ISLAMABAD: The Banking Mohtasib (Ombudsman) has provided a relief to a person, who lost money through credit card transactions that were made fraudulently by a bank official.
(more…)Tag: Banking Mohtasib Pakistan
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Mohtasib receives 14,587 complaints against banks
ISLAMABAD: The Banking Mohtasib (Ombudsman) Pakistan has received 14,587 complaints against banks for the year ended December 31, 2019.
The annual report of Banking Mohtasib Pakistan revealed the number of complaints against each bank in the following table:
S. No. Bank Total 01 Albaraka Bank (Pakistan) Limited 56 02 Allied Bank Limited 586 03 Askari Bank Limited 227 04 Bank Al Habib Limited 118 05 Bank Alfalah Limited 764 06 Bank Islami Pakistan Limited 110 07 Citibank 3 08 Dubai Islamic Bank Pakistan Limited 101 09 Faysal Bank Limited 477 10 First Women Bank Limited 12 11 Habib Bank Limited 2511 12 Habib Metropolitan Bank Limited 68 13 JS Bank Limited 262 14 MCB Bank Limited 880 15 Meezan Bank Limited 319 16 National Bank of Pakistan 825 17 Samba Bank Limited 8 18 Silk Bank Limited 586 19 Sindh Bank 32 20 SME Bank Limited 5 21 Soneri Bank Limited 75 22 Standard Chartered Bank (Pakistan) Limited 267 23 Summit Bank Limited 60 24 The Bank of Khyber 20 25 The Bank of Punjab 267 26 The Punjab Provincial Cooperative Bank Limited 24 27 United Bank Limited 1587 28 Zarai Taraqiati Bank Limited 94 29 Institutions other than banks 313 30 Complaints received through Prime Minister’s Portal 3930 Relief claimed amounting to Rs 260,985,799/- has been granted to the complainants.
In the year under review, a total number of 1422 formal complaints were resolved against which 160 Representations were made to the President, Islamic Republic of Pakistan.
During the year ending December 31, 2019, one Review Petition was filed and the same was allowed.
The highest number of complaints received from the province of Punjab i.e. 10,074 followed by Sindh 3,094, Khyber Pukhtunkhwa 1,055, Balochistan 131, Azad Kashmir 212, Gilgit Baltistan 21.
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Banking fraud: Rs7.6 million withdrawn on un-signed cheque
ISLAMABAD: A bank account holder is fortunate to get back an amount of Rs7.6 million on the intervention of Banking Mohtasib (Ombudsman) Pakistan. The amount was fraudulently withdrawn from the account on a foraged cheque and the branch manager was found involved in the fraud.
A case related to cash withdrawn on forged cheque is reported in the fifteenth Annual Report of Banking Mohtasib Pakistan for the year ending 31 December 2019.
The report said that the complainant was maintaining a joint account with his wife with operational instructions “Either or Survivor” since December 18, 2012.
“They had neither applied for a cheque book nor any cheque book was ever delivered to them, yet an amount of Rs 7.600 (M) was withdrawn from their account without their consent and knowledge.
“The Complainant demanded refund, but the Bank paid no heed to his request.
“Complainant, therefore, lodged a complaint with the Banking Mohtasib.”
The Bank was asked to submit detailed investigation report along with copies of AOF, SS Card, KYC, disputed cheque No. 105805316 for Rs 7,600,000/- dated 21.04.2017 (both sides), statement of account and cheque book issuance request and delivery proof thereof.
The Bank provided the requisite documents. On examination of the provided documents it was found that: According to the Complainant, they had never applied for issuance of any cheque book at any time.
“From the Cheque book requisition request it was observed that the signature thereon was clearly different from the signature of Complainant recorded on his AOF and S. S. Card. Clearly, therefore, the cheque book was issued against a fake signature,” the report said.
On perusal of cheque dated 21-04-2017 for Rs 7.600 (M), it was observed that it was not signed at all.
As per Complainant, the cheque was not mandated. It was obvious that the Bank cleared the unsigned cheque which was a nullity in law.
Further, neither any Call-back Confirmation was done nor could the Bank explain in its defence as to how payment was made on a cheque which was void under law and not a cheque at all.
The payment of huge sum of Rs 7.600 (M) in cash was also surprising.
Due to the seriousness of the lapses on the part of the Bank, the case was set for a formal hearing on May 2, 2019 at our Regional Office, Rawalpindi.
The Bank’s representative produced related Cheque Book Requisition slip (CBR) along with paid cheque.
On examination of CBR it was observed that a cheque book of five leaves, bearing number 105805316 to 105805320, was issued on April 21, 2017.
The signature on CBR did not match with the signature of the Complainant available in the Bank’s record i.e. AOF & S. S. Card, whereas the Cheque number 105805316 dated 21-04-2017 against which payment of Rs 7,600,000/- was made found to be un- signed.
On further scrutiny it was observed that cash recipient’s signatures were also not available on the back of the cheque as well as denominational details were also not furnished on the back of the cheque as against general banking practice.
Moreover, the Bank also failed to provide any record of Call-back Confirmation (CBC) to the Account-holder as per its own SOP as the cheque was of a very large sum and payment had to be made in cash.
The Bank officials submitted that the Ex-Branch Manager, who was involved in this scam, has absconded and the Bank has lodged a report with the FIA after its initial enquiry.
It is a well settled principle of law that the employer is vicariously liable for any fraud or other wrong doing of his employee committed in the course of his employment, whether for the benefit of the employer or not.
In view of the above findings and as admitted position, it was concluded that the Complainant is entitled for his lump sum claim of Rs 7,600,000/- from the Bank.
Therefore, the Bank was advised to forthwith refund the sum of Rs 7,600,000/- to the Complainant.
The Bank subsequently, filed representation with the President Islamic Republic of Pakistan against the Order passed by the Banking Mohtasib under Section 14 of Federal Ombudsmen Institutions Reforms Act – 2013 (FOIRA) where the Order of Banking Mohtasib was up-held.
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Banks should aware customers about online frauds: Ombudsman
ISLAMABAD: The Banking Mohtasib (Ombudsman) of Pakistan has recommended that at the time of activation of online services Banks/ Microfinance Banks relevant staff shall educate customers about various types of online banking frauds as well as the corresponding preventive measures.
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