ISLAMABAD: President Dr. Arif Alvi has endorsed the Banking Mohtasib’s directives, affirming that Allied Bank Ltd (ABL) must pay Rs 344,600 to a customer who fell victim to fraudulent fund transfers.
The President maintained that the bank’s maladministration, opening the fund transfer facility without the customer’s consent, resulted in financial losses.
In response to ABL’s representation against the Banking Mohtasib’s decision, the President emphasized that the bank failed to fulfil its statutory obligations and demonstrated a basic irregularity by activating Internet Banking/Electronic Funds Transfer (IB/EFT) without the customer’s consent. The President noted that had ABL not opened the IB/EFT facility without authorization, the customer could have been spared the financial loss incurred through no fault of their own.
The complainant, Mr. Ameer Ali Wasan, lodged a complaint with the bank after the fraudulent transaction, but his grievance remained unresolved. Turning to Banking Mohtasib for a remedy, he secured a directive for ABL to refund the defrauded amount. However, ABL contested the decision by filing a representation with the President.
During the hearing, the President highlighted ABL’s failure to establish the legitimacy of the disputed transaction under the Payment System and Electronic Funds Transfer Act, 2007. He expressed concern over the bank’s lack of alertness, as the transactions occurred rapidly on a single date, suggesting a potential red flag that could have triggered the bank’s alert system.
Given the circumstances, the President concluded that IB/EFT was an unsolicited facility, and ABL had violated various mandatory provisions of the Payment Systems and EFT Act 2007, along with directives from the State Bank of Pakistan regarding the opening of such channels.
The President rejected ABL’s representation and directed the bank to report compliance to Banking Mohtasib within 30 days from the date of the order.
