Section 30: Assets of the Issue Department

30. Assets of the Issue Department.—(1) The assets of the Issue Department shall not be less than the total of its liabilities and shall be maintained as follows :― 3[(a) of the total amount of the assets, assets of such value 4[Board may], specify shall be held in gold coins, gold bullion, silver bullion 1[special drawing rights held with the International Monetary Fund,] or approved foreign exchange; and] 5[(b) the reminder of the assets shall be held in (i) rupee coins; (ii) rupee securities of any maturity; (iii) such bills of exchange and promissory notes payable in Pakistan as are eligible for purchase by the Bank under 1[sub-clause] (a), (b) and (d) of 1[clause] (2) of section 17; (iv) promissory notes obtained by the Bank in respect of advances and loans made under 1[clause] (4) of section 17 against such securities as are mentioned in 1[sub-clauses] (a) and (b) of that 1[clause]; and (v) promissory notes obtained by the Bank in respect of advances and loans made under 1[clause] (6) of section 17:] Provided that the assets falling to the share of the Government of Pakistan under the provision of Pakistan (Monetary System and Reserve Bank) Order, 1947 which are held by the Reserve Bank of India pending their physical transfer to the Bank shall form a part of the assets. (2) For the purposes of this section, gold coin and gold bullion shall be valued at 2[the market value of the fine gold content thereof] silver bullion shall be valued at the market value of the fine silver content thereof, rupee coin shall be valued at its face value and rupee securities and securities specified in sub-section (4) shall be valued at the market rate for the time being obtaining. (3) Of the gold coin and gold or silver bullion held as assets not less than seventeen‑twentieth shall be held in the custody of the Bank including its branches, offices or agencies, and the gold or silver belonging to the Bank which is in any other bank or in any mint or treasury or in transit may be reckoned as part of the assets. 3[(4) For the purposes of this section, the approved foreign exchange which may be held as part of the assets shall be in any of the following forms, namely : (a) balances standing to the credit of the Bank with the principal currency authority of a country whose currency is an approved foreign exchange, or at any bank in such country; (b) bills of exchange bearing two or more good signatures, having a maturity not exceeding one hundred and eighty days and drawn on and payable at any place in a country whose currency is an approved foreign exchange ; and (c) securities of a Government with an unexpired currency of not more than five years and payable in a currency which is an approved foreign exchange.]

Effective date: 1956-04-18

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