Friday, April 11, 2008, Rabi-ul-Sani 4,1429    

Ombudsman dissatisfied with banks’ attitude

Nasir Mahmood

Karachi—The Banking Mohtasib (Ombudsman) is dissatisfied with the attitude of local as well as foreign banks operating in Pakistan towards their customers. He said that all banks were not thoroughly screening loan or credit card applicants to determine their repayment capacity and credit worthiness. The failure to do so had resulted in subsequent delinquencies. He urged banks to exercise prudence when granting credit facilities.

The Annual Report 2007 made public today by him includes case studies which show the apathetic attitude of banks in their dealings with customers. Banking Mohtasib said that judging from the types of complaints received, service standards within most banks were indifferent. A service oriented mind-set appears to be lacking across the industry, he stressed the need for a proactive complaints resolution process within banks.

Based on investigations and complaints, the Banking Mohtasib has made recommendations to SBP on systemic issues and non-compliance by banks with SBP’s directives. Key areas on which recommendations have been made are:Lockers vandalism, Credit Card fraud, and Debt collection by banks. The Banking Mohtasib said that his Unit had resolved numerous complaints, particularly from illiterate individuals of meager means, who had placed their trust and life savings in the banking system only to discover that financial security they had sought was misconceived as was their vision of a secure financial future because of deceitful actions by a handful of dishonorable bank staff. He added that it has been exceedingly gratifying and fulfilling that the Banking Mohtasib establishment could assist these persons in the resolution of their grievances.

The Banking Mohtasib presented the 2007 Annual Report at a ceremony at a local hotel. Banking Mohtasib function opened to the public on May 2, 2005 to serve as an independent, impartial and cost free service for redressal of public grievances against scheduled banks. In order to speed up the complaints resolution process certain amendments have been made in the Banking Companies Ordinance to improve the process.