Senate Extends Dormant Account Closure SBP Cuts Rate
The revelation was made during the meeting of the Senate’s standing committee on finance.
According to the State Bank of Pakistan (SBP), 14 million accounts of various banks have been temporarily inactive for a decade.
A proposal has been made to extend the period for permanently closing these dormant accounts from 10 years to 15 years.
State Bank officials noted that millions of account holders reactivate their temporarily dormant accounts even after 10 years.
The Senate body has approved the State Bank’s proposal to allow the reactivation of temporarily dormant accounts.
SBP cuts key policy rate by 100bps to 19.5pc
What is a dormant bank account?
As per the Bank’s policy, a Current or Savings Account is considered dormant if there has been no customer-initiated transaction for one year. For security purposes, the Bank exercises increased caution on all such accounts.
What happens when an account goes dormant?
A dormant account is an account that has had no financial activity for a long time, except for the posting of interest. After the dormancy period, which varies by state, dormant accounts become the unclaimed property of the state.
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