1st law
Banking company ordinance 1962
 Law applied in Pakistan july 1984
 Total sections 95
 We were read only 14 sections that will be explain this law
1. Distintive features
(a) Section 8
 Bank
 Public limited
(b) Section 87
 Use of cheques for withdraw
 Deposite money/transfer
2. Banking business
a) Section 7
 The form of businesses of which company may engage.
b) Section 9
Not engage
3. Capital of bank
a) Section 13
 State bank of pakistan auithoring minimum paid up capital.
b) Section 14
 Ordinance lay down the conditions must saticfy before starting business.
4. Board of directors
a) Section 15, 15A, 15B, 15C
 Elections
 Tenure of office (that will be 6 years).
5. Reserve (backup)
a) Section 21
 State bank of Pakistan (SBP) , method of building reserve funds from gross
profit
b) Section 22
 Total demand
 Total liability
 Weekly report of reserve
6. Powers of state bank
a) Section 25
 Control advances
b) Section 25A
 Credit information
c) Section 25AA
 Report submit to federal govt.
 Fedral govt restructuring and rescheduling of loans
d) Incorporation (if SBP gave license)
e) Lisencing
 Must be authorized by state bank
f) Perform functions properly
 If a bank is not properly perform his functions then lisence will be cancelled
by state bank of Pakistan
g) Section 34
 Making balance sheet & income statement submitted to SBP on last work day
of year (31st december)
h) Section 38
 Balance sheet and income statement displayed in prominenet place of bank.
7. Unclaimed deposits and valuables
Section 31
 SBP possetion/take over all unclaimed deposits for 10 years or more
 Return to beneficiers
8. Secrecy (confidential/secret)
a) Section 33A
 Affairs of customers(bod,chairman,auditor) should be confidential
 Loans written of less & equal to 50,000.
9. Powers of SBP to take corrective measure against company
Section 41, 41A, 41B
 Corrective measures
 Powers include removel of CEO, directors, auditors and oppoint new nomies 9duration 3
years)
Section 41C
 Appeal for our self defence
10. Inspection by SBP
Section 40
 SBP inspection of banks(books, record/documents)
 Unable to provide
 Inspection of penalty
 Windup
11. Amalgamation and windup of banking company
a) Section 48






Procedure
Well design scheme
Draft
Election majority approved
Submit to SBP
Approvel from SBP
b) Section 59
 lisence or clearance certified from SBP to merge or windup a bank.
12. Muhtasab (justice)
Section 82
 Deal complains of customers, borrows
 Investigate
 Section 82D (not dealing employee complains).
13. Change of name of banking company
 SBP
14. Amendement of memorandum of accosiation
section 89
 SBP
2nd law
Bankers evidence act, 1891


Establish and build in 1891
7 sections
Banking court :



Punish the banks
Check records
When records will be opened then secerecy of bank customers eill be
effected
1. Section 2
Define 8 important terms of banking and finance




Copy
Bank
Banker book
Court
 Legal proceding/action
 Judge
 Trial
 Certified copies
2. Section 3
Every bank mention three(3) books
 Cash book
 Ledger
 Journal
3. Section 4
 Deals with mode of proof of entries and evidences
 A certified copy of bankers book in all legal proceding
 Only those accept by those
4. Section 5
Exempt (do not allow) for a banking officers from producing any banker book
5. Section 6
Authorities banking court to have inspection of banking book order of judge and
court
6. Section 6 (2)
 Such situation it not necessary that the banker be summoned
 Provide original book in 3 days
 In case of fraud misrepresentation, only in hose case bankimg officers are
allowed to present
7. Section 6 (3)
If you are not provide original book or record in 3 days then you have to pay
penalty/fine/punish.
8. Section 7
Deal with bearing cost.