HCSTSI concerned over holding of traders’ funds by banks

HYDERABAD: President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon, has expressed serious concern over the growing practice of banks placing hold on legitimate and lawful business funds in traders’ and businesspersons’ accounts without prior written notice, clear justification, or a defined timeframe.

He stated that during the recent period, the Chamber has received numerous complaints from traders, brokers, and small industrialists, reporting that despite the completion of transactions and submission of all required documents, their funds are being kept on hold for an indefinite period. Such actions, he said, are severely disrupting business operations and placing traders under intense financial pressure and uncertainty.

The HCSTSI President clarified that the Chamber fully supports the laws and regulations of the State Bank of Pakistan, including AML/CTF requirements and the banks’ right to conduct due diligence, as a transparent and secure banking system is essential for the national economy. However, he emphasized that withholding legitimate business proceeds for months without written explanation, regulatory reference, or a clear resolution timeline is unacceptable under any circumstances.

Saleem Memon noted that this unprofessional conduct is adversely affecting traders’ cash flows, preventing them from meeting business commitments, undermining market confidence, and particularly harming small and medium-sized enterprises (SMEs), which are already struggling under inflationary and economic pressures.

Referring to members’ complaints, he further stated that in many cases account holders repeatedly approach bank branches, only to receive verbal responses such as “the matter is under process” or “awaiting a response,” while no written reply or legal justification is provided, which clearly contradicts the principles of transparent and fair banking practices.

Copyright Business Recorder, 2026