KARACHI – Allied Bank, one of noted commercial banks in Pakistan, continues to remain in news for all the wrong reasons, and lately, ABL customers approached authorities as some fraudulent transactions were carried out successively through their accounts.
Allied Bank amassed huge customers who trusted the bank but weaknesses in the ABL banking system deprived people of their money.
Following the customer outcry, President Dr Arif Alvi ordered Allied Bank and another private bank to return a collective sum of Rs4.1 million to four customers, who were swindled out of their hard-earned money by scammers.
President Alvi issued remarks while turning down representations filed by Allied Bank Ltd (ABL) against the orders of the Banking Mohtasib directing these banks to refund the lost amount to victims of bank fraud.
President Dr. Arif Alvi has directed two private banks to return a collective sum of Rs 4.1 million to four customers, who were swindled out of their money by fraudsters. The banks had activated the Electronic Funds Transfer (EFT) without obtaining the consent of the customers pic.twitter.com/kiRWKKOG0j
— The President of Pakistan (@PresOfPakistan) August 23, 2023
It was learnt that Allied Bank activated Electronic Funds Transfer (EFT) without getting the consent of the customers and was found negligent in complying with the central bank’s regulations about online fund transfer facilities, disclosing the terms of fund transfer in a clear and simple language to customers, and assigning limits to fund transfer.
After a thorough review, the President said the loss of funds occurred as Allied Bank failed to EFT operational without the account holders’ request, therefore, ABL committed maladministration and was liable to make good the loss of the customers.
Some four customers – Sumera Allahditta, Afzal Abbas Kazmi, Farah Muhammad Khan, and Dr. Kanwar Shakeel Ahmed – lost Rs1,5million, Rs0.98 million, Rs 0.96 million, and Rs 0.59 million respectively as these amounts were transferred from their bank accounts without their consent.
As the matter made headlines, people also took to social media to share ordeal, and pointed the irregularities in system of Allied Bank.
Here’s how people reacted
Hello @ABLpk, these numbers are calling me and saying that they are from allied bank and your account is banned from @StateBank_Pak… So they need some verifications from me… Kindly check this… @ABLpk pic.twitter.com/fer45z6WOa
— Haider Rasool (@HaiderRasool18) August 15, 2023
@AlliedBank320 @ablfunds @StateBank_Pak
This is Allied Bank administration who do not protect their customers in case of any fraudulent payment. pic.twitter.com/of1YhpcouZ— Zubair Shabbir (@zubairshabbir) August 25, 2023
Allied Bank ABL has not responded to the queries of Pakistan Observer til the filing of this report.
