Updated: Monday April 17, 2017/AlEthnien
Rajab 21, 1438/Somavara
Chaitra 27, 1939, at 05:28:25 AM
The Deposit Protection Corporation Act, 2016
ACT NO. XXXVII OF 2016
[13th August, 2016]
An Act to provide for the establishment of Deposit
Protection Corporation as a subsidiary of the State Bank of
WHEREAS it is expedient to provide for the
establishment, management and control of Deposit Protection Corporation as a
subsidiary of the State Bank of Pakistan, for protection of small depositors in
order to ensure financial stability of, and maintain public trust in, the
financial system and for matters connected therewith or ancillary thereto;
It is hereby enacted as follows:---
CHAPTER-I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act
may be called the Deposit Protection Corporation Act, 2016.
(2) It extends to the whole of
(3) It shall come into force at once.
2. Definitions. In this Act, unless there is
anything repugnant in the subject or context,---
(a) ”banking company” has the same meaning as
defined in section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962);
(b) ”Board” means the Board of directors of the
Corporation;
(c) ”Chairman” means the Chairman of the Board;
(d) ”Director” means a member of the Board;
(e) ”Corporation” means the Deposit Protection
Corporation established under sub-section (1) of section 3;
(f) ”failed institution” means such member
institution that has been notified by the State Bank under sub-section (1) of
section 21;
(g) ”Governor” means the Governor of the State
Bank and includes an Acting Governor;
(h) ”Managing Director” means the Managing
Director appointed under section 12;
(i) ”member institution” means a banking company
or a financial institution which is notified by the Corporation as a member
institution and which is required to pay premium to the Corporation under the
provisions of this Act;
(j) ”prescribed” means prescribed by rules or regulations
made under this Act;
(k) ”protected deposit” means the deposit
protected under section 7, subject to exceptions under section 8;
(l) ”regulations” means regulations made under
this Act;
(m) ”rules” means rules made under this Act;
(n) ”seal” means the common seal of the
Corporation; and
(o) ”State Bank” means the State Bank of Pakistan
established under the State Bank of Pakistan Act, 1956 (XXXIII of 1956).
CHAPTER -II
ESTABLISHMENT AND OPERATION OF THE CORPORATION
3. Establishment of the Corporation.—(1) On the
commencement of this Act, there shall be established a Corporation to be called
Deposit Protection Corporation.
(2) The Corporation shall be a body corporate having
perpetual succession and a seal and shall by the said name sue and be sued.
(3) The head office of the Corporation shall be
situated in
4. Corporation to be a subsidiary of the State
Bank. The Corporation shall be a subsidiary of the State Bank.
5. Objective of the Corporation.—(1) The objective of
the Corporation is to compensate the depositors for losses incurred by them to
the extent of protected deposits in the event of failure of a member
institution as notified by the State Bank under sub-section (1) of section 21.
(2) All banks scheduled under sub-section (2) of
section 37 of the State Bank of Pakistan Act, 1956 (XXXIII of 1956), unless
exempted or excluded by the Board, shall compulsorily be member institutions of
the Corporation and liable to pay the prescribed premium.
6. Business and functions of the Corporation. The
Corporation, under the overall supervision and control of the Board, may
transact and carry on all or any of the following functions, namely:---
(a) collect premiums and contributions from
member institutions and others;
(b) acquire, hold, manage and invest resources of
the Corporation;
(c) receive grants and borrow moneys;
(d) assess and verify claims of the depositors made
against the failed institution;
(e) make or cause to be made payments to the
depositors to the extent of protected deposits;
(f) recover payments made on account of protected
deposits from the assets of failed institutions;
(g) incur any expenses concerning its functions;
(h) enter into any contracts or other
arrangements or any financial or other transactions;
(i) issue guarantees and indemnities;
(j) purchase, hold, manage, lease, encumber,
transfer and dispose of any property and assets;
(k) hire, employ or retain any person as an
employee, agent or consultant on full time, temporary or on deputation basis
and make necessary regulations for the terms and conditions of their service;
(l) create awareness among general public and
depositors about the deposit protection scheme as contained in this Act; and
(m) carry on any business, discharge any
functions and exercise powers as are necessary for, incidental to, or in
connection with, affairs of the Corporation or any other act or deed deemed by
the Board to be in the interest of the Corporation or for the advancement of
the purposes of this Act.
7. Protected deposits.—(1) The Corporation shall
guarantee full payment of funds held in depositor’s accounts with a member
institution, regardless of the number and size of the deposits, up to an amount
prescribed by the Corporation from time to time.
(2) The above amount shall be inclusive of any
interest accrued or return due as at the date of the notification of the State
Bank under sub-section (1) of section 21.
(3) Shariah compliant mechanism of deposit
protection in respect of Islamic banking institutions shall be provided in the
prescribed manner which shall be approved by the State Bank’s Shariah Board.
(4) Within ninety days of its commencement of business,
the Corporation shall publish, in at least two daily newspapers having wide
circulation, the guarantee amount as provided under sub-section (1). Any
subsequent change in the guarantee amount shall be in same way published in two
daily newspapers having wide circulation.
8. Exceptions. —(1) Protected deposits shall not
cover the deposits of,---
(a) persons who have been granted preferential
interest or return in deviation from the terms and conditions announced by a
member institution which the member institution is obliged to apply to all its
depositors of similar category;
(b) members of the Board of Directors and senior
management of a member institution including chief executive officer and key
executives;
(c) partners of auditing firms responsible to
certify the member institutions’ financial statements;
(d) persons having acquired rights to a deposit
after the issuance of the State Bank’s notification under sub-section (1) of
section 21;
(e) spouse, dependent lineal ascendants and
descendants and dependent brothers and sisters of the persons specified in
clauses (b), (c) and (d);
(f) any member institution whose deposits are in
its name and on its account;
(g) government or government institutions;
(h) any company as defined under the Companies
Ordinance, 1984 (XLVII of 1984); or
(i) any other class of persons or institutions as
specified by the Board from time to time:---
Provided that where the Board specifically excludes
any class of persons or institutions, such decision shall be published by the
Corporation in two daily newspapers having wide circulation.
(2) Protected deposits shall not cover deposits
arising out of or related to transactions or actions constituting ‘money
laundering’ within the meaning of the Anti-Money Laundering Act, 2010 (VII of
2010), if the offender has been convicted of such offence.
9. Share capital and limited liability. —(1)
The authorized share capital of the Corporation shall be one billion rupees or
such other amount as the State Bank may, from time to time, determine by order
in writing and shall be divided into shares of one million rupees each.
(2) The paid-up capital of the Corporation shall be
such amount as may, from time to time, by order in writing be determined by the
State Bank and contributed by the shareholders.
(3) The share capital may be divided into different
kinds and classes as may be prescribed.
(4) The liability of shareholders of the Corporation
shall be limited to the amount, if any, not fully paid-up on the shares held by
them in the capital of the Corporation.
(5) No dividend shall be payable to the shareholders
of the Corporation.
10. Board of directors. —(1) The general
superintendence, direction and management of affairs and business of the
Corporation and overall policy making in respect of its operations shall vest
in the Board which may exercise all such powers and do all such acts, deeds and
things that may be exercised or done by the Corporation.
(2) The Board shall consist of the following seven
directors, namely:---
(a) a Deputy Governor of the State Bank as
nominated by the State Bank;
(b) four directors to be appointed on nomination
by the Federal Government in consultation with the State Bank, from among the
persons who, from among the persons who have knowledge of banking, commerce,
industry, economics, finance or law and neither of these directors shall be an
officer of the Federal or a Provincial Government or of the State Bank or an
employee or director or shareholder of the member institution;
(c) one director, an official of the Ministry of
Finance, to be appointed on the recommendation of the Federal Government; and
(d) the Managing Director.
(3) The directors appointed under clause (b) of
sub-section (2) shall hold office for a term of three years and shall be
eligible for re-appointment for an additional term of three years on the basis
of their performance in the first term.
(4) The meetings of the Board shall be held at such
times and places as may be prescribed or, until so prescribed, as and when
convened by the Chairman.
(5) The directors shall be paid by the Corporation
such fees and allowances for attending meetings of the Board or of any of its
committees and for attending any other work of the Corporation as may be
prescribed.
(6) No act or proceedings of the Board shall be
invalid merely on the ground of existence of any vacancy in, or defect in the
constitution of, the Board.
(7) The quorum of meetings of the Board shall be as
may be prescribed or, until so prescribed, shall be three directors.
(8) All decisions of the Board shall be taken by
majority of the directors present and voting at a meeting duly convened and
held and in the event of an equality of votes the Chairman may exercise a
casting vote.
(9) A resolution in writing signed by all directors
shall be as effective as if such resolution had been passed at a meeting of the
Board.
(10) Till such time the Board is constituted or three
months of the commencement of this Act, whichever is earlier, all powers of the
Board shall vest in the State Bank.
11. Chairman.—(1) The Deputy Governor of the State
Bank shall be the Chairman of the Board.
(2) The Chairman shall, whenever present, preside over
meetings of the Board. In absence of the Chairman, the directors present shall
choose one of them to be the Chairman for such meeting.
12. Managing Director. —(1) The State Bank shall
appoint a professional person, who has significant experience in banking, finance,
accountancy, business administration or public administration, as Managing
Director of the Corporation for a term of five years and he shall be eligible
for re-appointment for another term of five years on the basis of his
performance in the first term:---
Provided that the Managing Director may delegate his
powers, by general or special order in writing, to senior executive of the
Corporation for managing day- to- day affairs during his leave period or
absence from Pakistan:---
Provided further that if the office of Managing
Director is vacant, the State Bank may appoint any of its senior executives as
acting Managing Director for a period not exceeding three months.
(2) The Managing Director shall be the chief executive
officer of the Corporation and shall, subject to the control and direction of
the Board, administer affairs of the Corporation and shall have such powers for
this purpose as are from time to time delegated to him by the Board.
(3) The salary and other terms and conditions of
service of the Managing Director shall be such as the Board may determine
except that neither the salary of the Managing Director nor his other terms and
conditions of service shall be varied to his disadvantage after his
appointment.
(4) The Managing Director shall devote his full time
and attention to affairs of the Corporation, provided that the Managing
Director may, in addition to his duties as the Managing Director, be entrusted
with such other duties for such period as the Board may, by order in writing,
determine.
13. Disqualifications of the directors. No person
shall be appointed or hold office as director who,---
(a) is a member of the Senate, National Assembly,
any Provincial Assembly or an elected member of a local council or local body
constituted under any law relating to local councils or local bodies;
(b) is a director, officer or employee of any
banking company or financial institution or has an interest as a shareholder in
a banking company or financial institution:---
Provided that nothing in this clause shall apply where
the director is in the employment of the, State Bank or its subsidiaries or
where the director is, in addition to holding the office of director, entrusted
with additional duties by the Board or State Bank;
(c) has been convicted of tax evasion under any
law or has been convicted or proceedings are pending against him under section
412 of the Companies Ordinance, 1984 (XLVII of 1984) or section 83 of the
Banking Companies Ordinance, 1962 (LVII of 1962) or has been convicted by a
court of law for an offence involving moral turpitude;
(d) has been deprived of the right to hold a
position of financial responsibility;
(e) is in default of payments due from him to any
banking company, financial institution, cooperative society, Government
department, Government controlled or managed company or corporation and for the
purpose of this clause, default in payment by the spouse, dependent children
and companies, firms and other business concerns under the control or
management of a person shall be considered as the default of such person; or
holds an (f) office in a political party.
14. Removal of a director. A director or the
Managing Director may be removed by the State Bank by an order in writing where
it is established that,---
(a) any of the circumstances referred to in
section 13 is applicable;
(b) he has become physically or mentally
incapable of carrying out his responsibilities for a continuous period of six
months or more;
(c) he has been engaged in a serious misconduct;
(d) his activities impair the Corporation’s
interests;
(e) he has been absent from three or more
successive meetings of the Board without reasonable ground; or
(f) otherwise the State Bank considers him to be
unfit to be a director or, as the case may be, Managing Director.
15. Disclosure of interest.—(1) Every director
and employee of the Corporation shall disclose in writing to the Board any
commercial, financial or other business interest which he or his family members
may have, whether directly or indirectly, and which may have adverse
implications for the Corporation’s interest.
(2) In performing their obligations, the persons under
sub-section (1) shall be bound to place the Corporation’s interests before
their own interests.
(3) Directors shall not participate in any discussion
and shall restrain from voting on the issues in which their commercial,
financial or other business interest, or those of their families, is involved.
16. Committees of directors. —(1) The Board
may constitute one or more committees consisting of such number of directors as
it may determine.
(2) The powers, functions, duties and other terms of
appointment of a committee of directors shall be such as the Board may
determine.
(3) The members of a committee of directors shall hold
office for such period as the Board may determine.
(4) The minutes of every meeting of a committee of
directors shall be presented before the Board at its next meeting following the
meeting of the committee.
(5) Subject to general and any special directions of
the Board, a committee of directors shall deal with any matter entrusted to it
by the Board.
17. Corporation’s resources. —(1) The
sources of the Corporation’s resources shall, among others, consist of the
following, namely:---
(a) the paid-up share capital;
(b) initial premiums from member institutions;
(c) periodic premiums from member institutions;
(d) return on the investments;
(e) proceeds received from a member institution’s
property in case of sale or liquidation; or
(f) other sources including loans, donations,
grants and foreign assistance etc.
18. Financing the Corporation in shortfall of
resources. — (1) If at any time, resources of the Corporation fall short
of its liabilities under this Act, such shortfall may be covered in one of the
following ways, namely:—
(a) requiring member institutions to pay advance
premium;
(b) increasing the premium;
(c) drawing loans in accordance with the terms
and conditions prescribed by the Board; and
(d) allocations from the Federal Government.
(2) The amount paid in advance under clause (a) of
sub-section (1) shall be adjusted against future premiums.
(3) The maximum amount of the increased premium
contribution under clause (b) of sub-section (1) may not exceed such percentage
of the deposit base as prescribed by the Board.
(4) Loans drawn by the Corporation may be secured by a
guarantee issued by the Federal Government, State Bank or by Corporation’s
assets, including Corporation’s future claims on member institutions for
premium contributions.
19. Investments made and accounts maintained by
the Corporation. — (1) The Corporation may invest in,---
(a) Government securities issued or securities
guaranteed by the Government; or
(b) any other investment avenue as approved by
the Board:---
Provided that the Corporation shall formulate an
investment policy within ninety days of its commencement of business. The
investment policy shall be designed keeping in view objectives of the
Corporation and in line with underlying factors like risks and liquidity.
(2) The Corporation shall open and maintain account
with SBP Banking Services Corporation or with any other financial institution
with prior approval of the Board.
20. Determining size of deposits.(1)The
total amount of a member institution’s liability to a depositor shall be
determined by adding up all the depositor’s deposits, including interest
accrued or return due as at the date of notification under sub-section (1) of
section 21. In establishing the member institution’s total liability to a
depositor, foreign currency deposits shall be taken at equivalent amount at the
exchange rate declared by the State Bank at the date of the State Bank’s
notification under sub-section (1) of section 21.
(2) In the event of a joint deposit, each person’s
portion shall be taken into account in establishing the total amount of that
person’s deposits held by a member institution. If it is not otherwise provided
for in the deposit contract, it shall be assumed that the depositors’ portions
are equal.
(3) In the event of a deposit contract in favour of a
third party, the person in whose favour the deposit has been opened (the
beneficiary) shall be entitled to receive a payment from the Corporation unless
it is otherwise provided for in the contract. If there is more than one
beneficiary, the joint depositor rule as provided in sub-section (2) shall
apply.
(4) A deposit which is encumbered or serves as
collateral shall be included in the adding up under sub-section (1) and the
amount due on the deposit shall not be paid to the titleholder of the deposit
until the said encumbrance or security has been lifted. Where an order issued
by a court in respect of such deposit is effective, the Corporation shall pay the
amount due on the deposit to the person who is designated in the order as the
person authorized to receive the deposit amount.
21. Terms and procedures for reimbursement of
protected deposits.—(1) The State Bank shall, by a notification, declare a
member institution as a failed institution on the occurrence of any of the
following events, namely:---
(a) if it has been prohibited from receiving
fresh deposits; or
(b) if it has been informed by notice in writing
by the State Bank that its licence has been cancelled under section 27(4) of
the Banking Companies Ordinance, 1962 (LVII of 1962) or that a licence under
that section cannot be granted to it; or
(c) if it has been ordered to be wound up; or
(d) if it has transferred all its deposit
liabilities in
(e) if it has ceased to be a member institution
due to any significant judicial and regulatory actions that cancels the licence
of the financial institution; or
(f) if in respect of it any scheme of compromise
or arrangement or of reconstruction has been sanctioned by any competent
authority and the said scheme does not permit the acceptance of fresh deposits;
or
(g) if it has been amalgamated with any other
banking institution.
(2) The Corporation shall pay liabilities of the
failed institution to its depositors up to the amount protected, in the
cases the State Bank has issued a notification under sub-section (1).
(3) The Corporation shall owe no interest on protected
amounts.
(4) The Corporation shall pay the protected amount of
deposits in cash or through transfer of deposit to any banking company or in
any other way as determined by its Board.
(5) As soon as possible, after the issuance of
notification under sub-section (1), the Corporation shall collect necessary
information and cause the same to be published in at least two daily newspapers
having wide circulation including information about the date after which
depositors shall be paid from the Corporation and the procedure for
payments.
(6) Payments from the Corporation to the protected
depositors shall begin as early as possible from the date of the
notification under sub-section (1). The Corporation shall ensure that payments
to most of the protected depositors are made or tendered within seven working
days and that all payments are made or tendered within thirty days at the
latest, if there is no dispute as to the entitlement to, or ownership of, the
deposit.
(7) For foreign currency denominated deposits, the
depositor shall be paid the Rupee equivalent of the protected amount at the
exchange rate declared by the State Bank on the day of the notification under
sub-section (1).
(8) A member institution’s liability to its depositors
shall be reduced proportionally by the amounts paid by the Corporation to
depositors and shall be replaced by an equivalent liability to the Corporation.
(9) The Corporation shall regularly notify the
liquidator or the assignee in bankruptcy of the failed institution about the
amount paid by the Corporation to any depositor.
22. Priority of payment.—(1) Notwithstanding
anything contained in the Companies Ordinance, 1984 (XLVII of 1984), the
Banking Companies Ordinance 1962 (LVII of 1962) and any other law in respect of
insolvency or liquidation or tax, the claim of the Corporation against the
failed institution to the extent of protected deposit paid or to be paid and
any arrears of outstanding premium shall have priority to all other claims.
(2) For the avoidance of doubt, it is clarified that
payment to the depositors, to the extent of protected amount, of a failed
institution against whom winding up order is passed shall be made only through
the Corporation, and the Corporation shall also have priority rights of the
protected depositors as provided under section 58 of the Banking Companies Ordinance,
1962 (LVII of 1962).
23. Delegation of powers and appointment of
attorneys.—(1) The Board may, for the purpose of ensuring smooth and efficient
functioning of the Corporation and facilitating transactions of its daily
business, by resolution, delegate to the Managing Director or any other
executive of the Corporation, subject to such conditions and limitations, if
any, as may be specified therein, such of its powers and duties under this Act
as it may deem necessary.
(2) The Board may, from time to time, by resolution
appoint any company, firm or person to be the attorney of the Corporation for
such purposes and with such powers, authorities and discretions, not exceeding
those vested in or exercisable by the Board under this Act and for such period
and subject to such conditions as the Board may think fit, and any such
resolution may contain such provisions for the protection and convenience of
persons dealing with any such attorney as the Board may think fit.
24. Accounts and audit.—(1) The accounting year of the
Corporation shall commence on the first day of July and end on the thirtieth
day of June.
(2) The Corporation shall maintain proper accounts and
other records to reflect true and fair view of its state of affairs and prepare
annual statement of accounts, including the profit and loss accounts and
statement of financial position.
(3) The accounts of the Corporation shall be audited
by one or more auditors who shall be chartered accountants within the meaning
of the Chartered Accountants Ordinance, 1961 (X of 1961), to be appointed by
the Board.
(4) Every auditor shall be supplied with a copy of the
annual statement of accounts and it shall be the duty of the auditor to examine
the same together with the accounts and vouchers relating thereto and every
auditor shall have a list delivered to him of all books kept by the Corporation
and shall, at all reasonable times, have access to books, accounts and other
documents of the Corporation and may employ accountants or other persons to
assist him in auditing such accounts and may, in relation to such
accounts, examine the Managing Director, directors and executives of the
Corporation.
(5) The auditors shall submit a report to the Board
regarding the annual statement of accounts and in any such report they shall
state whether in their opinion the statement of accounts is a full and fair
statement of accounts containing all necessary particulars and is properly
drawn up so as to exhibit a true and correct view of the state of affairs of
the Corporation and, in case they have called for anyexplanation or information
from the Managing Director or the Board, whether it has been given and whether
it is satisfactory.
(6) The Board may, in addition to the audit under
sub-sections (3) and (4), cause to be carried out internal audit of the
Corporation’s accounts and the internal auditors’ reports shall be submitted to
the Board.
25. Power of the State Bank to give directions.—(1) In
order to protect interest of small depositors or ensure financial stability, where
the State Bank is satisfied that,---
(a) in the public interest; or
(b) to prevent affairs of the Corporation being
conducted in a manner detrimental to the interests of its beneficiaries or in a
manner prejudicial to interests of the Corporation or of the State Bank; or
(c) to secure proper management of the
Corporation generally or to further the objectives of this Act,
it is necessary to issue directions to the
Corporation, the State Bank may, from time to time, issue such directions as it
may deem fit and the Corporation shall be bound to comply with such directions.
(2) If any provision of this Act is contravened or if
any default is made in complying with any requirement of this Act or of any
rule or regulation, direction made or condition imposed there under, the State
Bank may, on a complaint made in writing by the Corporation, or on its own
motion, impose on the member institution and any other person who is knowingly
a party to such contravention or default, a fine which may extend to two hundred
thousand Rupees, and where a contravention or default is a continuing one, a
further fine may be imposed which may extend to ten thousand Rupees for every
day during which such contravention or default continues.
(3) The State Bank may recover the amount of any
outstanding premium or fine from a member institution by debiting its account
maintained with the SBP Banking Services Corporation.
(4) Any member institution or other person aggrieved
by imposition of the fine under this section may, within twenty - one days from
the date on which such decision is communicated to it, apply for review to the
State Bank.
(5) Any dispute as to the amount of premium due from
any member institution shall be decided by the State Bank and the decision of
the State Bank shall be final.
MISCELLANEOUS
26. Duty of officers and servants to maintain
secrecy.(1)
Except in performance of his duties under this Act, every executive or other
employee of the Corporation shall preserve and aid in preserving secrecy with
regard to all matters relating to affairs of the Corporation and of the State
Bank coming to his knowledge and not published by the Corporation or by the
State Bank and with regard to all matters relating to financial or monetary
affairs of any institution, person, body of persons, any Government or
authority whether in Pakistan or outside Pakistan that may come to his
knowledge in performance of his duties.
(2) Every such executive or other employee who
communicates any such matter, except when required by law so to do, or in
discharge of his duties as such, shall be guilty of an offence punishable with
imprisonment of either description for a term which may extend to three years,
or with fine which may extend to one hundred thousand Rupees, or with both.
(3) No court shall take cognizance of any offence
punishable under this section except upon a complaint in writing by a person
authorized in this behalf by the Board.
27. Officers to be public officers. —(1) For
the purposes of Article 7 of the Oanun-e-Shahadat, 1984 (P.O. No. 10
of 1984), the provisions of Part IV of the Code of Civil Procedure, 1908 (Act V
of 1908), and the provisions of rule 27 of Order V, and rule 52 of Order XXI of
the said Code any person in service of the Corporation acting in his capacity
as such shall be deemed to be a public officer.
(2) The provisions of Article 6 of the Qanun-e-Shahadat, 1984
(P.O. No. 10 of 1984), shall apply to the unpublished records of the
Corporation and the Managing Director shall be deemed to be the officer or head
of the department concerned.
28. Persons in service of the Corporation to be
public servants. Every person in service of the Corporation shall be
deemed to be a public servant within the meaning of section 21 of the Pakistan
Penal Code (Act XLV of 1860).
29. Production of unpublished records of the
Corporation, etc.—(1) No court, tribunal or other authority shall be
entitled to compel the Corporation or any person in service of the Corporation
to produce or, as the case may be, give any evidence derived from, any
unpublished records of the Corporation.
(2) No court, tribunal or other authority shall permit
any one to produce or give evidence derived from, any unpublished records of
the Corporation, except with the prior permission in writing of the Managing
Director who may give or withhold such permission as he thinks fit.
(3) Notwithstanding anything contained in this Act or
any other law for the time being in force, a report prepared by the Corporation
on a member institution under any law for the time being in force shall be
deemed to be unpublished for the purposes of sub-sections (1) and (2) even if a
copy of such report has been supplied to the member institution to which the
report pertains, the State Bank or the Federal Government.
30. Pension, gratuity, provident fund and other
employment benefits of Corporation’s employees to be exempt from attachments,
etc. Notwithstanding anything contained in any law for the time being in
force, pensions, gratuity or provident fund and other employment benefits
granted by the Corporation to its executives and other employees shall not be
liable to seizure, attachment or sequestration by process of any court at the
instance of a creditor, for any demand against the pensioner or in satisfaction
of a decree or order of any such court.
31. Exemption from taxes. Notwithstanding
anything contained in the Wealth Tax Act, 1963 (XV of 1963), the Income Tax
Ordinance, 2001 (XLIX of 2001), the Stamp Act, 1899 (II of 1899) or any other
law for the time being in force relating to wealth tax, income tax,,super tax
or any other tax, the Corporation shall not be liable to pay any wealth tax,
income tax or super tax.
32. Power to make rules. The State Bank may,
with approval of the Federal Government and by notification in the official
Gazette, make rules, consistent with the provisions of this Act, for carrying
out the purposes of this Act.
33. Power to make regulations.—(1)The Board may
make regulations, not inconsistent with the provisions of this Act and the
rules made thereunder, to provide for all matters for which provision is
necessary or convenient for the purpose of giving effect to the provisions of
this Act.
(2) Where any provision of the regulations is
inconsistent with any provision of the rules, the provision of the rules shall
prevail.
(3) Where the State Bank considers it expedient so to
do, it may by order in writing, direct the Board to make any regulations or to
amend or rescind any regulations already made, within such period as it may
specify in this behalf.
(4) If the Board fails to comply with any direction of
the State Bank under sub-section (3) within the specified period, the State Bank
may make, amend or rescind any regulation directed by the State Bank to be
made, amended or rescinded, and a regulation so made, amended or rescinded by
the State Bank shall be deemed to have been made, amended or rescinded by the
Board in accordance with the provisions of this section and shall have effect
accordingly.
34. Power to call information.—(1) The Corporation may
call for any record or information from any member institution as it may deem
necessary for discharging its functions under this Act.
(2) The Corporation shall report to the State Bank in
case any member institution fails to provide information or record required
under sub-section (1) or comply with any provisions of this Act or any rules or
regulations made under this Act and the State Bank may take any action
corrective, penal or remedial against such member institution as it may deem
appropriate keeping in view the nature and extent of failure.
35. Protection of action taken in good faith. No
suit or other legal proceedings shall lie against the Corporation or the State
Bank or any director or officer of the Corporation or the State Bank for
anything done or intended to be done in pursuance of this Act or of any rules,
regulations or orders made there under unless done in bad faith.
36. Liquidation of the Corporation.(1) The
Corporation shall not be placed in liquidation save by order of the State Bank
and in such manner as the State Bank may direct.
(2) On the liquidation of the Corporation,---
(a) the outstanding assets of the Corporation
shall be distributed among the member institutions in such manner and in such
proportion as may be determined by the State Bank having regard to the amounts
of premium paid by them during any prescribed period or the deposits
of the said banks as on the date of liquidation of the Corporation or
other relevant circumstances; and
(b) the remaining outstanding assets of the
Corporation shall be transferred to the State Bank.
37. Act to override. Except the application
of any provision of the Act to the Corporation as a subsidiary of the State
Bank, this Act shall have effect notwithstanding anything contained in any law
for the time being in force or in any agreement, contract, or other applicable
documents or instrument.
38. Removal of difficulties. If any difficulty
arises in giving effect to any of the provisions of this Act, the State Bank
may make such order not inconsistent with the provisions of this Act, as may
appear to it to be necessary for the purposes of removing the difficulty:---
Provided that aforesaid power shall cease to exist on
expiry of two years, from the commencement of this Act.
39. Removal of deposit protection under the Banks
(Nationalization) Act, 1974 (XIX of 1974). Sub-section (4) of section
5 of the Banks (Nationalization) Act, 1974 (XIX of 1974) shall not be
applicable to any member institution.
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