Explain FIVE steps taken by Central Bank to control abuse of traveler’s cheque. – NABTEB QUESTION

(i) The Central Bank introduces staff penalty like withdrawer of licences issued to banks or individuals.

(ii) The Central Bank bans defaulting individuals or banks from further purchases of travelers cheques.

(iii) The Central Bank appoints agents to monitor the sale of travelers cheque.

(iv) The Central Bank prosecutes and sentences defaulters to prison for a prescribed number of years.

(v) The Central Bank introduces maximum Basic Travel Allowance (BTA).

(vi) The Central Bank publishes the names of defaulting individuals or banks in national papers regularly to serve as deterrent to others.

(vii) Customs checking posts are placed at our air and sea ports for currency trafficers.