what is the procedure for opening Block account for Chancenkarte in Pakistan? what procedure defined by state bank of Pakistan?

To open a blocked account for a Chancenkarte in Pakistan, you need to follow specific procedures defined by the State Bank of Pakistan. A blocked account is typically required for non-residents to ensure that funds are not directly remitted or misused contrary to the Foreign Exchange Regulation Act.

## **Procedure for Opening a Blocked Account**

1. **Eligibility**:

   - A blocked account can only be opened in the name of a non-resident. If a resident wishes to open such an account, it must be done jointly with a non-resident.

2. **Authorized Banks**:

   - Only banks authorized by the State Bank of Pakistan can maintain blocked accounts. This includes all Authorized Dealers in foreign exchange.

3. **Application Process**:

   - To initiate the process, you must submit **Form A-7** to the State Bank for prior approval. This form should include the name of the payee and clearly state that it is for a blocked account.

4. **Payment Instructions**:

   - Payments into the blocked account must be made through:

     - A banker’s payment order marked "payable to blocked account of [name] only."

     - A crossed cheque or warrant drawn in favor of the beneficiary, also marked as "Payable to blocked account of [name] only."

5. **Endorsement and Approval**:

   - The collecting bank must endorse cheques or drafts with "received for the credit of blocked account at [Bank and Branch]." 

6. **Restrictions on Operations**:

   - No payments into or withdrawals from the blocked accounts can occur without prior approval from the State Bank, unless special instructions have been issued regarding individual accounts.

7. **Investment Options**:

   - Balances in blocked accounts may be invested in approved securities or fixed deposits, but this also requires prior approval from the State Bank.

8. **Account Management**:

   - The funds in a blocked account cannot be used for any purpose other than what is specified by the State Bank until further instructions are received.

By adhering to these guidelines, individuals can successfully open and manage a blocked account in Pakistan for their Chancenkarte needs[1][2].

Citations:

[1] Blocked Accounts - State Bank of Pakistan https://www.sbp.org.pk/fe_manual/chapters/chapter9.htm

[2] [PDF] Chapter-9.pdf - State Bank of Pakistan https://www.sbp.org.pk/fe_manual/draft/Chapter-9.pdf