The State Bank of Pakistan (SBP) recently announced a major development regarding the handling of unclaimed deposits. As of December 31, 2023, banks and Development Financial Institutions (DFIs) in the country have surrendered all unclaimed funds to the central bank. These deposits, which have remained inactive for over ten years, are now under SBP’s custodianship, providing a safeguard for these funds while offering a clear process for reclaiming them.
Unclaimed deposits are defined as funds that have remained untouched by account holders for a decade. This includes various types of deposits, such as savings accounts, fixed deposits, cheques, drafts, and bills of exchange. The Banking Companies Ordinance of 1962 mandates that banks report these funds to the SBP after they have been inactive for ten years, except in cases where the deposits are linked to minors, government entities, or courts of law.
While the unclaimed funds are now under the control of the SBP, individuals who believe they have a right to these funds are still able to claim them. To do so, claimants must follow a specific procedure, designed to ensure transparency and ease in the process. The SBP’s move to take charge of these deposits is in compliance with Section 31 of the Banking Companies Ordinance, which requires banks and DFIs to surrender all unclaimed funds to the central bank for safekeeping. This step is part of broader efforts to maintain the integrity of the financial system and ensure that inactive funds are not left unaccounted for.
To aid claimants in locating their unclaimed deposits, the SBP has made the process more accessible through its official website. Individuals can visit the SBP’s portal, where a searchable list of unclaimed deposits is available. This list contains important details such as the name of the bank or DFI, the branch location, the account holder’s name, CNIC or passport number, the account holder’s address, and the amount of the unclaimed deposit. By providing this information, the SBP has simplified the process of finding and verifying whether a claimant is entitled to any of these dormant funds.
When it comes to filing a claim, the process is fairly straightforward, although claimants will need to submit several documents to validate their request. The first step is to visit the branch where the account was originally opened. If the branch is no longer operational or has been relocated, claimants can approach any branch of the same bank. At the branch, the claimant must submit an application signed by the account holder, along with a valid CNIC. In cases where the account holder is deceased, the claimant must also provide a succession certificate issued by a competent court. Furthermore, for claims under Rs. 100,000, an indemnity bond on non-judicial stamp paper is required.
Once the necessary paperwork is submitted, the bank will forward the claim to the SBP for verification. After the claim is reviewed and confirmed, the SBP will process the refund and return the amount to the claimant through the bank. The SBP has emphasized its commitment to ensuring a transparent process, and the public has been assured that these funds will be handled with the utmost care and efficiency.
This initiative by the SBP is part of a broader effort to ensure transparency and accountability within Pakistan’s banking sector. It also reflects the increasing reliance on digital tools to make financial processes more accessible and efficient. With the growing digitalization of financial services, such measures are pivotal in helping individuals recover dormant assets and maintain trust in the banking system. By streamlining the process of claiming unclaimed deposits, the SBP is providing a valuable service to the public, ensuring that funds are not forgotten and are returned to their rightful owners in an orderly manner.