UBL Faces Criticism Over Withholding Salary Funds on Credit Days

United Bank Limited (UBL) is facing growing public criticism after multiple reports surfaced alleging that the bank has been withholding customer salary funds on credit days for the past two months, delaying access to money for thousands of account holders.

According to a LinkedIn post by Raza Mahdi, Head of Social Media at GEO Television Network, the issue has caused widespread frustration among salaried customers, many of whom rely on timely salary deposits to meet financial obligations such as credit card payments, EMIs, and utility bills.

Mahdi described the situation as “a serious breach of trust,” saying that customers have been unfairly deprived of access to their own funds during critical payment periods. He noted that the delays have forced people to incur late fees and penalties that are “not their fault.”

“If a bank cannot manage its operations transparently and on time, it must take full responsibility for the financial losses its customers face,” Mahdi said, urging UBL to take corrective measures immediately.

He further called for regulatory intervention, stating that the State Bank of Pakistan and other financial authorities must launch an investigation into what he described as an ongoing “malpractice.” Mahdi insisted that all penalties and late fees caused by the delayed salary credits should be compensated by the bank.

“People trust banks to safeguard their hard-earned money, not to manipulate the system for profit,” he emphasized.

As of now, UBL has not issued an official response to the allegations. The bank’s digital platforms have, however, received a surge of customer complaints in recent weeks regarding delayed salary postings and restricted withdrawals.

If confirmed, the issue could raise concerns about operational transparency and liquidity management within the banking sector, especially at a time when public confidence in financial institutions remains fragile amid inflationary pressures and rising service fees.

Observers note that such delays, even if temporary, can have ripple effects across the financial ecosystem, potentially affecting employers’ payroll timelines and employee morale. The State Bank of Pakistan has previously warned commercial banks against withholding or delaying disbursements without clear justification.

For now, affected customers continue to demand answers from one of Pakistan’s leading financial institutions.