The State Bank of Pakistan has barred banks across the country from blocking accounts without a legal reason, proper verification, and approval from the competent authority.
The move comes after an Islamabad High Court order aimed at protecting account holders from unlawful or unnecessary restrictions.
According to the new guidelines, banks must ensure that any debit block, operational restriction, or account freezing is carried out strictly in accordance with the law.
The State Bank of Pakistan has directed banks not to cause harm to account holders through unintentional actions or precautionary restrictions imposed without proper legal backing.
Court order implemented
The SBP issued the fresh instructions to banks nationwide in compliance with the Islamabad High Court’s order.
The central bank has also submitted its implementation report regarding the court order to the Islamabad High Court.
Internal mechanism to be developed
Justice Arbab Muhammad Tahir had directed the State Bank to formulate an internal mechanism and issue clear instructions to banks.
Following the court’s direction, the State Bank said banks may also develop appropriate internal systems to ensure full implementation of the new guidelines.
Account holders to get greater protection
The Islamabad High Court has restrained banks from blocking bank accounts without legal authority and approval from the competent authority.
The latest guidelines are expected to provide greater protection to account holders and ensure that account freezing or restrictions are not imposed without due process.
