KARACHI, April 29: The office of the Banking Mohtasib (ombudsman) Pakistan will start functioning from Monday, State Bank Governor Dr Ishrat Husain told reporters here at a joint press conference with Azhar Hamid, who has been appointed the first Banking Mohtasib. Banking Mohtasib Secretariat is located on the fifth floor of Shaheen Complex, M.R. Kiyani Road, Karachi, and regional offices are located within the State Bank buildings in Lahore, Peshawar, Quetta and Rawalpindi. The website is www.bankingmohtasib.gov.pk. It includes relevant information and a detailed list of common questions with answers.

President Pervez Musharraf has appointed Azhar Hamid as the first Banking Mohtasib for a fixed term of three years. Mr Hamid is an international banker with a career spanning 41 years with ANZ Grindlays Bank and latterly Standard Chartered. He retired as country head of Standard Chartered in Pakistan in 2003. Upon retirement he was nominated by the government on the board of directors of the State Bank which position he has now relinquished.

The Banking Mohtasib will entertain complaints of the following nature: Failure to act in accordance with banking laws and regulations, including policy directives or guidelines issued by the SBP; delays or frauds in relation to the payment or collection of cheques, drafts or other banking instruments of 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 pertaining to mark-up or interest rates on grounds of a violation of agreement or of the SBP directives; and complaints relating to payment of utility bills.

In respect of public sector banks, the Banking Mohtasib has been given additional authority to entertain complaints pertaining to corruption or mala fide practices by bank officers; gross dereliction of duties in dealing with customers; and inordinate delays in decision making.

In addition to current and new complaints, the Mohtasib will also entertain complaints already rejected by banks after July 1, 2004. However, in such cases, complainants will not need to give the 90-day notice to the banks.

The Mohtasib will entertain complaints from businesses with annual turnover of Rs100 million and from all individuals. The amount of compensation that the Banking Mohtasib may grant is limited to Rs1 million irrespective of the value of the underlying transaction from which the dispute has arisen. For example, an exporter who has forwarded an export bill of Rs5 billion through a bank on collection basis may have a claim for financial loss of Rs1 million or less. Such a complaint can be lodged with the Banking Mohtasib. But if the claim for financial loss exceeds Rs1 million the complaint would fall outside the jurisdiction of the Mohtasib.

Where complainants do not agree with the Mohtasib’s findings they can appeal to the State Bank within a period of one month from the date of the Mohtasib’s decision. The complainants may also take their grievances to courts withdrawing the complaint from the Banking Mohtasib.

The Mohtasib will not be able to entertain complaints relating to bank policy matters e.g. schedule of charges, loan and mark-up policies, product pricing etc. The Banking Mohtasib does not have the power to direct the banks to give loans or advances to a complainant.

The Mohtasib will also not be able to entertain complaints by bank employees in respect of their terms of service and any matter that is sub judice or has already been decided in a court of law.