The Banking Companies Ordinance, 1962
Federal Acts · Federal · 1962 · Ordinance No. LVII of 1962
Legal status
In force
Effective date
1962-06-07
Sections
159
THE BANKING COMPANIES ORDINANCE, 1962 1ORDINANCE No. LVII OF 1962 [7th June, 1962] An Ordinance to consolidate and amend the law relating to banking companies. WHEREAS it is expedient to consolidate and amend the law relating to banking companies; NOW, THEREFORE, in pursuance of the Proclamation of the seventh day of October, 1958, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance :�
- Schedule: The First Schedule [Omitted by the Federal Laws (Revisions and Declaration) Ordinance, 1981 (XXVII of 1981), s. 3 and Sch., II](repealed)
- Schedule: The Fourth Schedule [See sections 25(3), 83] (Table of penalty limits)
- Schedule: The Second Schedule [See section 34] (Form A -- Form of Balance-Sheet; Form B -- Form of Profit and Loss Account)
- Schedule: The Third Schedule [See section 63(2)] (List of Debtors)
I — PRELIMINARY
- Section 1: Short title, extent and commencement
- Section 2: Application of other laws not barred
- Section 3: Limited application of Ordinance to Coorperative Banks. [Omitted](repealed)
- Section 3A: Limited application of Ordianace to certain financial institutions
- Section 4: Power to suspend operation of Ordinance
- Section 5: Definitions
- Section 6: Ordinance to override memorandum, articles, etc
II — BUSINESS OF BANKING COMPANIES
- Section 7: Form of business in which banking companies may engage
- Section 8: Use of the word "Bank" or any of its derivatives
- Section 9: Prohibition of trading
- Section 10: Disposal of non-banking assets
- Section 11: Prohibition of employment of managing agents and restrictions on certain forms of employment
- Section 12: Restrictions on removal of records and documents
- Section 13: Requirement as to minimum paid-up capital and reserves
- Section 14: Regulation of paid-up capital, subscribed capital and authorized capital and voting rights of share-holders
- Section 15: Election of new directors
- Section 15A: Appointment of director by the State Bank
- Section 15B: [Omitted.](repealed)
- Section 15C: Fitness and propriety
- Section 16: Restriction on commission, brokerage, discount, etc. on sale of shares
- Section 17: Prohibition of charge on unpaid capital
- Section 18: Prohibition of floating charge on assets
- Section 19: Restrictions as to payment of dividend
- Section 20: Prohibition of common directors
- Section 21: Reserve Fund
- Section 22: Cash Reserve
- Section 23: Restriction on the nature of subsidiary companies
- Section 24: Restrictions on loans and advances
- Section 25: Power of State Bank to control advances by banking companies
- Section 25A: Power of the State Bank to collect and furnish credit information
- Section 25AA: [Omitted.](repealed)
- Section 25B: Recovery of certain dues of banking companies as arrears of land revenue
- Section 26: Power of State Bank to prohibit acceptance of deposits by banking companies incorporated outside Pakistan
- Section 26A: Deposits
- Section 27: Licensing of banking companies
- Section 27A: Prohibition of advertising for deposits and collection
- Section 27B: Disruptive union activities
- Section 28: Restrictions on opening of new, and transfer of existing places of business
- Section 29: Maintenance of liquid assets
- Section 30: Assets in Pakistan
- Section 31: Unclaimed deposits and articles of value
- Section 32: Half-yearly returns and power to call for other returns and information
- Section 33: Power to publish information
- Section 33A: Fidelity and secrecy
- Section 33B: Guidelines by the State Bank
- Section 34: Accounts and balance sheet
- Section 35: Audit
- Section 36: Submission of returns
- Section 37: Copies of Balance Sheets and Accounts to be sent to Registrar
- Section 38: Display of audited balance sheet by banking companies incorporated outside Pakistan
- Section 39: Accounting provisions of this Ordinance not retrospective
II-D — TRANSACTIONS OF BANKING BUSINESS ILLEGALLY BY COMPANIES, ETC.
- Section 43A: Power to call for certain information, etc
- Section 43AA: Special provisions
- Section 43B: Power to make declaration
- Section 43C: Consequences of a declaration under section 43B
- Section 43D: Deposit of cash and preservation of assets, etc.
- Section 43E: Statement of assets and liabilities to be submitted to State Bank
- Section 43F: Consequential provisions for winding up, etc.
IIA — Islamic Banking
- Section 39A: Scope and application
- Section 39B: Definitions
- Section 39C: Business
- Section 39D: Relationship between an Islamic banking institution or Islamic financial institution and its customers
- Section 39E: Shariah Governance
- Section 39F: Priority of payments to Islamic deposit account holders, investment account holders and other claimants
- Section 39G: Charity
- Section 39H: Separate Regulatory Instructions
- Section 39I: Conversion and Establishment of Islamic Banking Subsidiary
- Section 39J: Penalities
- Section 39K: Other provisions relating to Islamic banking
- Section 39L: Savings
IIB — Supervision
- Section 40: Inspection
- Section 40A: Responsibility of State Bank
- Section 41: Power of the State Bank to give directions
- Section 41A: Power of the State Bank to remove directors or other managerial persons from office
- Section 41B: Power of the State Bank to supersede Board of Directors of a banking company
- Section 41C: Limitations
- Section 41D: Prosecution of directors, chief executives or other officers
- Section 42: Intervention triggers and powers of the State Bank
IIC — Resolution of Banking Companies
- Section 42A: Resolution authority
- Section 42B: Resolution objectives
- Section 42C: Resolution planning
- Section 42D: Resolution triggers
- Section 42E: Resolution powers
- Section 42F: Order of meratorium
- Section 42G: Powers of State Bank to prepare scheme of reconstruction or amalgamation
- Section 42H: Bridge bank
- Section 42I: Temporary Public Funding for Resolution
- Section 43: Certain provisions of the Ordinance not to apply to certain banking companies.
III — SUSPENSION OF BUSINESS AND WINDING UP OF BANKING COMPANIES
- Section 44: High Court defined
- Section 45: Restriction on stay order
- Section 46: Restriction on compromise or arrangement between banking companies and creditors
- Section 47: [Omitted.](repealed)
- Section 48: Procedure for amalgamation of banking companies
- Section 49: Winding up by High Court
- Section 50: Court Liquidator
- Section 51: State Bank to be official liquidator
- Section 52: Application of Companies Act to liquidators
- Section 53: Stay of proceedings
- Section 54: Preliminary report by official liquidator
- Section 55: Notice to preferential claimants and secured and unsecured creditors
- Section 56: Power to dispense with meetings of creditors, etc.
- Section 57: Booked depositors' credits to be deemed proved
- Section 58: Priority payments to depositors
- Section 59: Restriction on voluntary winding up
IV — SPECIAL PROVISIONS FOR SPEEDY DISPOSAL OF WINDING UP PROCEEDINGS
- Section 60: Part IV to override other laws
- Section 61: Power of High Court to decide all claims in respect of banking companies
- Section 62: Transfer of pending proceedings
- Section 63: Settlement of list of debtors
- Section 64: Special provisions to make calls on contributories
- Section 65: Documents of banking company to be evidence
- Section 66: Public examination of directors and auditors
- Section 67: Special provisions for assessing damages against delinquent directors, etc.
- Section 68: Duty of directors and officers of banking company to assist in the realization of property
- Section 69: Special provisions for punishing offences in relation to banking companies being wound up
- Section 70: Public examination of directors and auditors etc., in respect of a banking company under scheme of arrangement
- Section 71: Special provisions for banking companies working under schemes of arrangement at the commencement of the Ordinance
- Section 72: Appeals
- Section 73: Special period of limitation
- Section 74: State Bank to tender advice in winding up proceedings
- Section 75: Power to inspect
- Section 76: Power to call for returns and information
- Section 77: District Magistrate to assist official liquidator in taking charge of property of banking company being wound up
- Section 78: Enforcement of orders and decisions of High Court
- Section 79: Power of High Court to make rules
- Section 80: References to directors, etc., shall be construed as including references to past directors, etc.
- Section 81: Part II not to apply to banking companies being wound up
- Section 82: Validation of certain proceedings
IV-A — BANKING MOHTASIB
- Section 82A: Appointment of Mohtasib
- Section 82B: Terms and conditions of the Banking Mohtasib
- Section 82C: Reference to Banking Mohtasib by Court
- Section 82D: Procedure for making complaints
- Section 82E: Recommendations for implementation
- Section 82F: Power to call for information
- Section 82G: Report of Banking Mohtasib
V — MISCELLANEOUS
- Section 83: Penalties
- Section 83A: Dishonest removal of pledged goods
- Section 84: Cognizance of offences, etc.
- Section 85: Application of fines
- Section 86: Special provisions for private banking companies
- Section 87: Restriction on acceptance of deposits withdrawable by cheques
- Section 88: Change of name by a banking company
- Section 89: Alteration of memorandum of a banking company
- Section 90: Certain claims for compensation barred
- Section 91: Application of certain provisions to banking company incorporated by special enactments of the Federal Legislature
- Section 91A: Application of other laws barred
- Section 91B: Removal of difficulties
- Section 92: Power of Federal Government to make rules
- Section 93: Power to exempt in certain cases
- Section 93A: Exemption of officers, etc. from liability
- Section 93B: Exemption from requirement of licence
- Section 93C: Exchange of information
- Section 93CA: Co-operation with other authorities
- Section 93D: Continuance of charge and priority
- Section 94: Protection of action taken in good faith and indemnity
- Section 95: Repeals. [Omitted](repealed)
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