Pakistani Banks Ordered to Refund Millions to Fraud Victims Following Presidential Decision

The President of Pakistan, Asif Ali Zardari has ordered Allied Bank and Muslim Commercial Bank (MCB), among other major banks, to return a total of Rs 24.136 million to 31 victims of bank fraud in a decisive move to combat illicit financial transactions. The decision comes after a review of appeals contesting Banking Mohtasib’s decisions, which were upheld to provide justice for defrauded clients.

Targeted by fraudsters acting as bank officials, the victims lost their cash by means of dishonest methods including the collection of private financial data during phone calls. Upon their failure to receive assistance from their institutions, the affected individuals sought redress from Banking Mohtasib. The institutions subsequently challenged the Mohtasib’s decisions in separate petitions to the President, all of which were rejected.

Breakdown of the Refund Orders

• United Bank Limited (UBL): Directed to return Rs 11.57 million to 12 victims.
• Muslim Commercial Bank (MCB): Ordered to refund Rs 5.29 million to 10 affected individuals.
• Allied Bank Limited (ABL): Instructed to repay Rs 4.04 million following the dismissal of five appeals.
• Bank of Punjab (BOP): Three petitions were dismissed, with Rs 2.31 million ordered to be reimbursed.
• Askari Bank Limited: Required to refund Rs 490,000 in a single case.
• Habib Bank Limited (HBL): Directed to pay Rs 420,000 to one customer.

Speaking on the occasion, he highlighted the critical role of the Banking Mohtasib in addressing maladministration in the banking sector, providing victims with a timely and effective alternative to prolonged legal battles.

“The Banking Mohtasib is a vital institution that upholds the rights of the people against financial exploitation. My decision reflects a commitment to justice and transparency, ensuring that victims of fraud receive the relief they deserve,” the President remarked.

Individuals posing as bank representatives defrauded the victims by acquiring sensitive banking details through deceptive phone calls, ultimately draining funds from their accounts. After uncovering the fraudulent transactions, customers sought assistance from their banks, only to be met with denial of relief.

The President called on citizens to utilize the services of the Banking Mohtasib to address banking disputes, highlighting its ease of access and effectiveness in managing complaints concerning financial irregularities.

Hearings were conducted at Aiwan-i-Sadr, where the petitioners and respondents presented their cases. After reviewing the pertinent records, the final decisions were announced.