President directs ABL to refund Rs 344,600 to a customer
President Dr. Arif Alvi has upheld the orders of the Banking
Mohtasib, directing Allied Bank Ltd (ABL) to refund Rs 344,600 to a customer.
The amount was fraudulently transferred from the customer's account, and the
bank, in maladministration, activated the fund transfer facility without the customer's
consent, resulting in financial loss.
The decision, made after considering ABL's representation
against the Banking Mohtasib's ruling, emphasized that the bank failed to
fulfill its statutory liability and committed a basic irregularity by enabling
Internet Banking/Electronic Funds Transfer (IB/EFT) without customer approval.
President
urges banks to help protect people from online fraud
President Alvi noted that although the complainant received
a phone call resembling the bank's helpline, leading to the transfer of Rs
344,602 from his account, if ABL hadn't opened the IB/EFT facility without
consent, the customer could have been spared the financial loss.
Highlighting that the complainant never requested the IB/EFT
facility nor conducted any previous transactions through such channels, the
president underscored that ABL's failure to establish the legitimacy of the
disputed transaction raised concerns. The transactions occurred on a single
date, in a short time, and on a similar pattern, prompting the president to
express concern about the bank's alert system.
President
imposes fine on UBL on irresponsible representation
The citizen, Ameer Ali Wasan, filed a complaint with the
bank after the fraud, but the grievance remained unresolved. Subsequently, he
sought redress from Banking Mohtasib, leading to a directive for ABL to refund
the defrauded amount. ABL, dissatisfied, filed a representation with the
President, who, after a personal hearing, concluded that IB/EFT was an
unsolicited facility. The bank had failed to comply with mandatory provisions
of the Payment Systems and EFT Act 2007, as well as State Bank of Pakistan
directives regarding the opening of such channels.
President Alvi rejected ABL's representation, instructing
the bank to report compliance to Banking Mohtasib within 30 days from the date
of the order.
Source: Urdu Point