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Today's Paper | May 19, 2024

Published 17 Mar, 2024 07:36am

The logic and hassle of dormant accounts

FOR the common man, banks are the safest place to put their money in. People keep their savings in the banks with the trust that their money is safe, and they can have it whenever there is a need. The account holder receives a rude shock when one day he rushes to the bank to withdraw his money for some dire need, but is told that his account is ‘dormant’ and that he cannot withdraw money from his own account.

Marking an account dormant by the banks is more than changing the status of the account in the record from active to inactive. It is snatching the right of the account holder to claim his own money. He no longer has access to the money about which he was feeling safe and secure.

One of the primary reasons for marking the account dormant is that the depositor did not make any withdrawals from his account over six consecutive months. Why would he do that? He is saving money. He wants to use the money when there is a need. He wants to ensure that at the time of need, the money is there for him to withdraw. Is it a crime if someone does not withdraw his money for six months?

There are lengthy formalities to be fulfilled by those who want to make their account active again. These included biometric verification, documents for identity verification, and letters of proof that the money belongs to the depositor. Yes, the account holder needs to prove that it is his money. Why?

There are other frustrating, mea- ningless and completely impractical requirements. And all this happens simply because one failed to withdraw money for six months. This is simply preposterous.

All commercial banks have a basic, professional duty to let potential account-holders know about the rules at the outset. Bank managers must inform the customers about their rights and limitations. On its part, the State Bank of Pakistan should revisit the matter of dormant accounts.

Farzana Shamim
Sukkur

Published in Dawn, March 17th, 2024

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