Banking system plays a very important role in the economy of every state. In Pakistan, the Banking system is progressing very rapidly. Many types of banks are operating in our money market and are generally divided into two main groups Scheduled and Non-Scheduled Banks. Both are the most important branches and groups of the banking system in Pakistan. Here below we are going to describe the Difference Between Scheduled And Non-Scheduled Banks In Pakistan in details. Keep reading this article till the end will surely help you in this regard for
Difference Between Scheduled And Non-Scheduled Banks In Pakistan
Schedule Banks in Pakistan:
The banks which are registered in the list of Central Bank under its charter are called Schedules Bank. Scheduled banks are bound to be performing their banking services under the policies of the Central bank. In schedule bank, there is clearing facility available. The advances under these banks are more than those of non scheduled banks in Pakistan. These banks are also able to perform foreign transactions whereas Non scheduled banks cannot perform foreign transactions.
Non-Schedule Banks in Pakistan:
The banks which are not registered in the list of Central Bank under its charter are called Non-Scheduled Banks. The Non-Scheduled banks are not bound to be performing their banking services under the policies of Central Bank. Non-Scheduled banks are not liable to follow any instructions from Central Bank. Paid up capital is not fixed in case of a non-scheduled bank. For further difference must read the below listed key difference between Scheduled and Non-Scheduled Banks in Pakistan!
Key Difference Between Scheduled And Non-Scheduled Banks In Pakistan:
Following are the main points from which you can easily distinguish between Scheduled and Non-Scheduled Banks in Pakistan.
|Schedule Banks||Non-Schedule Banks|
|The scheduled bank is entitled to borrow money from Central Bank for regular banking purpose||Non-Scheduled banks are not entitled to borrow money from Central Bank for regular banking purpose.
|Scheduled banks are bound to be performing banking services according to policies and instructions by the Central Bank||Non-Scheduled banks are not bound to perform their banking services according to the policies of Central Bank.|
|Clearing facility is available in the scheduled bank||There is no clearing facility is available for Non-Scheduled banks.|
|Scheduled banks are able to transfer money||Non-Scheduled banks are not able to transfer money|
|Scheduled banks can operate foreign transactions||Non-Scheduled banks cannot operate foreign transactions|
|Scheduled banks can easily take loans from the Central bank||Non-Scheduled bank cannot take a loan from Central Bank in Pakistan|