The Role of the Banking Mohtasib Pakistan in Complaint Resolution

August 30, 2025 Muhammad Mobasher Ali

Introduction

The financial sector plays a vital role in the economic growth and stability of Pakistan. However, like in any service industry, disputes and grievances between customers and banks are inevitable. To address these grievances fairly, transparently, and efficiently, the Government of Pakistan established the Banking Mohtasib Pakistan (BMP) in 2005 under the Banking Companies Ordinance, 1962. The institution provides an independent, impartial, and free-of-cost forum for customers to lodge complaints against banks, ensuring accountability and strengthening public trust in the financial system i.e. Complaint Resolution Banking Mohtasib.

What is the Banking Mohtasib Pakistan?

The Banking Mohtasib Pakistan is an autonomous dispute resolution office that functions as an alternative dispute resolution (ADR) mechanism. It deals with complaints relating to maladministration, poor service, unfair practices, delays, or any violation of banking laws, rules, or regulations.

Key features include:

Independent and impartial authority
Free service for complainants (no legal or administrative fee)
Swift resolution mechanism compared to lengthy court proceedings
Powers to recommend corrective action against banks

Jurisdiction of the Banking Mohtasib

The BMP can entertain complaints regarding:

Delays or refusal in providing banking services (account opening, funds transfer, clearing, remittances, etc.)
Fraudulent transactions or unauthorized debits
Unjustified charges, deductions, or hidden fees
ATM, digital banking, and credit/debit card disputes
Complaints about recovery procedures where harassment or violation of the code of conduct is involved
Violation of State Bank of Pakistan (SBP) instructions

However, certain matters fall outside its jurisdiction, such as policy decisions of banks, loan sanctioning, or cases already pending in courts.

Complaint Resolution Process

The Banking Mohtasib follows a structured process to ensure transparency:

First Approach to the Bank – Customers must first lodge their complaint with the bank. If unresolved within 45 days, the matter can be taken to BMP.
Filing the Complaint – Complaints can be filed via post, email, online portal, or in person, with necessary details and supporting documents.
Preliminary Scrutiny – The BMP office examines whether the complaint falls within its jurisdiction.
Investigation – Both the complainant and the concerned bank are asked to present their stance and documents.
Decision/Findings – The Mohtasib issues a decision, which may include directing the bank to rectify the issue, compensate the customer, or change procedures.
Appeal Process – If either party is dissatisfied, an appeal can be filed with the President of Pakistan, whose decision is final.

Achievements of the Banking Mohtasib Pakistan

Increased Awareness: Through awareness campaigns, more customers are now aware of their rights and avenues for complaint resolution.
Quick Relief: Most cases are resolved within a few months, compared to years in traditional courts.
Consumer Protection: Thousands of depositors and account holders have been provided relief against wrongful practices.
Banking Reforms: Repeated complaints often highlight systemic issues, prompting SBP and banks to improve processes.

For instance, in 2023 alone, the BMP reported over 35,000 complaints received and more than PKR 1.2 billion in relief provided to banking customers.

Challenges Faced

Despite its significance, the BMP faces some challenges:

Limited Public Awareness – Many rural customers are unaware of this institution.
Growing Digital Banking Complaints – Increasing cyber fraud and online scams require more resources and expertise.
Implementation of Recommendations – At times, banks delay implementing Mohtasib’s orders, causing frustration.
Capacity Issues – With rising complaints, there is a need for more staff and better technology support.

Future Outlook

To strengthen its role, the following steps are essential:

Awareness Campaigns – Educating the public about their rights and the complaint process.
Technological Upgradation – Adopting digital platforms for faster case tracking and communication.
Enhanced Collaboration with SBP – To ensure strict compliance with regulatory instructions.
Regional Outreach – Establishing more regional offices for accessibility.
Specialized Units – Dedicated desks for digital banking frauds and vulnerable customer segments.

Conclusion – Complaint Resolution Banking Mohtasib

The Banking Mohtasib Pakistan serves as a guardian of consumer rights in the financial sector, bridging the gap between banks and customers. By offering an accessible, free, and independent platform for dispute resolution, it not only provides relief to individuals but also promotes trust and accountability in the banking industry. Strengthening this institution is crucial to ensuring financial inclusion, enhancing customer confidence, and supporting the long-term stability of Pakistan’s banking system.

📌 References:

Banking Mohtasib Pakistan Official Website: https://www.bankingmohtasib.gov.pk
State Bank of Pakistan: https://www.sbp.org.pk
Annual Report 2023 – Banking Mohtasib Pakistan

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