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Islamabad, Amidst Rising Profits, Banks Accused of Neglecting Customer Security and Fair Returns
The former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, criticized commercial banks for prioritizing profits over customer security and fair returns. Butt highlighted the growing concern over the banks’ indifference to the protection of account holders, despite recording significant profits.
According to Islamabad Chamber of Commerce and Industry, Butt emphasized the vulnerability of bank customers to fraud, pointing out the lack of urgency in upgrading security systems to safeguard against hackers. He noted that despite the banking sector’s expansion, the safety of account holders’ investments has been largely overlooked. Victims of banking fraud, as per Butt’s statement, are often ignored, and their grievances are not adequately addressed, with many banks failing to report fraud cases to relevant authorities.
The situation is exacerbated by some commercial banks’ practices of converting customer deposits from savings to current accounts without consent, aiming to increase their profits. This practice, deemed illegal and unethical, leaves customers, especially those living abroad, more susceptible to cybercrimes. Butt also highlighted the significant disparity in returns between current and non-Islamic saving accounts, underscoring the unjust financial treatment of customers.
Furthermore, Butt pointed out the impact of the current economic climate, where falling land prices and the real estate market’s collapse have led many to deposit money in banks, inadvertently increasing the opportunity for banks and cybercriminals to exploit account holders. He urged the State Bank to intervene and improve the situation to restore public confidence in the banking system.
Butt warned of the potential loss of trust in banks if these issues are not addressed, cautioning that it could severely damage the economy. He called for immediate action to ensure that banks provide adequate security and fair returns to their customers.
The post Banks Accused of Security Neglect and Unfair Practices Despite High Profits, Says ICCI President appeared first on Pakistan Business News.