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040716

STATE BANK OF PAKISTAN - BANKING POLICY DEPARTMENT

BPD Circular No. 19of 2004
June 16, 2004 

The Chief Executives,
All Scheduled Banks
Dear Sirs / Madam,

BRANCH LICENSING POLICY

Please refer to BPD Circular No. 36 dated 3rd December 2002 and BPD Circular Letter No. 21 dated 27th June 2003 on the above subject.

2. In order to facilitate banks to ensure compliance of statutory/regulatory requirements regarding licences of branches it has been decided to issue a comprehensive circular containing all the instructions notified from time to time on the subject. A copy of the consolidated Branch Licencing Policy is hereby enclosed for information and strict compliance of the banks. BPD Circular No. 36 dated 3rd December 2002 and Circular letter No. 21 dated 27th June 2003 on the subject stands withdrawn w.e.f the date of issue of this Circular.

3. Please acknowledge receipt.

Encl: (As above)

Attachment

Yours faithfully,

Sd/-
(MUHAMMAD KAMRAN SHEHZAD)
Director

 

ANNEXURE-"A" APPLICATION FORM

THE BANKING COMPANIES ORDINANCE, 1962 (Form VII (See rule II)

(Section 28)

Form of application for permission to open a new place of business or change the location (otherwise than within the same city, town or village) of an existing place of business under Section 28 of the Ordinance.

Address:.........................................

Dated:

The Director,
Banking Policy Department,
State Bank of Pakistan,
Central Directorate,
Karachi.

Dear Sir,

We hereby apply for permission to open a new place of business/change the location of an existing place of business in terms of Section 28 of the Banking Companies Ordinance, 1962. We give below the necessary information for the purpose.

Yours faithfully,

Signature:.
1. Name of the banking company.
2. Place of location of the registered office of
the banking company and of its head
office
3. Whether the banking company is public
or private?
4. Date of incorporation.
5. Date of commencement of business
6. Previous applications.
(Give particulars of any application previously made
to the State Bank in this connection)
7. Management:
(a) Give names, business and addresses of
Directors.
(b) Give the name of the Officer-In-Charge of
he proposed office, his qualifications,
experience, age and remuneration and
also particulars about the local Advisory
Board (or local directors), if any.
8. Existing Offices:
(a) Give the number of offices in Pakistan.
In the case of offices making losses, also
give details as in Table 'A'.
(b) In the case of offices which have been
in existence for less than three years on
the date of application, also give details as
in Table "B".
9. Proposed Office:
(a) Give the location of the proposed office.
(b) Reasons for the proposed office.
State detailed reasons for the proposed
office and give statistical and other data,
as under, which may have been collected
for the proposed office:
(i) The population of the area of
operation of the proposed office.
(ii) The volume and value of agricultural,
mineral and industrial production
and imports and exports of the area
of operation of the proposed office as
under:-
PRODUCTION IMPORTS EXPORTS
COMMODITY VOLUME VALUE VOLUME VALUE VOLUM VALUE
E
1. 2. 3. 4. 5. 6. 7.
(iii) If there are any schemes for
agricultural, mineral or industrial
development give details of the same
and their probable effects on the
volume and value of the present
production, imports and exports.
(iv) If the existing banking facilities are
considered inadequate, give reasons.
(v) Prospects:
Give as under an estimate of the
minimum business, which the
banking company expects to attract
at the proposed office within 12
months.
1 .Deposits Amount in thousands of Rates proposed to be allowed
rupees on various types of deposits.
Minimum Maximum
2. Advances Amount in thousands of Rates proposed to be charged
rupees on various types of advances.
Minimum Maximum
10. Change of location of an existing office:
Give the exact location of the office, which
is proposed to be closed, and of the place
to which it is proposed to shift it, giving
particulars of the new location in item No.
9(b).
11. System of supervision and control over the
proposed Office:
Give a brief description of the system of
supervision and control which will be
exercised over the proposed office and the
authority of the officials at the proposed
office regarding advances (including bills
purchased and discounted).
12. Capital and Reserves:
Give details regarding the authorized,
subscribed and paid-up capital and
reserves of the banking company as on
the date of the application.
13. Expenditure:
State the amount already spent or
proposed to be spent on staff, premises,
furniture, stationery, advertising etc. in
connection with the proposed office. Also
state the minimum income which the
banking company expects to earn at the
proposed office in 12 months.
14. Forward an up-to-date copy of the
Memorandum and Articles of
Association and copies of balance sheets
together with profit and loss account
statements for the last five years (with
certified translations in English if not in
that language).
15. Other particulars:
Any additional facts which the banking
company may wish to adduce in support
N.B. of its application.

N.B.
1. The words 'office' and Offices" wherever they occur in this form include a place or
places of business at which deposits are received, cheques cashed or money lent.
2. No. 9(a) and (b) to be replied to if the application is for opening a new office. If an
application is for opening a place of business at Karachi, Lahore the details
asked for under item 9 (b) (I), (ii) and (iii) need not be supplied.
3. No. 10 to be replied to if the application is for changing the location of an existing
place of business.
4. If a banking company is unable or unwilling to supply full details in respect of
any of the items reasons for the omission may be given.
5. If an application has been submitted to the State Bank in past, information
under items 2,3,4,5,7,8,11,12&14 need not be supplied unless there is any
change since the last application.
6. The information asked for in items 7(b), 9, 10 & 13 is to be given separately for
each office where the application relates to the opening of or changing the
location of more than one office.

TABLE 'A*

(Attachment to Annexure-A)

Name of the Banking Company:__________

Number of existing offices making losses:_______________________
Name Description Date of Amount Deposits Advances
of i.e., whether Opening of loss Remarks
Place branch/booth, during
pay-office, the As on the date of
sub-office, etc. preceding the last balance sheet
year
1 2 3 4 5 6 7

TABLE 'B'

(Attachment to Annexure-A)

Particulars regarding offices which have been in existence for less than three years on date of application

As on the date of the last balance sheet

(Rounded off to the nearest thousand)
Name Description i.e. whether Date of Deposits
of branch, sub-office, Opening
Place payoffice,
sub-pay office, Current Savings Others Total
etc.
1 2 3 4 5 6 7
Advances Remarks
Secured Unsecured Doubtful or bad Total
8 9 10 11 12

SURVEY REPORT (Name of the Bank)

Category of Place Banked/Un-banked PART-I

1. Name of the Bank

2. Total number of branches /booths (Indicate separately)

3. Paid-up Capital

4. Adjusted Capital (as per last SBP Inspection Report)

5. Total Deposits

6. Capital Adequacy Ratios (Capital as % of deposits)

7. Weekly position of Liquidity Ratio and Credit Deposit Ratio during the preceding 12 months.

WEEK ENDED LIQUIDITY RATIO CREDIT DEPOSIT RATIO

PART-II

1. Name of the proposed branch/booth

2. Exact location of the proposed branch/booth (also mention any other name by which the place is popularly known, if any) with postal address.

3. Is suitable premises available?

If not what arrangements are proposed to be made. 4.

i) TehsiyTaluka H.Q

ii) Sub-Division H.Q. iii) District H.Q. iv) Divisional H.Q

5. Means of communication (specify the Railway line and Road, by which it is linked).

6. Does the place fall within the area of Municipal/Town Committee or Cantonment Board (Give name).

7. Whether Post Office/Telegraph office exists at the proposed Place, if not the name of the nearest Post Office and Telegraph Office with distance from the proposed branch./booth.

8. Names and location of nearest Bank branches/booths with approximate distance in meters/kilo meters from the proposed place.

NAME OF THE BRANCH/BOOTH DISTANCE

I. Applicant Bank's branch/booth

II. Other Bank's Branches/booths

i)

ii)

iii)

iv)

v)

vi)

9. If the place is covered by the Mobile Banking Unit of any bank, give particulars.

10. The population of the area of

(a) Operation of the proposed branch/booth

(b) Approximate population of the proposed place/actual population of the proposed place.

11. The volume and value of Agricultural/mineral and industrial production and imports and exports of the area of operation of the proposed branch are as under :-
COMMODITY PRODUCTION IMPORTS EXPORTS
Commodity Volume Value Volume Value Volume Value

12. If there are any schemes for Agricultural, Mineral or Industrial Development, give their details and probable effects on the volume and value of present production, imports and exports.

13. If the existing banking facilities are considered inadequate, give reasons.

14. A) Business Potentialities

i) Industrial area (brief description of factories/mills and/or special projects).

ii) Commercial area (No. of shops and/or other business activities including important items of exports and imports.

iii) Agricultural area (brief description of agricultural production).

B) Prospects: Year-wise estimate of business, which the proposed branch/booth expects to attract/undertake within 3 years of its operation.
1st Year 2nd Year 3rd Year

i) Amount of Deposits
ii) Amount of Advances
iii) Volume of inland remittance
iv) Volume of Foreign remittance
v) Volume of Bills business
vi) Volume of Imports
vii) Volume of Exports
viii) Future prospects of Development

C) Estimated period within which the proposed branch/booth is expected to become a profitable unit.15. Income (source-wise) which the branch/booth expects to earn within 3 years of its operation.
1st Year 2nd Year 3rd Year

Source

a) Interest/Return on Advances
b) Interest on/Return on funds placed with Head Office.
c) Commission etc.

Total:

16. Estimated recurring expenditure for the proposed branch/booth.

a) Interest/Return on various type of deposits.
b) Staff
c) Premises
d) Furniture & Fixture
e) Stationery
f) Advertisement
g) Other expenses.

Total:

17. Profit/loss anticipated.

Signature of the Survey Officer

1. Name:____________________

2. Designation:_______________

3. Date of survey:_____________

18. a) Certificate

Certified that the names of the proposed branch/booth is in accordance with the Census/Municipal/Town Committee and/or Revenue Records.

Signature of the Survey Officer

b) Certificate

Certified that the location of the proposed branch/booth shall in no way violate the Town Planning Regulations of the respective authorities.

Signature of the Survey Officerc) Certificate

FOR UNBANKED AREA BRANCHES/BOOTHS ONLY

Certified that no bank branch/booth is operating within the Revenue limits of the proposed place.

Signature of the Survey Officer

Signature of the Officer recommending Opening of the Branch.

1. Name:______________

2. Designation:_________

3. Date:_______________

ANNEXURE «B'

PARTICULARS OF TEMPORARY PLACE OF BUSINESS OPENED UNDER AUTHORITY OF PARA 8(b) OF THE BRANCH LICENSING POLICY

1. Exact location:

2. Occasion for which opened:

3. Period of operation:

i) Opened on:______________

ii) Closed on:______________

4. A copy of the request of the concerned authority on the basis of which the temporary place of business was opened is enclosed.

Encl: As above.

(Signature of an Officer not below the rank of Senior Vice President of the Head Office Or equivalent)

Dated:

ANNEXURE "C"

PARTICULARS OF THE BRANCH/BOOTH SHIFTED

1. Name of the Bank___________________

2. Name of the Branch/Booth shifted______

3. Licence No.___________________                    Dated_____

4 Premises from which shifted

5. Exact location of the premises to which shifted_

6. Distance between the old and new branch/booth premises

7. Date of shifting__________________________________

8. Reasons necessitating the shifting (in detail)_

9. Working results of the branch/booth at the old place, i.e. deposits advances and profit & loss accounts for the last three financial years

10. No of Accounts (category-wise) as at the end of last financial year and on the date of shifting.

11. Distance (in meters/kilo meters) of the old premises with nearest branches of other banks.
sr.no. Name of the bank Name of branch Distance

12. Distance (in meters/kilo meters) of the new premises from the nearest branches of other banks.
SR.No. Name of the bank Name of branch Distance

13. Certified that location of new premises does not violate the Town Planning Regulations of the concerned authority.

14. Certificate from the competent authorities that both the existing and proposed premises are: (a) within the same locality (in case of branches at banked places including big cities); (b) within the same territorial limits of the same village (in case of branches at un-banked places).

(Signature of Officer Incharge Branch with date)

(Counter Signature of an Officer not of the below the rank of Sr. Vice President of the Head Office or equivalent with date)ANNEXURE 'D'

PARTICULARS OF THE BRANCH/BOOTH CLOSED

1. Name of the Bank

2. Name of the Branch/Booth closed

3. Exact location of the Branch/Booth closed

4. Status (Banked/Un-banked)____________

5. Licence No. Dated

6. Date of Closure

7. Reasons necessitating closure (in detail)

8. Working results viz. Deposits, Advances Profit/Loss and Number of Accounts (Category-wise) as at end of the last financial year and on the date of closure_______________________________________________________

9. Name and distance of nearest branch of any bank from the closed branch.
Sr. No. Name of bank Name of branch Distance in meters

10 Certified that the closure of above branch/booth will not render the area as an unbanked under the branch licensing policy in force.

11. Licence No._______________Dated_____________________is sent herewith for cancellation.

Encl: (as above)

(Signature of an Officer not below the rank of Senior Vice President of the Head Office Or equivalent)

ANNEXURE 'E'

APPLICATION FOR SHIFTING OF BRANCH/BOOTH

1. Name of the Bank_________________________________________________________

2. Name of the Branch/Booth proposed to be shifted_______________________________

2. Exact location of the Branch/Booth at the existing place

3. Licence No.__________________Dated___________

4. Opening date of the Branch/Booth_________________

5. Where the Branch/Booth is proposed to be shifted_______________________

(Give exact address)

6. Whether the proposed premises is a built up one or is required to be constructed

7. Whether the plot/building is owned by the bank_________________________

8. Covered area of the existing and the proposes premises

(in case of inadequate space)

9.
For each of the last three years
I Total deposits of the branch/booth (year end)
ii Total advances of the branch/booth (year end)
iii Net profit/loss

10. Distance of the proposed premises from the existing premises_________________________

11. Name, location and distance of the nearest branches of other banks and the bank's own nearest branch from the existing premises
Name of the bank Name of branch with Distance in meters/K.M
location

12. Name, location and distance of nearest branches of other banks and the bank's own nearest branch from the proposed premises
Name of the bank Name of branch with Distance in meters/K.M
location

13. Reasons necessitating the shifting (in detail)_

14. Certificate to be enclosed from the competent authorities that both the premises are within the same locality (in case of branches at banked places including big cities); are within the same territorial limits of the same village (in case of branches at un-banked places).

15. Certified that location of the proposed branch/booth will not violate the Town Planning Regulations of the respective authority.

16. Certified that account holders will not be inconvenienced by the proposed shifting (In case of booth, such shifting will not attract public complaint)

Dated:__________

Name & Signature of Branch Manager

Proposed to be shifted (with official stamp)

Recommended.

Name & Signature of Zonal Head Dated:__________ (with official stamp)

ANNEXURE 'F'

SUGGESTED PROCESS FOR CASH/CHEQUE DEPOSIT IN ATMs

1. Customer inserts his card in the entrance door to enter in the ATM room.
2. Customer inserts his card in the ATM for the execution of the transaction.
3. Customer inputs his PIN code in the ATM.
4. Customer selects the deposit option in the ATM.
5. Customer selects his Account Number in which the deposit is to be made
6. Customer selects whether Cash or Cheque is to be deposited.
7. Customer selects the Currency of the deposit.
8. Customer inputs the amount to be deposited on the screen of ATM.
9. The ATM machine dispenses an envelope to be used to enclose cash.
10. Customer writes his Name, Account No. and Amount on the envelope.
11. Customer encloses the cash or cheque in the deposit envelope, seals it properly and puts his signature on the seal and envelope before inserting the envelope in the ATMs.
12. Customer inserts the envelope in the ATM.. A time & date of the deposit shall automatically be printed on the envelope.
13. Customer gets a receipt from the ATM, which states the date of transaction, amount deposited and the account number.
14. Two designated custodians access the ATM the next working day and retrieve the envelopes in dual custody.
15. The custodian counts the cash in dual custody (under a recorded camera) and log in details i.e. (date of retrieval of an envelope, account number and amount of cash in the ATM deposit register)
16. The cash amount is credited to the respective account. Amount of cheque is credited as per cheque clearing system.

Attachment to BPD Circular No.19 Dated; June 16. 2004

STATE BANK OF PAKISTAN BRANCH LICENING POLICY

The Branch Licencing Policy applicable with effect from 1st April 2001 to all scheduled banks including branches of foreign banks operating within the territory of Pakistan has been updated. The term bank wherever used hereunder shall mean and include banks incorporated in Pakistan as well as all branches of foreign banks operating in Pakistan under Section 27 of Banking Companies Ordinance, 1962.

2. Each bank shall submit to State Bank of Pakistan (SBP) for approval an Annual Branch Expansion Plan (ABEP) at least 30 days before the commencement of each calendar year (January-December) during which it plans to open branches. The plan would, interalia, indicate the number of the new branches proposed to be opened in urban and rural areas, location of each of the proposed branch and the area which it would serve, branches proposed to be closed (if any), the number of existing branches incurring losses consecutively for the last three years, arrangements for managerial and other staff members and information technology access and linkage for the proposed branches and arrangements for housing each of the proposed branch. State Bank will consider the Plan for new branches keeping in view the need of the system and grant approval in principle for number of new branch(es) that bank will be allowed to open during the given calendar year within 30 days from the date of receipt of ABEP complete in all respect. In case any ABEP of a bank is not approved the SBP will invariably intimate the same in writing to the bank within 30 days from the date of submission of duly completed ABEP to SBP. However, licence for individual branch opening shall be issued on receipt of formal application on prescribed format under the provisions of Section 28 of the Banking Companies Ordinance, 1962 (Annexure 'A'). The licence will be issued for opening of new place of business when evidence is provided that adequate security arrangements are in place at the proposed place of business and the Town Planning Regulations are not violated*. Request for a new branch in Azad Jammu and Kashmir (AJ&K) will have to be supported by the AJ&K Government. The approval in principle granted under a particular ABEP shall lapse in case bank fails to submit a formal

*Evidence regarding provision of adequate security arrangements and observance of town planning regulations will not be pre-condition for approval of ABEP and will only be required at the time of seeking formal licence from SBP.application for issuance of licence at least 30 days before the expiry of that particular year. Similarly licence issued under respective ABEP shall expire where a bank fails to open the branch before 31st December of that year. The licence may be revoked in case it subsequently transpires that the bank had made material mis-representation of facts or concealment of material information and the responsible officials) shall personally be liable for action under Section 83 of the Banking Companies Ordinance, 1962.

3. For the installation of Automated Teller Machines (ATMs), banks shall follow the instructions given below.

(a) The banks are free to install ATMs within branch premises (on-site) as well as at offsite places provided they inform State Bank of Pakistan in writing three days before that ATM becomes operational.

(b) Before extending the facility of cash & cheque deposits through ATMs to the customers, banks must develop and put in place a well defined procedure, including resolution of disputes in this regard and forward a copy of this to SBP for information.

(c) A suggested process for cash/cheque deposits in the ATMs and its ultimate credit to the customer's account is enclosed (Annexure-F). The banks may, however, add more steps/measures for cash/cheque deposits to further strengthen the process.

(d) Banks shall ensure proper security at off-site ATMs to avoid any incidents of snatching, robbery, dacoity etc.

(e) Every banking company shall, within seven days after the close of each reporting quarter, submit to Banking Policy Department of State Bank of Pakistan a quarterly statement regarding installation of Automated Teller Machines (ATMs), within and outside the premises for information and record.

4. CAMELS rating of 1,2 and 3 in the last On-Site Inspection of the bank or a satisfactory composite rating of the bank assigned under SBP's Institutional Risk Assessment Framework shall be the eligibility criteria for approval or otherwise of the ABEP. In addition, the eligibility of a bank to open a new place of business shall be considered by the State Bank keeping in view, among others, the financial strength of the bank as evident from its net worth (net equity free of actual and potential losses), adequacy of its capital structure, record of earning capabilities, future earning prospects of the bank, managerial capabilities, bank's liquidity position, track record of the bank's adherence to prudential regulations, credit disciplines, quality of customer's services, staff management relationship and the convenience and the needs of the population of the area to be served by the proposed branch. Moreover, the following considerations will also be taken in the grant of licence: -

i) The opening of branches in rural and under banked areas will be given preference.ii) Preference will also be given to those branches, which will be connected electronically, provide utility bill receipt services and expedite delivery of home remittances.

iii) In case of foreign banks, in addition to above, the performance of their existing branches, level of commitment to the local market, sound international reputation, provision of full range of banking services, new investment by their H.O. etc., will be guiding factors for issuing fresh licences.

5. Banks will be free to close any of their existing branches operating at banked places, without obtaining prior approval of State Bank of Pakistan. Banks will also be free to close any of their existing branches in un-banked area provided the area is not left without an alternate arrangement for provision of banking services to the local community. It is hereby clarified that while closing branches at unbanked places, Post Offices/UBL Post Office Counters or other similar counters operating within a radius of 5 K.M. may not be treated at par with the branches, as these are not a substitute for the branch. A place/area will deem to be un-banked place if no branch of any other bank is operating within radius of 5 K.M. The closure of the branch should be intimated to the State Bank of Pakistan on the prescribed Proforma (Annexure 'D') within twenty one (21) days of the closure of the branch, simultaneously surrendering the licence of the branch to the State Bank. Any branch closed down by the banks in violation of Branch Licencing Policy have to be reopened and confirmation in this regard be submitted to SBP.

6. Banks are free to shift or relocate their banked area branches within the same cities/towns/villages* and on countrywide basis without SBP's prior approval. However prior permission shall be required for shifting of branches from other places in the country to five metropolitan areas i.e. Karachi, Islamabad-Rawalpindi, Lahore, Peshawar and Faisalabad for which they will be required to submit their application on the prescribed proforma (Annexure-E). NBP will, however, be required to obtain prior clearance from Accounts Department, State Bank of Pakistan, before shifting of their branches conducting treasury work. Intimation of shifting of a branch will be sent by the bank concerned to the State Bank of Pakistan within 15 days from the date of its shifting on prescribed proforma (Annexure-C)

7. Request from National Bank of Pakistan for opening of a chest branch at a new place of business must be supported by a clearance from the Accounts Department of State Bank of Pakistan. All applications for opening/shifting of the chest branches will be considered duly supported by a clearance certificate from Accounts Department of State Bank of Pakistan.

^Certificate to be enclosed from the competent authority that both the existing and proposed premises are:

a. Within the same locality (in case of branches at banked places including big cities);

b. Within the same territorial limits of the same village (in case of branches at unbanked places).8. Opening, shifting and closure of Permanent and Temporary Booths.

a). Permanent Booths;

Licence will be freely granted to banks for opening of permanent booth(s) on

account of the activities specified hereunder:

i) Receiving utility bills, Government dues/revenue/cash, collection of fee/dues of educational institutions, receiving cash from patients of hospitals, visa fee or other related cash receipt functions on the recommendations of the concerned Government Departments/Institutions and for providing limited banking facilities (i.e. cash payment and receipt of cash and cheques/demand draft/pay order only) in the premises of Embassies, Consulates, Foreign Missions and International Financial Institutions in Pakistan, on their specific request.

ii) For exchange of foreign currency subject to normal exchange control regulations at the port of entry in Pakistan.

iii) National Bank of Pakistan will be allowed to open booths for receiving railway cash and other Government dues on the recommendations of the Department concerned.

b). Temporary Booths;

Banks may open temporary booths without prior permission of State Bank of Pakistan on account of the activities specified hereunder:

i) For the purpose of affording banking facilities to the public on the occasion of an exhibition, a conference or a mela or any other like occasion, for a period not exceeding one month, a temporary place of business in such locality where that bank has already a place of business.

ii) For making on the spot payment to growers of agricultural commodities during the crop season as also to the persons in the calamity hit areas.

iii) For providing limited banking facilities to the participants of international Seminars, trade fairs, exhibitions, sporting and cultural events, conferences and to members of National/Provincial Assemblies and Senate when in session.

iv) For providing banking facilities to the Hajj Pilgrims, i.e. sale/purchase of Hajj Notes relating to foreign currency, travellers' cheques to the intending/returning Hajis during Hajj season.

The above temporary booths will be opened subject to the following conditions:

a. No business other than specified above will be undertaken at the place of business.

b. The date of opening/closing of these booths should be intimated to the State Bank within seven days from the date of opening/closing of such booths on the prescribed proforma (Annexure-B).

c. Branches of the bank are not functioning at any of the proposed places/centers.9. Banks will be free to close any of their existing booths operating at banked places, except for Utility Bills Collection Booths, without obtaining prior approval of State Bank. However, for closure of Utility Bills Collection Booths, banks will be required to obtain prior approval of SBP. Such requests will be considered /decided on merit. In all cases of closure of booths, intimation should reach SBP within 21 days, on the prescribed format along-with original licence of the closed booth for its cancellation.

10. Similarly, banks can shift their permanent booths (other than Utility Bills Collection Booths) within the same city/town/village without prior approval of SBP. However, for shifting Utility Bills Collection Booths including shifting into branch premises, banks will be required to obtain prior approval of SBP, provided such shifting may not attract public complaints. However, licence of a booth shifted into branch premises shall stand cancelled if SBP allows such shifting. In such a case the bank will open a separate counter in the said branch for collection of utility bills. In all cases of shifting of booths, intimation should be given to SBP within 15 days from the date of shifting.

11. Every licensed branch of a scheduled bank shall carry a name and invariably be required to prominently display outside the branch.

12. A processing fee @ Rs.25,000/- per branch applied in Annual Branch Expansion Plan (ABEP) has been fixed with effect from Annual Branch Expansion Plan (ABEP) for 2003. The banks while submitting their ABEP shall invariably enclose a cheque in the name of State Bank of Pakistan as processing fee. The ABEP without the amount of processing fee shall not be entertained. The processing fee will be non-refundable.

13. Banks shall render themselves liable to pay fine as provided in BPRD Circular No.21 dated the 9th June,

1999 for non-compliance/violation of any of the provisions of the Branch Licencing Policy in addition to the penalty mentioned in paragraph (2) above.

 

 

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