KARACHI:

The Pak Banker - - FRONT PAGE -

State Bank of Pak­istan (SBP) has is­sued a set of in­struc­tions to com­mer­cial banks to block Non-Res­i­dent Ac­counts in their branches while in­vest­ment the money within in ap­proved se­cu­ri­ties.

Bal­ances held in blocked ac­counts may be in­vested in "ap­proved se­cu­ri­ties" ex­pressed to be payable in Ru­pees or in fixed de­posit with the bank in which the ac­count is held sub­ject to the prior ap­proval of the State Bank. Shares or se­cu­ri­ties in which in­vest­ment is per­mit­ted by the State Bank must be bought through the bank with whom the blocked ac­count is kept and reg­is­tered in the name of the ac­count holder, the ad­dress be­ing his per­ma­nent res­i­den­tial ad­dress out­side Pak­istan.

Al­ter­na­tively, se­cu­ri­ties so pur­chased may be reg­is­tered in the names of the banks keep­ing the blocked ac­counts or their nom­i­nees in Pak­istan. The se­cu­ri­ties should not be held in bearer form and should not be sold or trans­ferred with­out the per­mis­sion of the State Bank. A blocked ac­count means an ac­count opened as a blocked ac­count at any branch or of­fice in Pak­istan of a bank au­tho­rized in this be­half by the State Bank or an ac­count blocked by the or­der of the State Bank.

The cen­tral bank asked com­mer­cial banks deal­ing in for­eign ex­change are per­mit­ted to main­tain blocked ac­counts. A blocked ac­count may not be opened in the name of a res­i­dent of Pak­istan un­less it is held jointly with a non-res­i­dent. No blocked ac­count may be opened by an Au­tho­rized Dealer or an ex­ist­ing 'free' ac­count blocked ex­cept un­der di­rec­tions from the State Bank. Sub-sec­tion (1) (b) of Sec­tion 6 of the Act pro­vides that where the State Bank has di­rected that any pay­ment due to a non-res­i­dent may be made to a blocked ac­count in his name with a bank in Pak­istan, the cred­it­ing of the sum to the blocked ac­count shall, to the ex­tent of the sum cred­ited, be a good dis­charge to the per­son mak­ing the pay­ment.

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