When you enter a bank branch, the spick and span staff will welcome you with a broad smile provided that you are a well-fixed depositor. But if you are a commoner with a few hundred thousands of bucks in your accounts, you should be ready to face bureaucratic contempt and ungracious behaviour from the bank employees. Yes, it is not professionalism, as the bank is a commercial entity and it means business, but there is a need to rein in everything in Pakistan and the bank employees are not an exception. However, things do not just stop here. Banks can ruin your peace of mind if you make a slightest delay in depositing the credit card fees. The bank can charge any amount of its choice calculated by its financial managers and it will continue to multiply until you pay the accumulated dues. Otherwise if you fail to act in time, you will receive threatening calls and can be blacklisted in the banking circles.
The key to regulate bank affairs is in the hands of the State Bank of Pakistan, which routinely sends advice to the banking sector to stop manipulation of any degree. A recent circular issued by the central bank is also a right step in the right direction. The advice is aiming at not only to ensure the protection of the financial consumers by a full compliance of the consumer rights already enshrined in the banking rules, but it also suggests a consolidated practice based on principles to facilitate the small consumers. The circular is issued to all banks, development financial institutions and microfinance banks, asking them to devise a framework based on just behaviour with consumers and implement it by July 1, 2015 after getting approval from their respective boards of directors. The circular expects that the banks will express pleasing and just behaviour with their small financial consumers.
The circular says that the recent developments in financial sector, both at home and abroad, have proved that adequate financial consumer protection is crucial to the financial stability of the banking industry, adding that an effective financial consumer protection framework is indeed a major imperative for creating fair market infrastructure where consumers make informed financial decisions, have confidence in the banking industry, understand and exercise their rights, and have effective recourse for their grievances.
The circular also adds that “the SBP, in its endeavor to foster financial consumer protection across the industry, has issued several market conduct instructions for banks, however, it has been noticed that financial consumer protection is perceived to be limited to complaint handling only.”
After clear instructions by the central bank, it is hoped that the financial institutions will ensure a quality consumer service and a fair banking culture as the banks are the base of economy.
