KARACHI: Cooperative banks in the country have been placed under partial control of the State Bank of Pakistan. This has been done through limited application of the Banking Companies Ordinance, 1962, to cooperative banks in an obvious attempt to ensure their solvency.

Even within this limited application of the Ordinance, the State Bank can recommend the winding up of a cooperative bank in a manner applicable to any other banking company in Pakistan.

But the main powers entrusted to the State Bank relate to inspection and issuing of directions to cooperative banks as prescribed under Section 40 and 41 of the Ordinance.

The new powers appear to have been given in the light of the findings of the Credit Inquiry Commission that the management and working of the cooperative banks left much to be desired.

The commission was of the view that the existing state of affairs could not indefinitely continue without a collapse and a consequent loss of public confidence in the cooperative banks as has already happened in East Pakistan.—Staff Correspondent

China rejects Indian note

NEW DELHI: China has categorically rejected an “unjustifiable protest” of the Indian Government against the Sino-Pakistan negotiations for a provisional boundary agreement between Sinkiang and Azad Kashmir.—Agencies