State Bank of Pakistan (SBP) has directed all commercial banks to reimburse customers if there is monetary loss incurred due to security breach of internet banking system (if not caused or contributed to by customers).
Security of Internet Banking:
Banks shall ensure internet banking systems with secure technology which should be regularly reviewed and updated as per requirements of the customers and advancement in the mechanism. They should take appropriate measures to ensure that its smartphone and mobile applications are secured and regularly reviewed and updated for this purpose.
Clearer Terms and Conditions:
The central bank also instructed banks to make available detailed terms and conditions to customers and also give general descriptive information relating to the use of internet banking services.
Banks should disclose prominently the issues when a customer enters into an agreement for internet banking service including the customer’s liability for unauthorized transactions, and all fees and charges which will apply to the internet banking service.
Banks should explain to customers about their obligations in relation to security for the internet banking service including means for reporting security incidents or complaints.
Upkeep and Monitoring of ATMs:
The central bank asked banks to establish centralized monitoring unit to monitor ATM operations 24/7 to address out of cash and out of order incidences; and ensure that fake currency notes/un-acceptable notes are not disbursed through ATMs.
Furthermore, the banks are directed to replace and repair ATMs and its parts after reasonable useful life as per international standards and practices.
Transparent tariff and processes:
SBP has issued a set of instructions to all commercial banks related to their business emphasizing on keeping the recorder of their customers confidential whereas avoid hidden charges of the services and products.
The banks will ensure credit of non-dispensed cash at ATMs in customer’s account on next business day, if the transaction is made at Same Bank at Same Branch;  within 3 business days if the transaction is made at Same Bank at Different Branch, Intra-City (within same city), the central bank said.
The bank with respect to non-interest charges will give 30 days prior notice before increase in charges and allow customers to exit the contract without penalty, provided such right is exercised within the notice period.
Privacy of Data and Strengthening Complaint Registration System:
All banks shall maintain fidelity and secrecy and shall not disclose any information about its customers and their accounts, as per provision of Section 33-A of the Banking Companies Ordinance, 1962, except where the customer has consented to disclose the information or compelled by laws/regulations.
The central bank directed all commercial banks to establish and strengthen a customers’ complaints unit for immediate resolutions of issues appointing a senior bankers for addressing issues with easy access given to customers.
The bank will strengthen complaints unit/section and identify and entrust responsibility to appropriate senior persons. The title/designation, telephone/fax numbers, email addresses and postal addresses of these persons will be available to the customers from the bank’s call centre, website and also included in billing and other communications of banks to facilitate customers with various modes of communication.
The entrusted senior person will acknowledge all complaints, address/handle and investigate complaints in a fair and prompt manner; devise a system for redressal of the complaints in an appropriate and courteous manner; reply the complainant clearly indicating the reasons/rationale of the decision being conveyed to him/her.
Use of Urdu Language:
The reply in Urdu language where the complainant has used the language other than English, if possible; respond complaints within a period of 10 working days under Section 36(2) of the Payment System and Electronic Funds Transfers Act 2007.
The banks are directed to send an interim reply where a complaint requires further investigation indicating the reasons for the time to be taken and expected date of action/response; and decide the case, within a period of 10 working days under Section 36(2) of the Payment System & Electronic Funds Transfers Act 2007.
