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ORDINANCE XLVIII OF 2000 BANKING COMPANIES (AMENDMENT) ORDINANCE, 2000 ORDINANCE XLVIII OF 2000 An Ordinance further to amend the Banking Companies Ordinance, 1962 [Gazette of Pakistan, Extraordinary, Part 1 12th September, 2000] No.F.2(1)/2000=Pub., dated 12‑9‑2000.‑‑The following Ordinance made by the President is hereby published for general information:‑‑ 4. Substitution of section 13, Ordinance, LVII of 1962.‑‑In the said Ordinance, for section 13, the following shall be substituted, namely:‑= "13. Requirement as to minimum paid‑up capital and reserves ‑‑(1) Subject to subsection (2) no banking company shall‑‑‑ (a) commence business unless it has a minimum paid‑up capital as may be determined by the State Bank; or (b) carry on business unless the aggregate of its capital and unencumbered general reserves of such minimum value within such period as may be determined and notified by the State Bank from time to time for banking companies 'in general or for a banking company in particular. (2) No banking company incorporated outside Pakistan shall be deemed to have complied with the provisions of subsection (1) unless it deposits, and keeps deposits, with the State Bank an amount by transfer of funds from outside Pakistan or in the form of assets acquired out of remittable profits made by it from deposits in Pakistan which is not less than what is required to be maintained under subsection (1), in any one or more of the following forms, namely:‑‑ (i) interest‑free deposit in cash in Pakistan rupees; (ii) interest free deposit in a freely convertible approved foreign exchange within the meaning of the State Bank of Pakistan Act, 1956 (XXXIII of 1956), specified by the State Bank in respect of such banking company; and, (iii) deposit of unencumbered approved securities. (3) Without prejudice to the provisions of section 83, the State Bank may, by order in writing, require any banking company which has failed to comply with the provisions of clause (b) of subsection (1) within the period determined and notified under that clause to deposit with the State Bank such amount not exceeding the amount by which the aggregate value of the capital and unencumbered general reserves of such banking company falls short of the minimum amount of the aggregate of the capital and unencumbered general reserves required to be maintained by such banking company pursuant to clause (b) of subsection (1) on such terms and conditions as the Stare Bank may determine and every banking company which is so required shall be bound to comply with the order. (4) Any amount deposited and kept deposited with the State Bank under subsection (2) by any banking company incorporated outside Pakistan shall, in the event of the banking company ceasing for any reason to carry on banking business in Pakistan, be an asset of the banking company on which the claims of all the creditors of the banking company in Pakistan shall be the first charge. (5) If any dispute arises in computing the aggregate value of the capital and unencumbered general reserves of any banking company, a determination thereof by the State Bank shall be final. Explanation.‑‑For the purposes of this section, (a) the expression "value" means the real or exchangeable value or, if the real or exchangeable value exceeds the normal value, the. nominal value; and (b) the expression "capital and unencumbered general reserves" means paid‑up capital and such other items as may be notified in this regard by the State Bank from time to time.