The State Bank of Pakistan (SBP) has decided to allow further extension to all the banks for completion of proper arrangements/formalities for depositing utility bills up to August 31, 2006.
It also announced that no further extension would be allowed. The banks failing to finalise the arrangements within the given period will be considered as non-compliant banks and the same will be indicated in the report to the Supreme Court.
The SBP will carry out surprise checks of the branches of the banks to ensure adherence to the above instructions. Any violation of SBP instructions in this regard will attract the penal action under Section 83 (5) of the Banking Companies Ordinance, 1962.
The SBP in BPD circular No 3 dated June 5, 2006, on the captioned "Suo-Motu case No 4/2006 - Proper Arrangements in Commercial Banks for Depositing Utility Bill", banks were directed to complete all necessary formalities with the utility companies and submit a compliance report to the SBP latest by July 31, 2006.