Bank will not refund? Go to the Banking Mohtasib.

Myth or fact?

What people often think.

• Myth: Only a court can make a bank pay me back.
• Fact: The Banking Mohtasib can direct a bank to pay reasonable compensation he fixes (Banking Companies Ordinance s.82E(1)(c)).

What you can complain about.

Section 82B(5)(a), BCO.

• Unauthorised debitsFraudulent or unauthorised withdrawals or debit entries in your account.
• Cheques and transfersDelays or fraud in paying or collecting cheques, drafts or fund transfers.
• RemittancesMoney sent to or from abroad. Utility bill payments too.

Quick quiz. Straight there?

Guess first, then swipe for the answer.

• A. Yes, at once
• B. No, ask the bank first
• C. Only through a lawyer

Answer: B. Section 82D(2).

The rule in the law, as substituted in 2024.

“Prior to making a complaint, the complainant shall request the concerned banking company to redress the complainant's grievances and if the banking company either fails to respond or makes a reply which is un-satisfactory to the complainant within a period of thirty days, the complainant may file a complaint at any time thereafter within a further period of thirty days.”

Banking Companies Ordinance, 1962 · Section 82D(2), Procedure for making complaints

The route.

Three steps, in this order.

• Your bankWrite to the bank and ask it to fix it.
• Thirty daysNo reply, or a reply you are not happy with.
• MohtasibComplain within the next thirty days.

What it must have.

Section 82D(1), BCO.

• In writing, on oathOn solemn affirmation or oath, addressed to the Banking Mohtasib.
• The transactionFull particulars of what went wrong.
• About youYour name and address.

What he can order.

Section 82E(1), BCO.

• SettleHe first tries an amicable settlement through mediation.
• UndoThe bank modifies or cancels its decision.
• PayReasonable compensation to you, as he fixes it.

Know the limits.

Sections 82B, 82D and 82E.

• Court casesNot a matter already decided by the State Bank or a court, or pending in court.
• No loansHe cannot direct a bank to give you a loan (s.82E(3)).
• Rejected?You can still file a suit against the bank (s.82E(7)).

Myth or fact?

The late complaint.

• Myth: I missed the thirty days, so it is over.
• Fact: The Banking Mohtasib may condone the delay if satisfied there were grounds for it (s.82D(2), proviso).

Trouble with your bank?

Ask FAI in your own words. It answers with the exact section and the judgments behind it.

• Rs 80,000 was taken from my account without my permission and the bank will not refund it. What can I do?
• Draft a complaint to the Banking Mohtasib.

Example questions

Sources

• Banking Companies Ordinance, 1962 · Section 82D(2)
  Procedure for making complaints