Islamabad (HRNW)- The State Bank of Pakistan (SBP) has directed banks across the country not to freeze or restrict customers’ bank accounts without legal authority, proper approval, and verification by the competent authority.
The new guidelines were issued following directions from the Islamabad High Court, instructing banks to ensure that account holders are not adversely affected by unintentional or precautionary restrictions imposed without lawful grounds.
According to the SBP’s instructions, any action involving a debit block, operational restriction, or freezing of a bank account must strictly comply with the law. Banks have been directed to take such measures only after obtaining the necessary legal authorization and completing proper verification.
The central bank also instructed financial institutions to establish effective internal control mechanisms to ensure full compliance with the directives and to prevent unnecessary inconvenience or financial loss to customers caused by unauthorized restrictions.
The move follows an Islamabad High Court ruling that prohibited the freezing of bank accounts without legal authority and approval from the relevant competent authority.
Justice Arbab Muhammad Tahir had directed the State Bank to develop appropriate internal procedures and issue instructions to all banks. The SBP has since submitted a compliance report to the Islamabad High Court regarding the implementation of the court’s orders.
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