In a bid to enhance customer service and streamline complaint resolution, the Banking Mohtasib Pakistan has revised the timeframe within which commercial banks are required to respond to customer grievances. As of November 2024, banks must address customer complaints within 30 days instead of the previous 45-day period. This amendment to the Banking Companies Ordinance 1962 aims to improve the efficiency and responsiveness of banks, ensuring that customers experience faster resolutions to their issues.
The change, introduced under sub-section (2) of Section 82D of the Ordinance, represents a significant shift in Pakistan’s banking sector’s approach to customer service. “The response period for addressing banking customers’ complaints has been reduced by 15 days,” stated the official amendment. “Banks are now mandated to respond to complainants within 30 days, as opposed to the previous 45-day requirement.” This reduction underscores a commitment to customer service within the regulatory framework, acknowledging the growing demand for prompt support in the financial services industry.
According to the updated regulations, if a customer is dissatisfied with the bank’s response or if the bank fails to respond within the 30-day period, they have the right to escalate their complaint to the Banking Mohtasib Pakistan within a subsequent 30-day window. This additional step offers customers an accessible pathway for recourse, reinforcing accountability across the banking sector.
The amended section of the Ordinance clarifies the complaint escalation process: “Prior to filing a complaint, the complainant shall request the concerned banking company to address their grievances. If the bank either fails to respond or provides an unsatisfactory reply within 30 days, the complainant may file a complaint with the Banking Mohtasib within an additional 30-day period.” Furthermore, the amendment provides flexibility by allowing the Banking Mohtasib to condone delays in filing if justified, helping ensure that customers’ concerns are addressed even in exceptional circumstances.
The revision is officially documented in the Extraordinary Gazette of Pakistan, marking a formal update to banking regulations that now prioritizes a faster resolution process. Banking Mohtasib Pakistan’s decision reflects a broader move towards customer-centric policies within Pakistan’s financial system, aligning with international standards for customer service and dispute resolution in the banking sector. It also addresses a rising demand for improved customer service among bank clients who seek swift, transparent, and efficient handling of their concerns.
For banks, this change requires updating internal processes and policies to comply with the tighter response timeframe. Many banks will likely need to invest in resources to handle customer complaints more quickly, ensuring compliance with the amended regulation. This may involve leveraging technology to streamline complaint handling and tracking, as digital solutions can facilitate faster communication between banks and customers. Banks could also face pressure to enhance their customer support training and potentially expand their teams to manage increased complaint resolution demands within the shorter timeframe.
This regulatory update aligns with the Banking Mohtasib Pakistan’s continued efforts to ensure financial institutions operate transparently and in the best interests of their customers. By offering a more structured and efficient complaint-handling process, the updated regulation can contribute to restoring and reinforcing consumer confidence in Pakistan’s banking system, a key component of maintaining a stable financial environment.
The updated ordinance highlights a shift in regulatory priorities toward customer satisfaction and efficiency. It signals the growing importance of regulatory frameworks that protect consumer rights, ensure timely service, and build public trust in the financial industry. With financial services becoming more accessible through digital and online platforms, customers expect quicker responses and seamless service from their banks. This amendment is one of many steps Pakistan’s banking sector is taking to modernize and meet the needs of a more digitally engaged customer base.
In summary, the Banking Mohtasib Pakistan’s reduction in the complaint response period to 30 days represents a decisive step toward enhancing customer service standards in Pakistan’s banking industry. By ensuring faster complaint resolutions, this regulatory change is likely to contribute positively to consumer trust in the financial system, reinforcing the sector’s commitment to customer-centered practices.