Monday, 4 July 2011

Functions of Banking or Banking Functions under Companies Ordinance1962

Following are the banking functions or functions of banking under Section 7 of the Banking Companies Ordinance1962:
  • Accepting Deposit for lending or investment
  • Discounting B/E and other Negotiable Instrument
  • Collecting Negotiable Instruments on behalf of the customer
  • Buying and selling bullion and foreign Exchange
  • Granting letter of Credit to customer
  • Receiving valuable for safe custody
  • Underwriting and dealing in stock, share, debenture and other securities on behalf of the customer and other
  • Acting as agent to his customer, undertaking and executing trust.
  • Carrying on guarantees and indemnities position
  • Dealing with any property that may come to it as security in satisfaction of its outstanding claims.

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