The President/Chief Executive,

All Banks/DFIs,

Dear Sir/Madam,

Amendment in Prudential Regulations G-1

1. Please refer to Section – C of Prudential Regulations G-1 regarding Management as notified vide BPRD Circular Letter No. 12 dated April 24, 2009.
2. It has been decided to substitute Para C-3 of the above mentioned section as under:

“3. The Chairman/Board shall not appoint an `Advisor’ in any capacity. Accordingly, all Banks/DFIs are advised to ensure appropriate skill mix of the Board keeping in view the overall risk profile of the institution.”

3. All banks/DFIs are advised to ensure compliance within six months of the date of issuance of the circular letter. After which, the non-compliance shall attract punitive action under relevant provisions of the Banking Companies Ordinance, 1962.
4. Please acknowledge receipt.