FEW GLIMPSES OF COMMERCIAL BANKING SINCE 1965---PART--25 A SHORT PERIOD BEFORE 25TH MARCH 1971 THE UNQUESTIONABLE LEADER of the country laid out plan in his historic 7 March speech for the onslaught upon the nation soon to come. All banks having Head offices at Karachi experienced something so new and dramatic. Bank remained open only for 2 hours for transaction. All remittance to west Pakistan immediately stopped. The branches fell into a kind of problem faced never before. It is about their operation of Head Office account. All branches used to maintain Head Office account through which inter branch transactions were made. Branches who have deposits in access of their advances were shown as lent to Head Office upon which they used to earn a rate of interest. It was their income. It means surplus fund automatically got transferred to Head Office account. If branches own local advance increased, their balance with head office would have been affected. The opposite would have occurred when branches used to advance more their deposit. Some branches used to buy and sell NIT (national Investment Unit) to the debit or credit of head Office account. Operation of the account came to a halt. I bought NIT valuing Rs1500/ from Laldighi branch which immediately became frozen as I could no more en cash it. All remittance with west Pakistani branches by way of demand draft, mail transfer, telegraphic transfer came to an abrupt halt. This created a new problem for Head Office account reconciliation. As a temporary measure we had to open a new Head office account with Dhaka main office to route all transaction within the territory of east Pakistan through this account. It was like a banking earth quake happened overnight requiring lot of control reconstruction. Branches who were debtor to Head Office had no much problem but who were creditor had no idea what to do as their surplus fund will not earn any interest but they will have to pay interest for the corresponding deposits. This problem was little temporary but very much disturbing and chaotic for each of the branches having head office in West Pakistan like ours. As the branches remained open for 2 hours only cash collection and supply also suffered a serious experience. Import and export to and from each wing of the country also suffered an unusual situation. Our branch was too small having little transaction with West Pakistan so our problem was relatively insignificant except our balance with head Office, Karachi. On 7 March after noon a huge procession in support of the new movement participated by thousands of people took place in Chattak. It was like never ending one chanting revolutionary slogans. To me it was inspiring yet dreadful for unknown fear. What is going to happen all pervading question everywhere. In an anxious situation like this with great uncertainty we were passing our time. My radio has become my inalienable part of life to get news broad cast from home and abroad.
Posted on: Sun, 01 Sep 2013 10:57:19 +0000
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