During a recent session of the Senate Standing Committee on Finance, it was disclosed that an astonishing Rs97 billion remains dormant in Pakistani bank accounts, forgotten by their owners.
Extensive Dormancy Across Accounts
This substantial sum is spread across approximately 10.4 million accounts that have been temporarily closed in various banks throughout the country. The meeting, led by Senator Saleem Mandviwala, revealed that these accounts have been inactive for over a decade. Officials from the State Bank of Pakistan provided details on the dormant funds, noting that many account holders appear to have lost track of their money.
Proposed Changes to Dormancy Regulations
The committee discussed extending the current 10-year period before an account is deemed permanently closed to 15 years. Present regulations stipulate that if an account remains inactive for 10 years, and after sending three notifications to the account holder without a reply, the funds are transferred to the State Bank.
Ongoing Requests for Account Reactivation
Despite the prolonged inactivity, many individuals continue to seek account reactivation from banks. This trend highlights the importance of having a flexible system for reactivating dormant accounts.
Committee’s Approval for Reactivation
The committee endorsed the State Bank’s plan to allow the reactivation of temporarily closed accounts. This move aims to enable citizens to reclaim their forgotten funds, potentially stimulating economic activity.
This decision is anticipated to benefit numerous account holders who may not have realized the status of their accounts, offering them a chance to recover their funds.
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