The State Bank of Pakistan issued new rules. They are to stop commercial banks from blocking or freezing bank accounts without proper verification. According to the central bank, commercial banks must also report all individual account transactions of 10 crore rupees or more twice a year starting July 1, 2026.
The State Bank of Pakistan issued a regular circular to all commercial banks with two big decisions. The central bank based these decisions on the latest finance bill and recent orders from the Islamabad High Court. The new rules aim to protect regular citizens from wrongful account closures while keeping huge money transfers under watch.
No Freezing Without Proof
The State Bank of Pakistan told banks that they cannot block debit cards, put operational limits, or freeze any bank account without a solid legal reason. According to the instructions, banks must verify the details completely before taking action.
The Islamabad High Court previously stopped authorities from blocking accounts without lawful power. Experts said the Federal Board of Revenue (FBR) will now find it more difficult to freeze bank accounts. The central bank stated that cautious or accidental account blocks must not result in financial losses for customers.
10 Crore Transactions on Radar
The State Bank of Pakistan directed all banks to report financial transactions that cross 10 crore rupees. This rule applies to regular accounts, term deposits, and all other saving deposits. According to the central bank, the reporting follows a six-month cycle twice a year.
- The first cycle runs from July 1, 2026, to December 2026.
- The second cycle runs from January 2027 to June 2027.
Experts said that tax authorities will match this information with the tax returns of the account holders. The central bank also instructed banks to create internal systems immediately to share this data. The State Bank of Pakistan added that the tax department must keep this financial data completely confidential under the law.
