ISLAMABAD – The State Bank of Pakistan has instructed all banks not to block customers’ accounts without a valid legal reason, approval from the competent authority, and proper verification.
The directive was submitted to the Islamabad High Court as part of a compliance report following a court order.
Justice Arbab Muhammad Tahir had directed the central bank to establish an internal mechanism and issue clear guidelines to commercial banks.
In its report, the State Bank also instructed banks to ensure that account holders are not adversely affected by unintended or precautionary restrictions imposed without due process.
Following the court’s directions, the central bank has issued a new circular to banks across the country. It said financial institutions may also develop appropriate internal mechanisms to ensure full compliance with the new guidelines.
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