Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr Shahid Rasheed Butt, on Tuesday, said banks are making profits indiscriminately but have become indifferent to the protection and other problems of the account holders. He said those who have put their money in banks are often victims of fraud, but the banks seem unconcerned as they are fully focused on profits. 

Shahid Rasheed Butt said in a statement issued here today that banks are expanding their business, but they are not bothered to upgrade their security system, and the masses are paying the price. The victims of fraud are not being treated properly, but they are being ignored, he said, adding that many banks do not even complain about fraud to the relevant authorities. The business leader said that the State Bank should take notice of this situation and improve matters. Otherwise, public confidence will be affected. 

He said that many commercial banks are profiting but are not upgrading their security systems, so account holders are at the mercy of hackers and often get hacked. Due to sky-high interest rates, bank deposits have reached Rs 25.6 trillion in FY 2023, but the people need to get the profits they deserve. 

Moreover, in a rising interest rate environment, some commercial banks have silently converted some customers’ deposits from ‘savings’ to ‘current’ to increase their profits, which is illegal and unethical. He said there is a huge cost difference between the two types of accounts. There is zero return on the current deposits. At the same time, on non-Islamic saving accounts, banks are regulated to pay 1.5 per cent lower than the interest rates, which is 18.5 per cent at the prevailing policy rate.

Shahid Rasheed Butt noted that after stabilization in the foreign exchange market and government actions, obtaining dollars is difficult, easier and more profitable than in the past.

Due to falling land prices and the real estate market’s collapse, many people are depositing their money in banks for profit, which has become an opportunity for banks and cyber criminals. 

He said that account holders living abroad are also becoming victims of cyber criminals while banks are not doing anything about it. 

He warned that the situation should be noticed; otherwise, people will lose trust in banks, greatly harming the economy.