Karachi (Commerce Desk) The State Bank of Pakistan has directed banks across the country not to block or freeze any customer's bank account without legal justification, approval from the competent authority and proper verification.
According to the directive issued in light of court orders, account holders should not suffer any unnecessary loss due to unintended or precautionary restrictions.
According to the State Bank, any debit block, operational restriction or freezing of a bank account may only be imposed in accordance with the law and on the basis of relevant legal authority. In addition, proper verification and approval from the competent authority must be ensured before taking any action.
The directive also instructed banks to establish effective internal systems for full compliance so that unnecessary restrictions are not imposed on any customer without legal authority.
It is worth mentioning that the Islamabad High Court had already restrained authorities from blocking bank accounts without legal authority and approval from the competent authority. Justice Arbab Muhammad Tahir had directed the State Bank to formulate a clear procedure and guidelines in this regard, and a compliance report has also been submitted to the court.