Circulars/Notifications - Banking Policy & Regulations Department  
 BPD Circular No. 07 of 2006
July 21, 2006 

The Presidents / Chief Executives
All Banks / DFIs

Dear Sirs / Madam,

MASTER CIRCULAR- UNCLAIMED DEPOSIT

 

In terms of Section 31 of Banking Companies Ordinance, 1962 all Banks/DFIs in Pakistan are required to surrender to State Bank of Pakistan (SBP) all those deposits which have not been operated upon during the period of last ten years, except deposits in the name of a minor or a Government or a court of law, as stipulated under Subsection (1) of Section 31 of Banking Companies Ordinance (BCO), 1962.

2. In order to facilitate Banks/DFIs, instructions on the subject relating to definition, reporting, surrendering of unclaimed deposits, issuance of notice to the account holder, insertion of information in account opening form and procedure for refund of unclaimed deposits, etc issued since 1968 till to date have been reviewed and consolidated hereunder:-

i) DEFINITION OF UNCLAIMED DEPOSIT / INSTRUMENT

A debt payable either in Pakistani currency or any other (foreign) currency is owing by a banking company by reason of a deposit (time/demand deposit, or any other kind of deposit) or a financial instrument (pay slips / pay orders / D.Ds / T.Ts / M.Ts, or any other financial instrument), not being recorded in the name of a minor or a government or a court of law, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of ten years as reckoned under Subsection(1) of Section 31 of BCO 1962, will be classified as unclaimed deposit/instrument

ii) REPORTING OF UNCLAIMED DEPOSITS/ INSTRUMENTS

All Banks/DFIs will submit branch wise list of unclaimed deposits / instruments separately for Pak Rupee (PKR) and in foreign currency (FCY) on Form-XI (enclosed as Annexure-A) through soft copy (in MS-Excel format) as well as authenticated hard copy of the same within thirty days after the close of each calendar year.

iii) SURRENDER OF UNCLAIMED DEPOSIT

a) The amount of unclaimed PKR & FCY deposits/instruments will be surrendered during the first week of April of each calendar year along with a list of unclaimed deposits/instruments, which have been refunded by Banks/DFIs during the period i.e. from the date of reporting the unclaimed PKR & FCY deposits/instruments at the end of each calendar year and date of surrender of the outstanding amount thereof to SBP.

b) The Banks/DFIs will surrender the outstanding amount of the unclaimed FCY deposits / instruments through SBP nostro accounts maintained in any one of the six currencies namely US dollar-USD, Japan Yen-JPY, Euro-Eur, British Pound-GBP, Swiss Franc-CHF, United Arab Emirates Darham-AED.

c) Unclaimed FCY deposit/instrument maintained in other than the aforesaid six currencies will be surrendered by converting the same into US dollar.

d) In case of Frozen FCY deposits/instruments of 1998, as and when become unclaimed, the Banks/DFIs will surrender the equivalent PKR to SBP

iv) NOTICE TO THE HOLDER OF UNCLAIMED DEPOSIT/INSTRUMENT

a) All Banks/DFIs upon completion of a ten-year time period as stipulated in relevant provision of BCO, shall serve a three-month notice in writing by registered post acknowledgement due to the creditor or the beneficiary of the deposit/instrument on his/her address last made known to the banking company.

b) Banks/DFIs are required to maintain complete record of letter/envelope etc. posted at the address of the unclaimed deposit/instrument holder, at their respective branches as per the format enclosed (Annexure-B).

c) Apart from giving a notice to the respective account holder at the end of ten year period, Banks/DFIs should also make cognizable effort from time to time to contact such account holders where there has been no activity in the respective accounts for a considerable period.

d) Banks/DFIs would be required to intimate in-writing to the government departments/agencies, court of law and minors (after acquiring the age of maturity) for settlement of their deposits/instruments lying with them for more than ten years.

v) PRESERVATION OF DOCUMENTS

Banks/DFIs shall continue to preserve all signature cards and documents indicating “signing authorities” given to them and other documents relating to the debt or instrument until it is informed by SBP in writing that they need not be preserved any longer.

vi) INFORMATION IN ACCOUNT OPENING FORM (AOF)

Banks/DFIs shall insert a clause in “bold words” in their respective AOF indicating that a deposit/instrument, which remains inoperative for a period of ten years, shall become unclaimed and will be surrendered to SBP as per the provisions of BCO. The existing account holders should also be informed about the same through a letter to be sent with the bi-annual statement of account or any other methods as deem feasible by the Bank/DFI.

vii) PROCEDURE FOR REFUND OF UNCLAIMED DEPOSIT SURRENDERED TO SBP

Banks/DFIs while forwarding any claim for refund will provide legible and duly attested, copies of the following documents

i. Original application for refund along with verification of attested signature/thumb impression of the claimant by the concerned branch manager with name and stamp. Claimant’s address and contact number (if any) should be ensured in the application.
ii. Copy of three months notice served by the Banks/DFIs on the holder of the unclaimed deposit/instrument.
iii. Attested copy of Computerized National Identity Card (CNIC) of the claimant.
iv. Certificate as per enclosed format (Annexure-C).
v. Copy of relevant page of record furnished to SBP.
vi. Succession certificate in case of deceased customer.

3. The above instructions supersede following circulars / circular letters:

• BRD Circular No.21 dated 23rd December, 1992
• Circular Letter No. BPRD (RU-52)377/x/327/98 dated 6th January, 1998
• Circular Letter No. BPD(PU-08/317-(policy)/8675/2002 dated 24th Dec, 2002
• Circular Letter No. BPD (PU-08)/317(policy)/15942/2003 dated 18th Dec,2003
• Circular Letter No.BPD (PU-08)/317(Policy)/16079/2003 dated 22nd Dec, 2003
• BPD Circular No.26 dated 11th October, 2005

Please acknowledge receipt.

Encls:Annexure A,
          Annexure B,
          Annexure C.

 


Yours truly,

Sd/-

(SYED IRFAN ALI)
Senior Joint Director

       
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