8/10/2019 state bank pakistan
1/22
8/10/2019 state bank pakistan
2/22
LEGAL AND SUPERVISORYFRAMEWORK FORCONSUMER PROTECTION
8/10/2019 state bank pakistan
3/22
Consumer Protection
8/10/2019 state bank pakistan
4/22
An individual who buys products orservices fo r personal use and not for
manufacture or resale
Consumer
8/10/2019 state bank pakistan
5/22
The Role of Islam in Protection ofConsumers
The Holy Quran"The almighty says... O you who believe! Fulfill
your contracts" .(5:1)
"Give full measure when ye measure, and weigh with a balance that is straight; that isthe most fitting and the most advantageous inthe final determination." (17:35)
8/10/2019 state bank pakistan
6/22
History
2 nd world warPresident John F Kennedy (15 March 1962)United Nations Economic and SocialCouncil (1981)United Nations General Assembly (9 April1985)
8/10/2019 state bank pakistan
7/22
Why to protect a consumer?
Satisfaction of basic needs Safety Information
ChoiceBe heardRedress
Consumer Education A healthy environment
8/10/2019 state bank pakistan
8/22
United States of America
Consumer Protection Legislation/Legal Framework Commission Act (1914)
Consumer Credit Protection Act (1968)
Consumer Affairs Act (1971)
8/10/2019 state bank pakistan
9/22
Institutional Arrangement/Regulatory Framework
Office of Consumer Protection
Consumer Financial Protection Agency
Department of Commerce and Consumer affairs(DCCA)
General Services Federal bureau of consumer protection
8/10/2019 state bank pakistan
10/22
INDIA
8/10/2019 state bank pakistan
11/22
Consumer protection legislation/Frame work
India
Consumer Protection Act (1986)
Banking Ombudsman Scheme (2006)
8/10/2019 state bank pakistan
12/22
Institutional arrangements/RegulatoryFramework
Customer Service department
Banking Ombudsman section
Initiatives taken by Reserve bank of India
8/10/2019 state bank pakistan
13/22
PAKISTAN
8/10/2019 state bank pakistan
14/22
Legal Framework
1. Pakistani perspective
2. Institutional Arrangement comprises
o Banks own consumer complaint cells
o Banking Mohtasib
o Consumer Protection Department
8/10/2019 state bank pakistan
15/22
Consumer Protection Legislation
Islamabad consumer protection Act (1995)
KPK consumer protection Act (1997)
Baluchistan consumer protection Act (2003)
Punjab consumer protection Act (2005)
Sindh government consumer protection law isunder process
8/10/2019 state bank pakistan
16/22
State bank of Pakistan Regulations
Basic Banking Account (2005)Fair Debt collections Guidelines (2008)Collection of utility bill (1997)Pension disbursement through Banks (2010)
Service charges on PLS Deposits (2011)Suo-moto (2006)Foreign Exchange Deposits (2005)Dishonoring of Cheques and Stop Paymentinstructions (2005)
Recovery penalty amount imposed by SBP fromcustomers (2006)Minimum rate of return on Savings/PLS Deposits(2008)
8/10/2019 state bank pakistan
17/22
Institutional Arrangements/Regulatory
Framework
The consumer Eye Pakistan (TCEP)
Credit information bureau (CIB)
Banking Mohtasib Pakistan
Consumer protection department
8/10/2019 state bank pakistan
18/22
Laws
USA INDIA PAKISTAN
LAWS
Federal Trade
Commission Act
(1914)
Fair Trading Act
(1987)
Consumer Affairs Act(1971)
Consumer Credit
Protection Act (1968)
Competition and
Consumer Act (2010)
Wall Street Reform
and Consumer
Protection Act (Dodd-
Frank)
Consumer Protection
Act (1986)
Banking Ombudsman
Scheme (2006)
In Pakistan there is no
National Assembly law
for consumer protection.
Provincial Assemblies
like Islamabad Act(1995) KPK Act (1997),
Punjab Act (2005) ,
Baluchistan Act(2003)
SBP is working on
Consumer protections
laws.
Federal Ombudsman
Institutional Reforms
Act, 2013
8/10/2019 state bank pakistan
19/22
Role of oversight bodies
Role of oversight bodies
USA INDIA PAKISTAN Office of theConsumerProtection.
The United StateConsumerProtection Bureau(CFPU).
Customer ServiceDepartmentBanking Ombudsman
Scheme (2006).
The consumer Eye(TCEP)The Credit
Information Bureau(CIB)The Banking Mohtasib
8/10/2019 state bank pakistan
20/22
Disclosure and Transparency USA INDIA PAKISTAN
The Board ofFederal ReserveSystem
Authorized AgentReports
Service providernot only written but also guide
verballyRecovery agentengaged by bankdraft guide and
branch servicecommittee.
Time to time guideline to financialservices provider andauthorized agent.
It can take actionagainst them whose donot comply on theguideline of SBP.CPD of SBP aware themost importantdocuments whencontracting financialservices provider.
8/10/2019 state bank pakistan
21/22
Recommendation and conclusion
Federal legislation.Consumer rights commissions of Pakistan.Guideline and loan recovery procedure.
Consumer education and awareness.Focus on consumer rights .Protection of Consumer from hazards.
SBP should develop a strong consumerprotection policy.
8/10/2019 state bank pakistan
22/22
THANK YOU