Banks will not allow non-filers to withdraw cash beyond a specified limit, according to amendments made to the Finance Bill 2025-26 from July 1.

The new restriction applies to individuals who are not listed as active taxpayers. Banks will be prohibited from processing cash withdrawals above a certain threshold from their accounts.

The Finance Bill 2025-26 section 114C, titled “Restriction on economic transactions by certain persons,” has been revised.

In the original version of the bill, banks were directed not to open or maintain current, savings, or investor portfolio securities accounts for individuals notified by the Federal Board of Revenue (FBR), with exceptions made only for Asaan Accounts and Pensioner Accounts.

The original bill also proposed a limit on cash withdrawals, stating that banks must not allow withdrawals exceeding a certain amount, as determined by the FBR.

However, the amended version introduces a more specific provision.

“A banking company shall not allow cash withdrawal from any of the bank accounts of any person, exceeding the threshold as specified in the Fifteenth Schedule,” it stated.

The exact withdrawal limit will be outlined in the Fifteenth Schedule of the Finance Bill 2025-2026.

The government has also made a significant amendment concerning pension income. Individuals receiving annuity or pension income, categorized under “income from other sources,” will now be taxed at the rate specified in the proviso to clause (2) of the relevant tax division.