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Tag: Banking Mohtasib Pakistan

  • SBP asked to restore biometric verification for online banking services

    SBP asked to restore biometric verification for online banking services

    KARACHI: The Banking Mohtasib has asked the State Bank of Pakistan (SBP) to restore the verification through biometric system for activation/re-activation of online banking services.

    The non-availability of biometric verification system is creating unsafe environment for banking customers, according to annual report for the year 2020 issued by the office of Banking Mohtasib Pakistan on Thursday.

    The Mohtasib said that the SBP vide its PSD Circular No. 9 of 2018, (dated November 28, 2018), made it mandatory for banks to have biometric verification at any branch of their banks for activation/ re-activation of online banking services, including internet/mobile banking for their customers.

    The above instructions were suspended vide PSD Circular No. 2 of 2020 (dated March 18, 2020) which inter-alia was one of the measures to control the spread of pandemic of COVID-19.

    However, it has been observed from complaints received in Banking Mohtasib Pakistan office that the fraudsters are taking advantage of suspension of bio-metric verification conditionality as since suspension the number of complaints relating to IBFT/internet banking transactions are increasing day by day.

    “The SBP is, therefore, recommended to lift the suspension, if considered appropriate, or some alternate for bio-metric be introduced to reduce/avoid miseries of innocent account holders.”

    In other recommendations to SBP, the Banking Mohtasib office pointed out systemic deficiencies and control weaknesses within banks.

    Such weaknesses are brought to the attention of banks’ senior management. For issues of a serious nature, a report is submitted to the State Bank of Pakistan for action as it may consider appropriate.

    Some of the issues which have been brought to the notice of State Bank of Pakistan for appropriate regulatory intervention are as under:

    • It has been observed that instructions issued by SBP from time to time vide their different circulars are not followed by banks in letter and spirit. One of the reasons may be the inflow of variety of circulars and change in instructions or various modifications on the same subject which cannot be grasped / adopted by banks due to frequent changes in the instructions and influx of certain information from time to time.

    It is, therefore, recommended that a Master Circular on each subject may be issued so that all the Instructions / modifications may be centralized and incorporated in a Master Circular in order to facilitate banks as well as all the stake holders.

    • A comprehensive consumer complaints data is available, but at present it is dispersed among individual banks, SBP and Banking Mohtasib office. SBP and Banking Mohtasib Pakistan office have published some statistics in this regard, but there is a need for a consolidated data base of all consumer complaints which would facilitate the regulator as well as banks to better identify and address recurring problems and areas of weak controls. It is recommended that a data on all consumer complaints be made for effective analysis.

    • Section 82 B (4) (b) of Part IV A of the Banking Companies Ordinance, 1962, confers the power and responsibility to the Banking Mohtasib to facilitate an amicable resolution of complaints after hearings. However, this is rendered impossible for the reason that the managers or officers of banks appearing at the hearing have no such authority from their institutions to negotiate and arrive at an amicable settlement and they tend to refer the simple issues to their Head Offices which not only delays the process of speedy justice, but also leads to a series of further communications.

    Further, Banking Mohtasib Pakistan has noticed many instances where banks agree to make payment to complainants, but the process of their internal approval is largely found to be time consuming which defeats the very basic purpose of providing speedy justice.

    The banks are thus required to make their complaint resolution mechanism compatible to relevant law to ensure prompt payment to the customer in case of complaints attaining finality under law or resolved by process of amicable settlement.

    • Reducing of notice period of complaint from customers from 45 to 15 days as it appears to be a long period which deprives the Complainant from early resolution of their complaint.

    • As per Section 82 D (1) of Banking Companies Ordinance, 1962, the Complainant is required to file his Complaint on Oath. However, It is suggested that amendment may be made in the relevant section and Complainant may be allowed to submit an undertaking instead of an attestation by the Oath Commissioner.

  • Mohtasib provides relief of Rs600 million in complaints against banks

    Mohtasib provides relief of Rs600 million in complaints against banks

    KARACHI: The Banking Mohtasib (Ombudsman) has provided a monetary relief of around Rs600 million in resolving over 16,000 complaints against banks during the year 2020.

    The Banking Mohtasib Pakistan, Muhammad Kamran Shehzad unveiled the annual report 2020 at a press conference on Thursday.

    According to the annual report of the office of Banking Mohtasib, during the period around 22,750 new complaints were received while 2,778 complaints were carried forward.

    Thus, making total complaints in hand were 25,528, out of which 16,123 complaints were resolved amicably through reconciliation while after formal hearings, findings/ orders were passed in 166 cases.

    Around 5,071 complaints were found incomplete and require further information or rejected being frivolous or for want of jurisdiction as the same either pertained to insurance matter or related to microfinance banks or fund managers or related to administrative matter of banks.

    Prime Minister’s Portal (Government-owned system based on Mobile Application) was introduced in the year 2019 and complaints related to Banking Sector were referred to BMP Secretariat. During the year under review, the office of Banking Mohtasib received 12,046 complaints through Prime Minister’s Portal.

    The report said that an increase of 56% was observed in the receipt of complaints during the year as compared to last year.

    Efforts were made to dispose of the complaints expeditiously. However, depending on the complexity, some complaints take longer time to resolve.

    People in Punjab province were seen more irritating with the services of the banking system. The Banking Mohtasib received the highest number of complaints i.e. 14,924 against banks located in the province.

    It followed by Sindh 4,027, Khyber Pakhtunkhwa 2,070, Balochistan 317, Azad Kashmir 228, Gilgit Baltistan 68 and overseas 1,114.

    During the year, the highest number of complaints lodged against Habib Bank Limited. A sum of 5,317 complaints were filed against the bank during the year 2020; out of which the Mohtasib secretariat received 2,654 complaints and the Prime Minister Portal received 2,663 complaints.

    The second highest number of complaints was lodged against United Bank Limited. Around 3,098 complaints were lodged against the bank during the year; out of which 1,562 complaints were filed at Banking Mohtasib and 1,536 submitted at the Prime Minister Portal.

  • Ombudsman asked to protect banking consumers from scams, financial losses

    Ombudsman asked to protect banking consumers from scams, financial losses

    President of Pakistan, Dr. Arif Alvi, has called on the Banking Mohtasib [Ombudsman] to enhance efforts in protecting banking consumers from scams and financial losses through effective preventive measures.

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  • Mohtasib receives 11,174 complaints against banks during six months

    Mohtasib receives 11,174 complaints against banks during six months

    KARACHI: Around 11,174 complaints have been filed against commercial banks during first half of current calendar year, said a report issued by Banking Mohtasib (Ombudsman) Pakistan.

    The office of banking ombudsman in its half yearly report (January – June 2020) said that due to more public awareness about this institution as an alternate dispute resolution forum, in the last three years there has been seen an increase of 62 percent in public complaints.

    “Although during the Global Pandemic of Covid-19 despite of the fact that our office was not working at full strength, we have received 11,174 complaints during first six months of the year 2020 (i.e. from 01.01.2020 to 30.06.2020).”

    These also include the complaints received at the Prime Minister Portal relating to banking issues. The increase in number of complaints represents the confidence of general public in the working of this institution and the relief being obtained speedily and without any cost.

    The recent development in the technological field such as the digital banking, internet banking, mobile banking and ATMs, in the development of the economic activity in the country is enormous.

    Unfortunately, a large segment of our society is not financially literate besides, low level of education particularly those living in the rural areas do not have much knowledge about the products introduced by the banks.

    Certain fraudsters taking advantage of the innocent people misguide them for their poor knowledge of the latest banking techniques.

    All bank are continuously making public awareness campaigns, to discourage their evil designs and guiding the customers not to disclose details of their personal and financial credentials to any unknown person but during past two to three years, a large number of complaints of unauthorized fund transfer were received.

    Recommendations in this regard to SBP have been made time to time to protect the depositors hard earned savings.

    Related Stories

    Complaints against banks surge by 51 percent: Banking Mohtasib
    Mohtasib receives 14,587 complaints against banks
    Banking fraud: Rs7.6 million withdrawn on un-signed cheque
  • Complaints against banks surge by 51 percent: Banking Mohtasib

    Complaints against banks surge by 51 percent: Banking Mohtasib

    KARACHI: The number of complaints has been increased by around 51 percent during first nine months of current calendar year against banks including fraud, forgeries and other irregularities, the office of Banking Mohtasib (Ombudsman) said on Monday.

    Inspite of COVID-19, major increase has been observed in the number of complaints lodged with the Banking Mohtasib Pakistan against the alleged frauds, forgeries and other irregularities during the first nine months of the current calendar year, 2020 as compared to the same period of last year, 2019.

    Almost 19028 complaints were received by the Banking Mohtasib Secretariat from January 01 to September 30, 2020 as against 12624 complaints received in the same period of last year depicting an increase of 50.7%. These also include about 11092 complaints received on the Prime Minister’s Portal relating to banking issues. The increase in number of complaints represents the confidence of general public in the working of the institution of Banking Mohtasib. The Banking Mohtasib Secretaiat disposed of 13488 complaints from January 01, 2020 to September 30, 2020.

    The role of Banking Mohtasib is to resolve the grievances of the banking customers amicably, speedily and free of cost. It also protects the interest of the depositors and ensures that banks not only comply with the prescribed rules and regulations of the State bank of Pakistan, but also apply them in fair and judicious manner.

    The Banking Mohtasib Pakistan, Muhammad Kamran Shehzad has urged the general public to strictly follow the instructions being given by the banks in their public awareness campaigns of not disclosing their personal and financial credentials to any person. In this way they will be able to protect themselves from any fraud, forgeries etc.

  • Credit card fraud by bank official unearthed

    Credit card fraud by bank official unearthed

    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.

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  • Mohtasib receives 14,587 complaints against banks

    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.BankTotal
    01Albaraka Bank (Pakistan) Limited56
    02Allied Bank Limited586
    03Askari Bank Limited227
    04Bank Al Habib Limited118
    05Bank Alfalah Limited764
    06Bank Islami Pakistan Limited110
    07Citibank3
    08Dubai Islamic Bank Pakistan Limited101
    09Faysal Bank Limited477
    10First Women Bank Limited12
    11Habib Bank Limited2511
    12Habib Metropolitan Bank Limited68
    13JS Bank Limited262
    14MCB Bank Limited880
    15Meezan Bank Limited319
    16National Bank of Pakistan825
    17Samba Bank Limited8
    18Silk Bank Limited586
    19Sindh Bank32
    20SME Bank Limited5
    21Soneri Bank Limited75
    22Standard Chartered Bank (Pakistan) Limited267
    23Summit Bank Limited60
    24The Bank of Khyber20
    25The Bank of Punjab267
    26The Punjab Provincial Cooperative Bank Limited24
    27United Bank Limited1587
    28Zarai Taraqiati Bank Limited94
    29Institutions other than banks313
    30Complaints received through Prime Minister’s Portal3930

    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.

  • Banking fraud: Rs7.6 million withdrawn on un-signed cheque

    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.

  • Banks should aware customers about online frauds: Ombudsman

    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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