The State Bank of Pakistan (SBP) has issued Circular No 4 of 2014 titled 'Financial Consumer Protection'. The Circular encloses a detailed note on financial consumer protection, its significance, global developments and bank's own expected role vis-à-vis the consumer protection. It is expected that its issuance will transform financial consumer protection into a principle-based adoption rather than a compliance check for the banks.
The Circular requires all Banks/DFIs/MFBs to develop and implement their own framework on "Fair Treatment of Consumers", duly approved by their BoDs and implemented by July 1, 2015. It is expected that the Banks/DFIs/MFBs will inculcate conducive culture enduring fair and quality customer service while delivering banking services to their customers.
The SBP in its endeavour to foster financial consumer protection across the industry has issued several market conduct instructions for banks, however, it has been noticed that financial consumer protection is perceived to be limited to complaint handling only.-PR