President imposes fine
on UBL on irresponsible representation
President Dr Arif Alvi has
imposed a fine of Rs 20,000 on United Bank Ltd (UBL) over filing a frivolous
representation in a disputed transaction case involving Rs 20,000.
He further ordered that the bank should
pay the fine in addition to returning the defrauded amount to its customer as
the bank adamantly filed frivolous representation wasting its resources and
time as well of the Banking Mohtasib of Pakistan (BMP) and the office of the
Head of State.
UBL had filed a representation
with the President against the orders of the BMP in a case where a customer had
attempted to withdraw cash of Rs 20,000 from UBL's ATM but the cash was not dispensed
whereas the customer's account was debited.
The president rejected the UBL's
representation on the grounds that the bank had failed to discharge the burden
and statutory liability cast upon it under the law by failing to comply with
the State Bank of Pakistan's directives that the banks should install external
cameras in ATM cabins within three months from the date of issue of SBP's
circular to have secondary evidence against cash claims to satisfy the
customers.
The president held that UBL had
failed to provide its investigation report and requisite information to BMP
office despite follow up and being given the opportunity during the hearing as
well.
The president directed the Bank
to pay the defrauded amount of Rs 20,000 to the complainant and report
compliance within 30 days.
He also upheld the order of BMP
and also imposed a fine of 20,000 on the bank for filing an appeal in a case
where small amount was involved and was less than even the cost of litigation
and was frivolous.