The State Bank of Pakistan on Wednesday announced Amendment to Regulation M-1 (Customer Due Diligence). The SBP has asked banks and DFIs to refer Prudential Regulation M-1 for Corporate/Commercial Banking as amended vide BPRD Circular Letter No 07 dated March 09, 2009.
According to SBP circular BPRD Circular Letter No 32 issued on Wednesday it has been decided to substitute the paragraph 7(a) of Prudential Regulation M-1 with the following: "7(a) For customers/clients whose accounts are either dormant as per bank''s own policy or an attested copy of account holder''s Computerised National Identity Card (CNIC) is not available in bank''s/DFIs record, bank/DFIs may allow credit entries in such accounts.
Debit transactions/withdrawals shall not be allowed until the account holder produces an attested copy of his/her CNIC and fulfils all other formalities for activation of the account. However, transactions eg debits under the recovery of loans and mark-up, etc, any permissible bank charges, government duties or levies and instruction issued under any law or from the court will not be subject to debit or withdrawal restriction," the SBP circular said.
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