HBL customers top complainants in 2022

KARACHI: The banking customers have filed the highest number of 4,701 complaints against Habib Bank Limited (HBL) during the calendar year 2022.

A total of 2,958 unsatisfied customers of HBL filed complaints at the office of the Banking Mohtasib Pakistan, while another 1,743 complaints were filed at the prime minister’s portal.

The second highest number, 4,646 complaints, was filed against the United Bank Limited (UBL) during the year under review.

Around 2,597 complaints were filed against the UBL at the Banking Mohtasib Pakistan and another 2,049 complaints were filed at the prime minister’s portal.

According to the Banking Mohtasib, during the period under review, a total of 30,493 complaints were received, while 4,772 complaints were carried forward. Thus, the total complaints in hand stood at 35,265, of which 21,822 were resolved amicably through reconciliation, while after formal hearings, findings and orders were passed in 734 cases.

Around 5,102 complaints were found incomplete and required further information or were rejected being frivolous and for want of jurisdiction, as the same either pertained to insurance or related to microfinance banks and fund managers or administrative issues of the banks.

The prime minister’s portal (Government-owned system based on mobile application) was introduced in 2019 and complaints related to the banking sector were received at the Banking Mohtasib Pakistan Secretariat. During 2022, 12,979 complaints were received through the prime minister’s portal.

An increase of 31 per cent was observed in the receipt of public complaints lodged directly with the Banking Mohtasib, whereas, 21 per cent decrease was observed in the complaints received at the prime minister’s portal, showing a decrease of 8 per cent in the total number of complaints received during the year.

Efforts were made to dispose of complaints expeditiously. However, depending on the complexity, some complaints take longer time to resolve.

Provincial-wise, the banking customers in Punjab filed the highest number of 22,227 complaints during 2022; followed by Sindh, 8,652; Khyber-Pakhtunkhwa, 3,064; and Balochistan with 571 complaints.

The Banking Mohtasib’s role in the financial industry is to resolve disputes through a process, which is largely conciliatory and where such mediation is unsuccessful to adjudicate and pass a speaking order to decide the dispute. In relation to all the commercial banks operating in Pakistan, the Banking Mohtasib has been empowered to entertain complaints of the following nature:

Failure to act in accordance with the banking laws and regulations, including policy directives or guidelines issued by the State Bank of Pakistan from time-to-time.

Delays or fraud in relation to the payment or collection of cheques, drafts, other banking instruments or transfer of funds.

Fraudulent or unauthorised withdrawals or debit entries in accounts.

Complaints from the exporters or importers relating to banking services and obligations, including the letters of credit.

Complaints from the holders of foreign currency accounts whether maintained by residents or non-residents.

Complaints relating to remittances to or from abroad.

Complaints pertaining to markup or interest rates on the ground of a violation of an agreement or directives of the State Bank of Pakistan.

Complaints relating to payment of utility bills.

In relation to banks in the public sector, the institution is authorised to entertain complaints against such banks on the following additional grounds, as well: corruption or mala fide practices by the bank officers; gross dereliction of duty in dealing with the customers; and inordinate delays in taking decisions.

However, the institution cannot accept complaints relating to the banks’ policy matters. For example, the following matters lie outside the jurisdiction of the Banking Mohtasib:

Matters relating to grant of loans, advances or finances to the customers.

Complaints against the banks’ loan and markup policies, risk policies, or product and service pricing as included in their schedule of charges and or any other policy matter.

Grievances of the banks’ employee or ex-employee pertaining to the terms and conditions of their service also fall outside the jurisdiction of the Banking Mohtasib.