'Banking Mohtasib taking steps to provide relief to complainants'

Pakistan Bank Mohtasib Azhar Hamid has said that efforts were being made for providing prompt, free and impartial relief to complainants through a mechanised system in the country.
Addressing members of Sialkot Chamber of Commerce and Industry (SCCI) and bankers here on Tuesday he said that 870 complaints were received by the Banking Mohtasib Secretariat, of which 600 were under process, and the remaining complaints are expected to be resolved in the near future.
The prime aim of setting up Banking Mohtasib was to resolve the disputes between banks and customers with a commitment to deliver free of cost, speedy solutions in a manner that is impartial, fair and equitable to all parties through a process which is largely conciliatory. Where mediation is unsuccessful, the Ombudsman would recommend a basis for settlement of the dispute, he added.
Azhar told the audience that at present 25 countries have banking ombudsman, out of which 12 are working in private sector, whereas in 11 countries banks and industrial sector had established ombudsman's offices. In Pakistan, Banking Mohtasib has been entrusted with powers and responsibility to entertain complaints against scheduled banks by their customers and from scheduled banks against other banks, he said.
He said that suggestions for procedural improvement to the banks were being recommended so that through a generalised system deficiencies are removed and service standards improved. The Banking Mohtasib can recommend to State Bank of Pakistan for initiating inquiry or suitable action against a bank found violating banking laws and regulations, he added.
He said that the Banking Mohtasib has powers to direct that loans and advances should be given to a complainant, but has no jurisdiction to consider a complaint against a bank's loan mark-up polices, risk policies or pricing of products and service, schedule of charges and other policy matters.
The Banking Mohtasib said that only small companies, especially SMEs, could file complaints against scheduled banks for settlement of disputes.
In his address of welcome, SCCI President Dr Nouman Idris Butt said that SME Bank should adopt flexible policy for extending loans facility at low mark-up to facilitate the SMEs of this export-oriented city and hub of cottage industry of the country. The Banking Mohtasib would play an instrumental role in resolving the disputes between scheduled banks and companies, he added.