Banking (Amendment) Act, 1988

3. The principal Act is amended by the insertion imme­ mediately after section eleven of the following new section: Insertion of' sectioa IA HA. No bank or financial institution .sh_all operate Branches more than four branches in an urban area unless it opens a branch in a rural area for every subsequent branch opened in an urban area,

4. (1) Section eighteen of the principal Act is amended­ (a) by the deletion of subsection (1) and the substitution Amendment of section 18 therefor of the following subsection: (I) Subject to subsection (3), no bank shall be or remain registered unless it maintains paid-up equity cap ital amounting to not less than- (a) in the case of a bank in which the Govern. ment holds all or some of the shares, Ks,000,000; (b) in the ease of any other bank, K20,000 ooo,; Single copi68 of this Act may be obtained from the Government Printer, P.O. Box 30136, Lusaka. Price 20n.. 148 No: 39 .of· 1988] Banking (Amendment) (b) in subsection (2) by the deletion of "K200,MO" and tne substitution therefor of "K2,000,000 "; (c) by the insertion immediately after subsection (2) of the following new subsections: (3) Notwithstanding subsection (1), the minimum paid-up equity capifol shall, where the first branch of business is in a rural area-- (a) for a bank referred tu in paragraph (a) of subsection (1), be K2,500,000; (b) for a. bank referred to in paragraph (b) of subsection (1), be Kl0,000,000; (c) for a financial institution, be Kl,000,000.; (4) Subsection (3) shall only apply to a bank or financial institution if- (a) the bank or financial institution in its applic.,tion for registration had declared that it would open its first branch of business in a rural area within a period of not more than six months; and (b) the Registrar had made the declarat.ion referred to in paragraph (a) a. condition of registration.; (5) Where the first throe branches of a. bank or financial institution are in a rural area, section llA shall not apply to that bank or financial institution. (2) The amendments made by this section shall not apply to any bank registered before the commencement of this Act; and accordingly, m relation to any sucn bank, section eighteen of the principal Act shall remain in force. J