Section 37: Scheduled banks

37. Scheduled banks.—(1) The Bank shall maintain at all its offices and branches an up‑to‑date list of banks declared by it to be scheduled banks under clause (a) of subsection (2). (2) The Bank shall, by notification, in the official Gazette― (a) declare any bank to be scheduled bank which is carrying on the business of banking in Pakistan and which― (i) is a banking company as defined in section 277F of the Companies Act, 1913, or a cooperative bank, or a corporation or a company incorporated by or established under any law in force in any place in or outside Pakistan ; (ii) has a paid‑up capital and reserves of an aggregate value of not less than five lakhs of rupees: Provided that in the case of a co‑operative bank, an exception may be made by the Bank ; (iii) satisfies the Bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors ; 1[(b) direct the descheduling of any scheduled bank which ceases to fulfil the requirements mentioned in clause (a) or goes into liquidation or otherwise wholly or partly ceases to carry on banking business: Provided that the Bank may, on application of the scheduled bank concerned and subject to such conditions, if any, as it may impose, defer the making of a direction under clause (b) for such period as the Bank considers reasonable to give the scheduled bank an opportunity of fulfilling the requirements mentioned in sub‑clauses (ii) and (iii) of clause (a) ; (c) alter the description in the list of scheduled banks whenever any scheduled bank changes its name. Explanation.—In subsection (2) the expression “value” means the real or exchangeable and not the nominal value of the capital and reserves and the valuation made by the Bank shall be final.

Effective date: 1956-04-18

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