UNCLAIMED DEPOSITS – SECTION 31 OF BCO, 1962
June 12, 2004
BPD Circular Letter No.21 of 2004
All Banks / DFIs
Dear Sirs / Madam,
Please refer to BRD Circular No.21 dated the 23rd December, 1992 on the above subject.
2. In terms of section 31 of Banking Companies Ordinance, 1962 all banking companies in Pakistan are required to surrender to SBP, unclaimed deposits, which have not been operated for the last ten years except a deposit in the name of a minor or a Government or a court of law.
3. Some of the banks have sought clarification as to whether the payslips/ payorders/ DDs/ TTs/ MTs issued in the name of Government agencies lying with the branches under bills payable account for over 10 years are also required to be surrendered to SBP under Section 31 of BCO, 1962.
4. In this regard, it is clarified that clause (a) of sub-section (1) of section 31 of Banking Companies Ordinance, 1962 clearly indicates that the procedure provided for the banking companies in sub-section (1) is to be followed in cases of deposits. Such deposit may be any deposit as referred to in clauses (a) to (d) of sub-section (1). The exemption referred to in clause (a) of sub-section (1) of Section 31 of Banking Companies Ordinance, 1962 is equally applicable if beneficiary of a cheque, draft or bill of exchange or any other instrument is a minor or a government or a court of law. However, the banks/DFIs would be required to intimate, in writing, the government agencies, minors and court of law for settlement of their deposits/instruments lying with them for more than ten years.
5. Please acknowledge receipt.
(Mohammad Kamran Shehzad)