Aggrieved with banking services, customers have filed the highest number of complaints against Habib Bank Limited (HBL) – the largest bank in Pakistan – during the year 2022.
According to annual report for the year 2022, Banking Mohtasib (Ombudsman) Pakistan has received the highest number of complaints against the HBL.
About 4,701 complaints against HBL out of which 2,958 complaints were filed at the office of Banking Mohtasib Pakistan. Remaining 1,743 complaints at the Prime Minister’s portal.
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United Bank Limited (UBL) is the second to make customers unhappy during the year. About 4,646 complaints, was filed against UBL. Out of which about 2,597 complaints at the BMP and remaining 2,049 complaints filed at the Prime Minister’s portal.
The office of the BMP revealed that during calendar year, a total 30,493 complaints were received while 4,772 complaints were carried forward. Thus, making total complaints in hand were 35,265, out of which 21,822 complaints were resolved amicably through reconciliation while after formal hearings, findings/ orders were passed in 734 cases.
Around 5,102 complaints were found incomplete and required further information or were rejected being frivolous and for want of jurisdiction as the same either pertained to insurance or related to microfinance banks/fund managers or administrative issues of banks.
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The Prime Minister’s Portal (Government-owned system based on Mobile Application) was introduced in the year 2019 and complaints related to the banking sector were received at BMP Secretariat. During the year under review, 12,979 complaints were received through the Prime Minister’s Portal.
Increase of 31 per cent was observed in receipt of public complaints lodged directly with BMP, whereas, there was 21 per cent decrease in the complaints received from Prime Minister’s Portal.
It explains the decrease of 8 per cent in total number of complaints received during the year. Efforts were made to dispose of complaints expeditiously. However, depending on the complexity, some complaints take longer time to resolve.
Provincial-wise, the banking customers in the Punjab filed the highest number 22,227 complaints during the year 2022. It was followed by Sindh 8,652, Khyber Pakhtunkhwa 3,064 and Balochsitan 571.
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The role of institution of Banking Mohtasib in the financial industry is to resolve disputes through a process, which is largely conciliatory, and where such mediation is unsuccessful, to adjudicate and pass a speaking order to decide the dispute.
In relation to all commercial banks operating in Pakistan, the Banking Mohtasib has been empowered to entertain complaints of the following nature:
Failure to act in accordance with banking laws and regulations, including policy directives or guidelines issued by the State Bank of Pakistan from time to time.
Delays or fraud in relation to the payment or collection of cheques, drafts, other banking instruments or transfer of funds.
Fraudulent or unauthorized withdrawals or debit entries in accounts.
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Complaints from exporters or importers relating to banking services and obligations, including letters of credit.
Complaints from holders of foreign currency accounts whether maintained by residents or non-residents.
Complaints relating to remittances to or from abroad.
Complaints pertaining to markup or interest rates on the ground of a violation of an agreement or directives of State Bank of Pakistan.
Complaints relating to payment of utility bills.
In relation to banks in the public sector, the institution of Banking Mohtasib is authorized to entertain complaints against such banks on the following additional grounds as well: Corruption or mala fide practices by the officers of banks; Gross dereliction of duty in dealing with customers; and inordinate delays in taking decisions.
However, the institution of Banking Mohtasib cannot accept complaints relating to banks’ policy matters. For example, the following matters lie outside the jurisdiction of the Banking Mohtasib:
Matters relating to grant of loans, advances or finances to customers.
Complaints against banks’ loan and mark-up policies, risk policies, or product and service pricing as included in their schedule of charges and/ or any other policy matter. Grievances of banks’ employee or ex-employee pertaining to terms and conditions of their service also fall outside the jurisdiction of the Banking Mohtasib.
