be put back into circulation.

However, SBP noted that the facility of same-day credit for quarantined cash introduced on March 23, 2020, will continue with contra debit on the 15th day, as mentioned above.