ps rrlrnonucED rN THE NATToNAL AssEMBLyl

.A
BILL

futher to afi,end the SBP Banking Se.yices Coryoration Ordinahce, 2ool

WHEREAS it is expedient lurlher to amend the SBp Banking Services

Ordinance, 2001 (LXVIl of 2OO.l), for the purposes hereinaffer appearing;

It is hereby enacled as tollows:-

l. Short tifle and commoncemont_ (1) This Act may be called the
SBP Banking Services Corporation (Amendmenl)Act, 2017

(2) lt shall come into torce at once.

2.Amendment of section 5, Ordinance LXVII of 2OOt._ ln the SBp

Banking SeMces Corporation Ordinance, 2OOl (LXVll of 2001), hereinafter
refe,red
lo as lhe said Ordinance, in seclion 5,-

('l ) in suEsection (1),-

(a) in clause (d), the word ,,and, at the end shail be omitted:
(b) in clause (e), for the full stop at lhe end, a semicolon and word ,,:
and" shall be substituted and thereafter the following nBw chuse
shall be added, namely;-

"(0 to carry out its functions effedively, the Bank, if deemed

necessary, may establish one or more gubsidiaries for the purpose of
conducting ils business, with the prior approval of the Board and State
Bank."; and
(2) lor sub-section (2), the lollowing shall be substituted, namely:-

'(2) The State Bank shall not transfer or delegate any of the functions
specified in section 9A of the State Bank of Pakistan Act, 1956 (XXXltt ot
1956), including,-
(i) formulation and monitoring of monBtary and credit policies;
(iD regulation and supervision of the financial seqloq
(iiD foreign exchange regime and exchange rate poticy: and
(iv) payment arld settlemenl system.".
3. Amendment ot sectlqn g, Ordlnanco Uo/ of 200r.- In the said
Ordinance, in seclion 9, after sub.seclion (5), the tollowing new sub-section shall be
added. namely:-
 '(6) At any time when the office of the Managing Director is vacant, the
Govemor may appoirt any officer of the Stale Bank or from the Bank as
Acting Managing Direclor within a period of fifteen days trom the date of
vacancy:

Provided that the Managing Director shell be appointed under sub-

seclion (1) within a per od of three months of the occurrence of vacancy.".

4. Amendment of section 13, Ordinance LXVII of 2001.- lnthesaid

Ordinance, in section 13, in sub-section (3), for the words "State Bank", the word
"Board" shali be substitl.rted. r
5. Substitution ofsection 24, Ordinanc€ LXVII ot 200',,- ln the said

Ordinance, for seclion 24, th€ following shall be substituted, namely:-

"24. Pension, gratsily and provident fund of Bank employees to be

exempl from attachments, etc.- Notwithstanding anything contained in any
iaw for the time being in force, pensions: gratuity and provident fund of the
execulives and other employee or pensioners shall not be liable to seizuae,
attachment or sequest ation by process of any coud order at the instance of a
creditor, decree hold€r etc, for any demand against the executives,
employees or pension()r or in satisfaclion of a decree or order of any court.".

6. lnsertion of new section 24A, Otdiiance LXVII of2001.- lnthe

said Ordinance, after section 24, the following new section shall be inserted,
namelY:-
' "24A. Act or proceeding ol the 8oa.d not to be questioned.- No act or
proceeding of the Bcard or lhe Commillees of the Bo6rd shall be queslioned
on the ground merel\, ot lhe existence of any vacancy in or any defect in the
constitution of such B()ard or Committee thereof.".

7. Substitution olsection 28, Ordlnance LXVII of2001.- lnthesaid

Ordinance, for sector 28, the lollowing shall be substituted, namely:-
"28. Proteclion of action taken in good faith.- No suit or other legal
proceedings shall lie l1gainst the Slate Baok and the Bank or any director or
offrcer of the Slate Bank and the Bank for anylhing which is in good faith done
or rntended tobe doi-e in pursuance of lhis Ordinance or ofanyrules,
ieoUlations or orciers rr ade thereunder."

L
 STATEMEN T OF OBJECTS & REASONS

The purpose of amendments in the SBP Banking Services Corporation Ordinance 2001
(Ordinance) is to enable the SBP Banking Services Corporation (Bank) to optimjze its
operational efficiency thereby bringing it in conformity wilh lhe emerging operational
needs.

The amendments in the Ordinance are being proposed for the following reasons

'1. A new sub-section has been introduced in section 9, in line with gcod governance
for the appointment of an Acting Managing Director within a period of fifteen (15)
days, from the date of vacancy, provided that, the Managing Director shall be
appointed within a period of three (3) months from the date of the occurrence of
vacancy.

2. The power of the Board of Directors to appoint exteroal auditors has been
proposed in Iine with good governance.

3. An enabling clause on creation of subsidiaries by the Bank with the approval of

Board and State Bank under the Ordinance has been introduced for operational
efficiency.

4. Amendments have been proposed to exempt the gratuity and provident fund of
employees of the Bank from attachment as already provided for, in case of
pensioners to make the Ordinance consistent with lhe existing compensation
benefits.

5. ln order to provide adequate protection to the Bank and the officers of the Bank for
actions taken in good faith, amendments have been proposed ln section 28 of the
Ordinance.

6. A new section 24A has been proposed to legally protect the proceedings of the
Board and the committees of the Board from any questions arising merely on the
grounds of any vacancy or any defect in the constitution of the Board.

This Bill is designed to achieve the aforesaid purpose

Senator Mohammad lshaq Dar

Minister for Finance, Revenue, Economic
Affai.s, Statistics and Privalization