Jurisdiction

The Banking Mohtasib has been entrusted with the power and responsibility to entertain complaints against scheduled banks by their customers and from scheduled bank against another bank.

The Mohtasib will facilitate the amicable resolution of complaints after giving hearings, where necessary, to the complainant and the concerned bank. In the event that complaints cannot be resolved by consent, the Mohtasib will make recommendations which will be communicated to the concerned bank with the direction to reconsider the matter or, in cases where it becomes necessary the Mohtasib may pass an Order against the bank. Banking Mohtasib can not award demages against banks. However compensation for actual loss suffered and grant of resonable costs incurred in the pursuit of justice by an aggrieved party can be considered by the Banking Mohtasib. The Mohtasib may also suggest procedural improvements at banks so that generalized systemic deficiencies are removed and service standards are improved.

The Mohtasib may recommend to the State Bank of Pakistan to initiate an inquiry or take suitable action against a bank found to be in violation of banking laws and regulations. In respect of public sector banks, the Mohtasib is further empowered to entertain cases of malpractice, corruption and flagrant dereliction of duty by officers and submit findings to the State Bank of Pakistan or the Government of Pakistan for action to include criminal prosecution or disciplinary action as the State Bank of Pakistan may deem fit.

It can be reasonably expected that those investigated will comply with the Ombudsman's decision. However, the law in Pakistan provides that where complainants or banks do not agree with Banking Mohtasib's findings, they can appeal to the Governor, State Bank of Pakistan who shall decide the appeal within 60 days an order passed by the Banking Mohtasib which has not been appealed within 30 days shall become final and operative.

Manner of exercising the jurisdiction

The authority and power to be exercised by the Banking Mohtasib have been specified for private and public sector banks.

In relation to all banks operating in Pakistan, the Banking Mohtasib has been empowered to entertain complaints of the following nature:

• failure to act in accordance with 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 or other banking instruments or transfer of funds.
  
• fraudulent or unauthorized withdrawals or debit entries in accounts.
  
• complaints from exporters or importers, relating to banking services and obligations including letters of credit.
  
• complaints from holders of foreign currency accounts whether maintained by residents or non-residents.
  
• complaints relating to remittances to or from abroad.
  
• complaints relating to payment of utility bills.

In respect of public sector banks, the Banking Mohtasib would in addition to the foregoing, entertain complaints pertaining to

• corruption or malafide practices by bank officers
• gross dereliction of duties in dealing with customers and
  inordinate delays in taking decisions

Banking Mohtasib has been given adequate powers to call for such information as would be relevant for the disposal of complaints, receiving evidence on affidavit an issuing commission for the examination of witnesses provided confidentiality is not infringed.

Matters outside Banking Mohtasib authority:

The Banking Mohtasib does not have the power to direct that loans and advances be given to a complainant.

Further, the Banking Mohtasib has no jurisdiction to consider a complaint against a bank's loan and mark-up policies, risk policies, or pricing of products and services (schedule of charges) and any other policy matter.

The Banking Mohtasib can not accept a complaint which is being or has been investigated by the State Bank of Pakistan or any complaint which is sub-judice or has been decided upon by a court of law or would more appropriately be dealt with by a court of law.

The Banking Mohtasib shall not accept complaints of bank employees pertaining to their terms and conditions of service.