Dam funds: SBP issues warning

The State Bank of Pakistan (SBP) has warned that any negligence for collection of Dam funds may face penal action against banks and may also tantamount to contempt of court.

The SBP again has asked all commercial banks and Microfinance Banks to ensure the arrangements for collection of donations and contributions to the Diamer-Bhasha and Mohmand Dam Fund at every bank branch.

According to the SBP, in a recent hearing of the Supreme Court of Pakistan and Prime Minister of Pakistan (SCP and PM) Diamer-Bhasha and Mohmand Dam Fund case, the Honorable Supreme Court of Pakistan has observed that there are complaints that banks are not accepting donations from people contributing to the Dam Fund, and are also not actively facilitating donors in remittance of the funds stuck abroad.

Therefore, in order to address the issues being faced by donors, the SBP has advised the all commercial and microfinance banks to ensure that the arrangements made for collection of donations and contributions to the Dam Fund shall remain in place at every bank branch on an ongoing basis; requiring all concerned to provide necessary support and facilitation to donors.

The banks are further directed to ask their overseas branches to facilitate the donors in depositing and remittance of donations to the Fund in accordance with the legal and regulatory framework of concerned jurisdiction.

The banks have been directed to display SBP's helpline number and email address on their websites and branch notice boards for lodging of complaints by donors if they face any difficulty in depositing and contributing to the Fund.

The SBP has reminded that the apex Court of the country is monitoring progress in the matter of donations to the Fund.

Any laxity by banks or their staff at branches will attract penal action and may also tantamount to contempt of court. Banks are therefore, advised to ensure meticulous compliance of above instructions and extend full cooperation to donors in deposit of their donations/contributions.