Section 28: Restrictions on opening of new, and transfer of existing places of business

28. Restrictions on opening of new, and transfer of existing, places of business.--(1) No banking company shall open a new place of business in any part of Pakistan or change, otherwise than within the same city, town or village the location of an existing place of business situated in any part of Pakistan and no banking company incorporated in Pakistan shall open a new place of business outside Pakistan or change, otherwise than within the same city, town or village in any country or area outside Pakistan, the location of an existing place of business situated in that country or area without first obtaining the prior permission in writing of the State Bank. (2) Nothing in this section shall apply to the opening for a period not exceeding one month of a temporary place of business within a city, town or village or the environs thereof within which the banking company already has a place of business, for the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any other like occasion: Provided intimation of such opening is given to the State Bank within one week of the date of opening. Explanation.--For the purpose of this section-- (a) "place of business" includes any sub-office, pay-office, sub-pay office and any place of business at which deposits are received, cheques cashed or moneys lent; (b) "new place of business" includes a place of business which is reopened after being temporarily closed. (3) The State Bank may, before giving the permission referred to in sub-section (1) of this section to any banking company, require to be satisfied by an inspection under section 40 or otherwise regarding such aspects of the company`s affairs as the State Bank may deem necessary.

Effective date: 1962-06-07

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