KARACHI, Oct 11: The State Bank of Pakistan has directed all banks to immediately develop a well-defined and transparent policy regarding the dormant accounts. The SBP in a circular issued on Tuesday observed that the banks were classifying the deposit accounts as dormant or inoperative without intimating the same to accountholders causing considerable inconvenience to them.

“Banks should immediately develop a well-defined and transparent policy, if not existing presently, duly approved by the president of the bank for the purpose,” says the circular.

It further said that a clause in the Account Opening Form (AOF) should be added informing the prospective accountholders about the bank’s policies with regard to the classification of accounts as dormant or inoperative and its subsequent reactivation.

The banks were further directed that they should also inform their accountholders in writing the same while sending the half yearly account statements through a separate letter.

Banks were asked to complete the exercise by June 30, 2006 and a compliance report along with a copy of policy should be sent to the SBP by July 15, 2006.