Your bank took your money and will not answer your calls. Or you deposited a cheque and it bounced back after three weeks. Or money left your account and the bank says it was your fault.
You do not have to accept it. Pakistan has a free office for exactly this. It is called the Banking Mohtasib.
What is the Banking Mohtasib?
The Banking Mohtasib is an independent office that hears complaints against banks. It was set up in 2005 under Part IV-A of the Banking Companies Ordinance 1962, according to its own annual report.
Its job is to look into banking malpractices, unfair actions, delays and violations of banking laws. It tries to settle disputes between you and your bank. You pay nothing for it. You do not need a lawyer.
Understand one thing first. The bank itself is the first place to complain. The Banking Mohtasib is the second forum. The State Bank of Pakistan says this in its official complaint handling mechanism.
What complaints can it hear?
The law gives it a wide net. Under the Banking Companies Ordinance 1962 it can look into:
- delays or fraud in the payment or collection of cheques, drafts or other banking instruments
- fraudulent or unauthorized withdrawals from your account
- complaints from exporters and importers about letters of credit
- complaints about foreign currency accounts and remittances from abroad
- markup or interest charges that go against your agreement or State Bank rules
- problems with paying utility bills through the bank
For public sector banks it can also hear complaints of corruption, nepotism and gross negligence by bank officers.
What it cannot do
Knowing the limits saves your time. The Banking Mohtasib cannot:
- order a bank to give you a loan, advance or credit card
- stop a bank from acting, because it has no power to pass a stay order
- hear complaints against the State Bank of Pakistan, microfinance banks, investment banks, insurance companies, leasing companies or development finance institutions
- hear complaints about a bank's pricing policies or schedule of charges
- hear a matter that is pending in court or that a court has already decided
- hear a matter the State Bank has already decided
If your bank is not a scheduled bank, this office may not be the right place. For microfinance banks, the State Bank handles complaints as the second forum.
Step 1: complain to your bank first
The law requires one step before you can go to the Banking Mohtasib. You must write to your bank and tell it you intend to file a complaint.
Keep a copy of your letter and proof that you sent it. If you complained through the bank's app or email, save the screenshots. You will need the dates.
Step 2: file with the Banking Mohtasib
After you write to the bank, the clock starts. The bank gets 45 days to reply.
- If the bank does not reply in 45 days, you can file a complaint.
- If the reply is unsatisfactory, you can file a complaint.
- If the bank sends a decline letter, you can file immediately.
You must file within the 45 days that follow the bank's reply window. If you miss that, the Banking Mohtasib can still accept your case if your delay had a valid reason.
Filing is free. Use the online complaint form on the official website. You give your details, your bank and branch, what happened and what you want. You declare on oath that the matter is not in court and not under State Bank investigation. You confirm that you served the notice on your bank.
You can also file at any Banking Mohtasib office or by post to the head office in Karachi. You do not need to travel. If the office needs to meet you, it arranges the meeting near your city.
What happens after you file
The Banking Mohtasib reads your complaint and asks the bank for its side. It tries to settle the matter by agreement first. It can call for documents from the bank.
Most complaints are resolved within about two months. Complex ones can take longer.
If your complaint is justified, the Banking Mohtasib can direct the bank to reconsider the matter, cancel or change its earlier decision, and pay you reasonable compensation for the loss you actually suffered.
The bank must implement the decision within 40 days. If it does not, the State Bank can impose a fine or penalty on it.
What you can claim
There is no ceiling on the amount you can claim. But the compensation covers the loss you actually sustained. The Banking Mohtasib does not award damages for mental agony or loss of reputation.
Keep your proof of loss ready. Bank statements, receipts and written replies all help.
What if you disagree with the decision?
Both sides have rights after a decision.
- A bank can ask the Banking Mohtasib to review its decision within 30 days.
- You can send a representation to the President of Pakistan within 30 days.
If no review is filed, the decision becomes final and binding. If your complaint is rejected, you still keep the right to file a suit in court.
One warning. If you go to court while your complaint is pending, tell the Banking Mohtasib. Once a court takes the matter, it loses jurisdiction.
The State Bank route
There is another official route. The State Bank runs a customer complaint portal called Sunwai. It takes general banking complaints and complaints about Roshan Digital Accounts. Matters that are urgent or regulatory in nature also go to the State Bank.
Where this fits with other options
A bank dispute can also end up in court. If your cheque was dishonoured, cheque bounce in Pakistan is an offence under section 489-F of the PPC. If the bank owes you money and refuses to pay, you have legal routes for money recovery in Pakistan. And if the free route does not settle things, you can file a consumer court complaint in Pakistan.
Start with the free route. Write to your bank. Keep your proof. If 45 days pass without a fair answer, file with the Banking Mohtasib. It costs nothing and you can do it from home.
Ask Lexiber free in English or Urdu. It shows you the exact section behind every answer.
For the full list of routes when any company wrongs you, read how to complain against a company in Pakistan.
More legal guides on the Lexiber blog and the Lexiber home page.
