SBP promises action against banks

Small traders and businessmen of Hyderabad have denounced the "unjustified and indefinite holding of funds in business accounts", saying it causes financial difficulties and cash flow problems.

In that regard, Hyderabad Chamber of Small Traders & Small Industry Vice President Shan Sehgal met State Bank Hyderabad Assistant Manager Adil Zahoor and apprised them of the difficulties being faced by traders and industrialists, according to a statement issued by the chamber on Saturday.

Sehgal emphasised that holding legitimate business funds without written justification, regulatory reference and a clear timeline "not only disrupts business activities but also causes severe financial stress, cash flow problems and loss of confidence among the business community".

SBP Assistant Manager Adil Zahoor assured the chamber vice president that such complaints would be taken very seriously and strict action, including penalties, would be imposed if any commercial bank was found guilty.

He said that the State Bank of Pakistan (SBP) had already issued directives to all commercial banks to organise special awareness sessions at the secretariat of the Hyderabad Chamber of Small Traders & Small Industry on Islamic banking, anti-money laundering/countering terrorism financing (AML/CTF) regulations and other important banking matters to better educate traders about rules and procedures.

Sehgal urged the State Bank to further expedite the resolution of transaction-related issues faced by traders and industrialists and protect the legitimate business funds from unnecessary delays. He expressed hope that the assurances given by the State Bank would lead to the early resolution of traders' issues, restoration of business confidence and promotion of overall economic activity.