bpd circular no. 17 guidelines in dealing with customers complaints

8/13/2019 BPD Circular No. 17 Guidelines in Dealing With Customers Complaints

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Circulars/Notifications

BPD Circular No. 17 of 2004 June 07, 2004All Banks/DFIs,Dear Sirs,

GUIDELINES IN DEALING WITH CUSTOMERS COMPLAINTSSeveral complaints are received in State Bank of Pakistan every day stating that concerned banks/DFIs,due to bureaucratic attitude/behavior, are not attending to their grievances resulting in either financiallosses or damage to their businesses. In this regard, it has also been noted that complaints forwardedby SBP to various banks/DFIs are also not responded to promptly which results in a delay in deciding theissue. This state of affairs indicates that banks/DFIs either do not have a unit/section to deal withcomplaints or do not have a proper mechanism/procedure for resolution of public/clients grievances.This has been viewed with concern by SBP. Accordingly, it has been decided that each bank/DFI shouldimmediately identify & entrust responsibility to an appropriate senior person to deal with all sort ofcomplaints, either received directly by them or referred through different agencies/institutions, includingSBP. In case where some of the banks/DFIs already have entrusted the work to a unit/section, the samemay be strengthened appropriately.2. In this regard, the banks/DFIs shall observe the following minimum guidelines:-i) Identify and entrust the responsibility to an appropriate senior person to handle all sort of complaintsreceived.ii) The name, designation and contact details (phone, fax, e-mail, mobile etc) of person so identified

alongwith an officer working with him/her in this area may be sent to SBP immediately. In case of anychange in the name of concerned officer(s), the same may be notified alongwith aforesaid details within2 days to Director, Banking Policy Department.iii) The person and section/unit entrusted the work must:-a) Acknowledge all the complaints;b) Address/handle and investigate the complaints in a fair and prompt manner;c) Devise a system for redressal of the complaints in an appropriate and courteous manner and the replyto the complainant must be clear and indicate the reasons/rationale of the decision being conveyed tohim/her. If possible, the reply may be sent in Urdu language where the complainant has used thelanguage other than English.d) Identify the complaints of recurring nature and ensure that immediate corrective action is taken inthat area.e) Monitor the status of complaints received against the banks/DFIs, analyze the data periodically forimproving this activity. A regular report, containing statistics on the volume and type of complaintsreceived, settled/redressed, outstanding etc., should be submitted periodically to management forreview.iv) The complaints must be responded within a period of 10 working days. Where a complaint requires


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further investigation, an interim reply must be sent indicating the reasons for the time to be taken andexpected date of action/response. However, in any case, the final reply may be sent within a period notexceeding 45 working days, barring cases where reasonable grounds exist on record for not complyingwithin the prescribed time period.v) Regular audit of complaint unit/section must be conducted by internal auditors to check theperformance, effectiveness and utility of unit/section.3. In order to communicate to their customers and for expeditious resolution of complaints/grievances,the Banks/DFIs, within one month from the date of issuance of this circular, shall make appropriatearrangements to:-a) Prepare a leaflet indicating the procedure for lodgment of a complaint and its resolution both inEnglish and Urdu for the convenience of their customers and also post it on notice boards at each oftheir branch/office as also on their website (if available).b) Supply a copy of the leaflet to customers upon request.c) Make available copies of their internal complaint handling procedures, in each of their branches andoffices to which customers have access for expeditious disposal of complaints.4. Banks/DFIs must also ensure that where a complaint needs to be probed further the same may beinvestigated by an employee who is not directly involved with that particular complaint. The staff dealing

with complaints should be provided appropriate training in order to enhance their skills in expeditiousresolution of complaints and related matters/issues.

5. The complaints forwarded by State Bank of Pakistan should also be handled by the person/section/unit as indicated at para 2(i), 2(ii) and 2(iv) above. The designated person shall be the contactperson for SBP in this regard.6. State Bank of Pakistan, during the course of inspection, would particularly check the performance,effectiveness and functioning of the Complaint Section. Strict action as per provisions of law shall betaken against the bank/DFI and the concerned staff members of the complaint section/unit for non-compliance of instructions and negligence in handling complaints. In determining the overallassessment/performance of the banks during the course of onsite inspection, the functioning ofcomplaints section/unit, besides other, shall also be taken into account. 7. Please acknowledge receipt.


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Yours faithfully,Sd/-

(Muhammad Kamran Shehzad)Director

bpd circular no. 17 guidelines in dealing with customers complaints

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