KARACHI, March 2: The mounting complaints against the dubious transactions of the automated teller machines (ATMs) have finally compelled the State Bank to intervene to decide the fate of millions of rupees of customers.
Banking sources said that the central bank had recently sent its inspection team to MCB Bank, which has the largest network of ATMs across the country, to find out problems with its machines.
The ATMs have been reporting transactions of millions of rupees but do not deliver cash to the customers. The problems arise when customers of one switch want to draw cash from other switch. The ATM, in such cases, shows cash transactions but it does not happen.
All banks have been shifted to two switches, 1-Net and m-Net. MCB Bank is linked with m-Net, which has the largest network. Since the shifting of banks on two switches a year ago, the problem started creating painful transactions for the customers.
The customers who do not get cash and but find deduction from their accounts, have to take long time to recover their money and it takes three to six months with complicated procedures.
“At least Rs12 million are stuck with this kind of transactions,” said a highly placed banker.
“I lost my salary as I tried to get cash from 1-Net while my account is with MCB Bank. It took four months to recover my money but I had to face immense difficulties despite a lot of connections in banking industry I used to accelerate the recovery process,” said Siddiqui, an employee of a private firm that pays salaries through MCB Bank.
In such cases, customers have to show ATM transaction slip, the previous slip, date and timing of transactions, total amount in the accounts at the time of transactions and many other procedures to recover money. They also have to approach ABN Amro Bank, which is holding the 1-Net, to get their stuck up amounts recovered.
Customers said that they didn’t get any support from their banks in all these painful and tiresome activities for the recovery of stuck amounts.
“I don’t trust the technologies introduced in the banking industry. I used to get cash through a cheque despite having an ATM card,” said Sajid, a pharmaceutical salesman. He suggested that the ATM card holders must have a list of banks on their switch and should avoid withdrawing cash from other’s switch.
The SBP has been a great advocate of introducing technology in the banking sector which proved successful in all developed and developing countries, but it has created a mess in Pakistan.
There has been a general complain that the high-tech ATMs used to remain out of order especially when customers are in dire need of cash. The worst situation was witnessed during Ramadan when customers found most of the machines out of order or out of cash.
The dependence on ATMs has increased substantially in the last two years as the technology promises to provide cash availability for 24 hours.
“The banks have yet not developed the expertise on the technology which is the real problem,” said a banker. He was of the view that it was too early to shift all banks on two switches when they were incapable.
Sources said that the SBP findings would help to resolve the problems of dubious transactions and enable the customers to get back their stuck up money.
“If the procedure is made simple to recover the stuck up money, the technology would facilitate customers and complains will be marginally reduced,” said the banker.
Analysts and bankers suggested that the SBP should also send its inspection team to see the problems under 1-Net.
