Directive to banks: SBP promotes consumer protection

KARACHI: The Consumer Protection Department (CPD) of the State Bank of Pakistan has issued a circular titled “Financial Consumer Protection”. It has a detailed note on consumer protection, its significance, global developments and banks’ expected role. It is expected that its issuance will transform Financial Consumer Protection into a principle-based adoption rather than a compliance check for the banks. The circular requires all banks, development finance institutions (DFIs) and microfinance banks (MFBs) to develop and implement their own framework for fair treatment of consumers, approved by their board of directors and implemented by July 1, 2015. It is expected that the banks/DFIs/MFBs will create conducive culture, ensuring fair and quality customer service while delivering banking services to their customers. In order to disseminate the real connotation of Financial Consumer Protection, the SBP has issued the subject circular entailing its meaning and the conduct expected from banks and DFIs for its advocacy.

Published in The Express Tribune, August 30^th, 2014.

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