The State Bank of Pakistan has directed banks across the country not to block customer accounts without legal authority, proper verification, and approval from the relevant competent authority. The new guidelines aim to protect account holders from unnecessary restrictions and ensure that banking actions remain fully compliant with the law.
The decision follows an order issued by the Islamabad High Court, which instructed the central bank to strengthen safeguards against unlawful account restrictions. Under the revised instructions, banks must ensure that any debit block, operational limitation, or account freeze is imposed only after completing the required legal process and obtaining proper authorisation.
The State Bank has also instructed financial institutions to avoid causing hardship to customers through precautionary actions that lack a clear legal basis. Furthermore, the central bank emphasised that banks should carefully verify all relevant information before restricting access to customer accounts, reducing the risk of wrongful or unintended disruptions.
The new directives were issued in compliance with the Islamabad High Court’s ruling, and the State Bank has already submitted an implementation report before the court. In addition, banks have been encouraged to establish internal systems and monitoring mechanisms that ensure consistent implementation of the revised guidelines across their operations.
Justice Arbab Muhammad Tahir had directed the State Bank to develop a clear framework governing account restrictions and communicate it to all banks. As a result, the latest policy is expected to strengthen customer protections, improve transparency, and ensure that bank accounts cannot be frozen without following due legal process.