Khashif Talks Unlock Knowledge & Explore with Khashif Talks!
In a recent meeting of the Senate Standing Committee on Finance, it was revealed that Pakistani citizens have forgotten about Rs97 billion lying dormant in their bank accounts. This significant sum is spread across 10.4 million temporarily closed accounts in various banks throughout the country.
Dormant Accounts and Forgotten Funds
The meeting, chaired by Senator Saleem Mandviwala, highlighted that these accounts have remained inactive for a decade. Officials from the State Bank of Pakistan informed the committee about the existence of these funds, pointing out that many account holders appear to have forgotten about the money in their accounts.
Currently, if an account remains inactive for 10 years, and after three notices are sent to the account holder without a response, the funds are transferred to the State Bank of Pakistan. However, it was proposed during the briefing that the existing 10-year period for considering such accounts as permanently closed be extended to 15 years.
The Need for Flexibility
Despite a decade of dormancy, millions of account holders still approach banks to reactivate their accounts. This trend underscores the need for a more flexible approach to account reactivation, allowing citizens the opportunity to reclaim their forgotten funds.
The committee approved the State Bank’s proposal to reactivate temporarily closed accounts. This decision is expected to provide relief to many account holders who may not have been aware of the dormant status of their accounts.
Implications for Economic Activity
Reactivating these accounts could potentially boost economic activity by allowing citizens access to their funds, which have remained unclaimed for years. This move also reflects a more lenient approach by the authorities, aiming to enhance financial inclusion and awareness among citizens.
The State Bank’s proposal to extend the dormancy period to 15 years will allow more time for account holders to reactivate their accounts and ensure that they do not lose access to their savings.
