BackThe Banking Mohtasib (Ombudsman) Pakistan has issued the twelfth Annual Report for the year ending 31 December, 2016.
The highlights of the report are as under:
- The total number of complaints received by the Banking Mohtasib Pakistan (BMP) Secretariat stood at 8780 in 2016 as against 6,091 in 2015, showing an overall increase of 44%.
- 49% of formal complaints were granted, 36% declined, and 4% were rejected while 11% reported pending at the year-end. As of December 31, 2016, 141 formal and 391 informal complaints were outstanding, which have since been disposed off by the time of the issue of the Annual Report.
Like the previous reports, the current annual report also includes analysis of systemic deficiencies and control weaknesses in banks which the Banking Mohtasib came across during the course of investigations of complaints in the year under review.
The report again highlighted the increasing trend of complaints related to internet banking and sale of third party products particularly Bancassurance. Since the customer availing the internet banking facility are helpless against the designs of the fraudsters, it is the fiduciary responsibility of the bank to protect it customers by adopting and implementing the “Regulations for Security of Internet Banking” issued by the State Bank of Pakistan in letter and spirit.
Further, the introduction of Branchless Banking and its expansion in country’s financial system has also been highlighted. Because of the simplified process, people from the rural areas and even low paid workers in urban areas prefer using the services offered under the umbrella of branchless banking. However, there are some visible sign of financial risks which are required to be addressed.
Delay in complaint resolution on the part of Banks was also highlighted and they were advised to revamp their complaint resolution mechanism so as to cut the red tape system to enable the early and timely redressal of customer grievances.
The report also includes eleven case-studies based on some of the leading decisions of Banking Mohtasib.
The full report can be found here.
Source: Banking Mohtasib (Ombudsman) Pakistan
