ISLAMABAD: The State Bank of Pakistan (SBP) has directed all commercial and microfinance banks across the country to refrain from freezing or restricting customer accounts unless such action is fully backed by law and proper authorization.
The directive comes in compliance with an order of the Islamabad High Court (IHC), which had asked the central bank to ensure that no citizen’s account is blocked without lawful basis. Responding to the court, the SBP informed it that fresh instructions have already been dispatched to banks nationwide.
According to the new instructions, banks are barred from imposing debit blocks, operational restrictions, or outright freezes on accounts unless the action is strictly in accordance with the law, backed by lawful authority, and carried out only after proper verification.
The central bank has further directed banks to tighten their internal compliance mechanisms so that customers are not subjected to unnecessary or mistaken restrictions on their accounts. The SBP made it clear that precautionary measures taken without legal backing must not become a source of financial hardship for account holders.
ALSO READ >>> >>> PIA management officially handed over to Arif Habib consortium
It may be recalled that the matter originated from a ruling by Justice Arbab Muhammad Tahir of the IHC, who held that banks have no authority to freeze accounts without lawful grounds. In his order, the judge had directed the SBP to issue clear and comprehensive guidelines so that any restriction on a bank account is imposed only after due legal process is followed.
Officials say the fresh SBP instructions are expected to offer stronger protection to ordinary account holders, ensuring that freezes or restrictions are imposed strictly on legal grounds and after proper verification — sparing the public from arbitrary financial inconvenience.
