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.