The Banking Mohtasib has sought amendments in the Banking Companies Ordinance 1962 to have a mechanism for speedy resolution of complaints against banks.
Addressing a press conference on the release of 5th Annual Report for the year 2009 on Thursday, Banking Mohtasib Pakistan Mansur ur Rehman Khan said that although the Banking Mohtasib is working well to resolve the cases, some changes in the ordinance must be made to accurately record the jurisdiction and responsibilities of the Banking Mohtasib and in this regard a set of proposed amendments, to remove deficiencies and to have a mechanism for speedy resolution of complaints, has been sent to the State Bank of Pakistan (SBP).
"Based on practical difficulties faced during the process of resolving complaints over the last four years, certain amendments in chapter IV-A of Banking Companies Ordinance 1962 have been proposed to the SBP," he said. It is believed that with the promulgation of amendment in the law, the complaint resolution mechanism would become speedier and more responsive, he added.
"We also want to enhance our reach to other cities, and planning in this regard is being done to set-up some new regional offices in other parts of the country including Khyber Pakthunkhwa", said Khan. He said that the Banking Mohtasib is restricted by the Lahore High Court to impose fines on banks in case of any violation of the law.
Khan said that the office of Banking Mohtasib remained vacant for an year from May 02, 2008 to April 30, 2009 which resulted in a back log of 1,843 complaints pertaining to last four years, however due to the efforts and zeal of the staff of Banking Mohtasib, all of them have been resolved.
"It is note worthy that the number of complaints solved during the 8 months from May to December, 2009 was 91.6 percent of the total number of complaints solved in the four preceding years," he said. During the period May-December 2009, 1,193 formal complaints were received in the Banking Mohtasib Pakistan Secretariat and by adding the back log, the total number of complaints stood at 3,036 out of which 2,879 were resolved, said Khan. The Banking Mohtasib issued orders to banks to pay a sum of over Rs 86 million to the complainants during the period, he informed.
A big proportion of complaints received, were related to consumer products out of which 60 percent of complaints related specifically to credit cards in the previous years, he further informed. "It is observed that a service oriented mind-set is lacking in some banks and the lower management hesitates to take actions on those complaints in which the bank is found to be in a weak position," he said. Moreover, it has also been seen that when complainants refer their issues to the line management of banks, the management sometimes defends and justifies their mistakes on unsustainable grounds, he added.
In order to streamline and revamp the complaint resolution process, a series of meetings were held with Key Contact Persons of those banks where a large number of complaints had been received, the Banking Mohtasib said and added that the banks were advised to revamp their internal system of communication and co-ordination between the Group Heads and Complaint Management Units to facilitate a speedy resolution of complaints.
According to the annual report, the object of Banking Mohtasib Pakistan is to provide speedy solutions in a manner which is impartial, fair and equitable for all parties and also to create a conducive environment whereby the banks are encouraged to resolve the issues at their end.
During the year 2009 certain initiatives were taken by the Banking Mohtasib that included: revamping of Complaint Resolution Process, justice at the door steps of complainants, up gradation of Complaint Tracking System, preparation of letters, complaint forms and mounted posters in Urdu, speedy resolution of complaints, re-Organization of office, the report said. The report contains a few case studies, which gives a glimpse of the nature of work of the Banking Mohtasib of Pakistan.
The Banking Mohtasib's report has highlighted systemic issues related to the banking sector which were brought to the attention of banks' senior management. Report has also been submitted to the SBP highlighting issues of a serious nature and their possible solutions.
The report-selected letters are also attached to the report submitted and in those letters complainants have expressed their grievances. These letters are a source of motivation and strength to the Banking Mohtasib Pakistan and his team. Akbar Ali Habib, regarding the activities of the institution during the year 2009, gave a detailed presentation on the occasion.