State Bank stopped banks from blocking accounts without legal basis.

ISLAMABAD – State Bank of Pakistan has directed all banks not to block customer accounts without valid legal reason, approval from competent authority and proper verification.

The directive was submitted to the Islamabad High Court as part of the compliance report after the court order.

Justice Arbab Muhammad Tahir had directed the Central Bank to create an internal mechanism and issue clear instructions to the commercial banks.

In its report, the State Bank has also directed banks to ensure that account holders are not adversely affected by involuntary or precautionary restrictions.

Following the direction of the court, the central bank has issued a new circular to the banks across the country. Financial institutions may also develop appropriate internal mechanisms to ensure full compliance with the new guidelines, it said.

The post State Bank stopped banks from blocking accounts without legal basis appeared first on Daily Pakistan English News.

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