Circulars/Notifications - Banking Policy Department  
 BPD CIRCULAR NO.37
November 03, 2003 

The Chief Executives,
All Banks/DFIs.

 

Dear Sirs / Madam,

CONSTITUTION OF SBP COMMITTEE FOR RESOLUTION OF
DISPUTES BETWEEN BORROWERS AND BANKS

Please refer to BPD Circular No.24 dated 4th July 2003 on the above subject.
A number of representations from various quarters, including the ICAP, were received in which it was requested that instead of condition of chartered accountancy firms listed on SBP panel, all chartered accountants listed with ICAP may be allowed to represent the borrowers. Further, in view of issues relating to legal matters and Islamic banking, it has been now decided to expand the Committee. Keeping this in view and in order to resolve issues expeditiously, SBP, in exercise of its powers vested under section 41 of BCO 1962, has substituted BPD Circular 24 of 2003 as under:
The Resolution Committee (RC) will consider cases of charging mark up on mark up by the banks in violation of guidelines issued by SBP for elimination of ‘riba’ from banking system. The Committee will comprise of the following members.
1. Director Banking Policy Department, Chairman of the Committee.
2. A representative from Banking Inspection Department of SBP who will be a Chartered Accountant – (Permanent Member).
3. A representative of the concerned bank – (Revolving Member).
4. A Chartered Accountant registered with ICAP to be appointed by the borrower to represent him/her – (Revolving Member).
5. Legal Counsel, Banking Policy Department, State Bank of Pakistan (Permanent member)
6. Joint Director Complaints Cell, SBP, Member/Secretary.
The Resolution Committee shall examine the complaints and decide the issues in terms of guidelines issued by SBP from time to time and may also conciliate in these complaints in determining the outstanding amount in case issue is not settled otherwise keeping in view the cash flow, value of the collateral etc. The decision of the committee will be binding on the bank and complainant/borrower.

 

Please acknowledge receipt.

Yours faithfully,
(MUHAMMAD ASHRAF KHAN)
Sr. Joint Director

BPD Circulars/ Circular Letters issued in 2002
       
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