Banking

ECs of ‘B’ Category barred for booth at Airports

Karachi, February 28, 2019: Exchange Companies of ‘B’ Category will not be allowed to participate in CAA tender for award of new license of currency exchange booth at Airports, the State Bank of Pakistan (SBP) said on Thursday.

In order to facilitate the Exchange Companies and Exchange Companies of ‘B’ category in timely opening of their outlets (Currency Exchange Booths / Branches) at Pakistani airports under Pakistan Civil Aviation Authority (CAA) license, the SBP has announced that following procedure will be applicable with immediate effect.

Exchange Companies A &B category desirous of participating in CAA tender(s) for award / renewal of license of currency exchange booth(s) / branch(es) at any Pakistani airport(s) shall obtain in-principle approval from SBP before participating in each CAA tender.

Application(s) complete in all respects by Exchange Companies for obtaining in principal approval to participate in CAA tender(s) must reach Exchange Policy Department at least 7 working days prior to the last date of application submission in CAA tender(s).

In principle approval for participation in CAA tender(s) shall be given by SBP to those Exchange Companies which have better compliance ratings, financial health and corporate governance.

Applications of Exchange Companies for in-principle approval for participation in CAA tenders for opening of currency exchange booth(s) / branch(es) at airports will be treated independent of their Annual Network Expansion Plan and may be submitted to the Director, Exchange Policy Department any time during the year as per CAA tender timelines.

Exchange Companies of ‘B’ Category are not allowed to participate in CAA tender(s) for award of new license of currency exchange booth(s) / branch(es) as at present they are not allowed expansion of their branch network.

Exchange Companies of ‘B’ category holding valid CAA license of currency exchange booth(s) / branch(es) shall apply for permission to participate in fresh tenders at airports/locations where they already operate after expiry of CAA license subject to compliance as applicable to Exchange Companies with requirement.

While submitting the application for participation in CAA tender, Exchange Companies and Exchange Companies of ‘B’ category will deposit non-refundable fee of Rs. 50,000/- per outlet in RTGS Clearing account number 427516 of the State Bank and submit the payment receipt as evidence of having paid the applicable fee.

According to SBP, failure to comply with the above instructions shall attract regulatory action against the concerned Exchange Company / Exchange Company of ‘B’ Category under the relevant provisions of the Foreign Exchange Regulation Act, 1947.

 

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