Rs97 Billion Lie Dormant in Inactive Bank Accounts

State Bank of Pakistan (SBP) officials revealed that Rs97 billion are lying in dormant accounts. These accounts have been temporarily inactive for a decade, with no customer-initiated transactions.

Dormant Accounts: A Growing Concern

The SBP disclosed that 14 million accounts of various banks have been dormant for 10 years. This raises concerns about the banking sector’s efficiency and the impact on the economy.

Proposal to Extend Closure Period

To address this issue, a proposal has been made to extend the period for permanently closing such accounts from 10 to 15 years. This will give account holders more time to reactivate their accounts.

Millions Reactivate Accounts

Interestingly, millions of account holders reactivate their such accounts even after 10 years. This highlights the need for a more flexible approach to managing these accounts.

Senate Approval

The Senate body has approved the State Bank’s proposal to allow reactivation of such accounts. This move is expected to benefit millions of account holders.

What is a Dormant Bank Account?

A dormant account is an account with no customer-initiated transactions for one year, with only interest posted. This can happen due to various reasons, including account holder’s negligence or lack of awareness.

What Happens to Dormant Accounts?

These accounts become unclaimed property of the state after the dormancy period. This can lead to a significant loss for account holders.

Also read:

Pakistan’s $7 Billion IMF Bailout Package Delayed Until September 6