The Presidents / Chief Executives,
All Banks / DFI’s

Dear Sirs/Madam,

CLASSIFICATION OF DORMANT / INOPERATIVE ACCOUNTS

PIt has been observed that banks are classifying the deposit accounts as dormant / inoperative without intimating the same to their customers, which in turn results in considerable inconvenience to account holders.

2. It has, therefore, been decided that 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. Accordingly, on the basis of the approved policy, a clause in the Account Opening Form (AOF) may be added informing the prospective account holder about the bank’s policies with regard to the classification of accounts as dormant / inoperative and its subsequent reactivation. For the existing account holders, the bank should advise in writing the same while sending the half yearly statement of account or through a separate letter, as they deem fit.

3. The account holders whose accounts have already been classified as dormant / inoperative may also be advised. The foregoing exercise may be completed by 30-06-2006 positively and thereafter a compliance report along with a copy of policy may be sent to SBP by 15th July 2006

4. Please acknowledge receipt