Customer Banking Disputes and Resolving Procedures in Pakistan: A Guide to Awareness, Processes, and Timelines"

By Usman Ahmad Jattala 

Banking disputes can be a source of significant concern for customers. In Pakistan, the resolution of such disputes is governed by a set of procedures designed to ensure fairness and transparency.The bank aims to resolve such disputes promptly. As per the State Bank of Pakistan’s guidelines, banks must address and resolve complaints within 10 working days, Here's an overview of the dispute resolution processes for various banking-related issues and the awareness measures for customers:

Inter Bank Fund Transfer (IBFT) Disputes

When a customer faces an issue with an IBFT, they should immediately contact their bank's customer service helpline. The bank will acknowledge the complaint and is required to address and investigate it promptly. If the dispute requires further investigation, an interim reply is sent to the customer detailing the reasons and the expected date of action or response. The turnaround time for resolving such disputes is typically within 7 to 10 working days, but complex cases may take longer.

ATM Cash Disputes

For disputes related to ATM cash withdrawals if the amount not reversed automatically within 48 hours, customers should report the incident to the bank helpline mentioned on ATM card as soon as possible. The bank will then follow its internal procedures to investigate the matter. The best practice is to provide provisional credit Which practice Pakistani banks don't follow, And the settlement will be done within 7 to 10 business days. For transactions in foreign countries, the period may extend to 90 days.

Point of Sale (POS) Machine Disputes

Disputes arising from POS transactions are handled similarly to ATM disputes. Customers are advised to contact their bank helpline, which will then initiate an investigation. The resolution process for POS disputes is outlined in the bank's dispute resolution mechanism, and customers should expect a resolution within a similar timeframe as ATM disputes.

Utility Bill Overdue Disputes

In cases where there is a dispute over utility bill payments made through banking channels, customers should approach their bank or the utility provider, depending on the nature of the dispute.

General Awareness and Procedures

Banks in Pakistan already have their internal complaint handling procedures in both English and Urdu for the convenience of their customers. This information available on notice boards at each branch and on the bank's website.

Turnaround Time for Banking Dispute Resolution

The Banking Mohtasib Pakistan (BMP) endeavors to resolve most complaints within 2 months. However, depending on the complexity, some complaints can take longer to resolve. Most of the Bank, have a tentative turnaround time (TAT) for handling complaints within 7 working days and a maximum of 15 working days. For fraud-related complaints, the TAT for a final reply is within 30 days.

By understanding these procedures and the expected turnaround times, customers can navigate the dispute resolution process more effectively and with greater peace of mind. Banks are making continuous efforts to improve their service delivery and complaint resolution mechanisms to enhance customer satisfaction and trust in the banking system.