BackThe Banking Mohtasib (Ombudsman) Pakistan published the ninth Annual Report for the year ending 31 December, 2013.
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 for which recommendations have already been made to the State Bank of Pakistan, the Central Bank of the Country.
The report includes 10 case-studies based on some of the leading decisions of Banking Mohtasib. Some specific cases briefly cited under observations on service culture, draw attention to the unsatisfactory attitude adopted by some banks towards the complainants and the complaint resolution process, and highlight the need to improve internal processes and service standards. Moreover, lack of proper training has also been attributed as the main cause of rising trend of complaints against banks relating to poor service.
Attention is also drawn towards the cases of frauds through parallel banking which could have been avoided, had the Bank implemented and monitored an effective dual control at branches. Moreover, it has also been observed that the delinquent staff after having committed fraud in one bank succeeded in getting job in another bank and found involved in fraud again. Therefore, the need on the part of banks was re-emphasized to revisit their HR and administrative policies so that fraudsters are kept away from the banks for their life time.
According to the Report, the total number of complaints received by the Banking Mohtasib Pakistan (BMP) Secretariat stood at 4,238 in 2013 as against 3,998 in 2012, showing an overall increase of 6%. Out of 4,238 complaints, 1091 were formal (submitted after adopting the procedure as laid down in the law), while 3,147 complaints were informal. In terms of complaint disposal, 45% of formal complaints were granted, 41% declined, and 2% rejected while 12% reported pending at the year-end. As on December 31, 2013, 138 formal and 33 informal complaints were outstanding. Out of these all but ten formal complaints were disposed off.
There is a significant increase in complaints relating to ATMs, credit cards, lockers, service inefficiency, gross dereliction of duty and Zakat deductions. These were mostly due to faulty ATMs and their frequent breakdown; malfunctioning of automated IT system at banks; security breakdown at bank branches; and lack of proper training of staff that led to poor service delivery and eventually to poor complaint resolution.
The Annual Report 2013 is available on the IOI website.
Source: Office of the Banking Ombudsman, Pakistan
