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Pakistan: Penalty Scale for Microfinance Banks / Institutions
Penalty for violating statutory requirements
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This document is a law containing the penalties applicable in case of defiance by MFIs. The directive details the nature of violations and the relevant fines payable:
- Violation of Cash Reserve Requirement:
- Fine Payable: Rs.69/- per Rs.100,000/- on the shortfall on fixed minimum;
- For continued shortfall the penalty to be increased to Rs.86/- per Rs.100,000/- or part thereof per day.
- Breach of Statutory Liquidity Requirement:
- Fine Payable: Rs.89/- per Rs.100,000/- on the shortfall on fixed minimum.
- Contravention of Prudential Regulations for MFBs / MFIs:
- Fine Applicable: Rs.10,000/- per case and Rs.500/- per day for the period of the irregularity;
- Disciplinary action against responsible official(s).
- Infringement of instructions regarding location, opening, shifting and closure of branches:
- Fine Payable: Rs.20,000/- per case and Rs.1000/-per day for the period of the irregularity;
- Disciplinary action against responsible officials (s).
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