Forms of business carried out by a banking company under section 7 of theBanking companies ordinance 1962.

Forms of business carried out by a banking company under section 7 of the Ordinance

A banking company may engage in any one or more of the following forms of business, namely

• Borrowing, raising, or taking up of money
• the lending or advancing of money either upon or without security 
• the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hundies, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates,

[The different instruments such as bill of exchange can be drawn, discounted and endorsed under the provisions of this Ordinance. All instruments including promissory notes, bills, bills of lading, drafts and debentures play an important role in various transactions carried out by the banks and provide liquidity to financial system. Role of bill of exchange is particularly very important. We shall discuss the concept of bill of exchange in greater details. Some aspects of bill of exchange are discussed so that the purpose and scope of these provisions may be duly understood.