Bank Al­falah fails to sign con­tract with EOBI for pen­sion dis­burse­ment

The Pak Banker - - FRONT PAGE -

Bu­reau­cratic hur­dles and le­niency caused three months de­lay in sign­ing a pro­ject by EOBI with Bank Al­falah for the dis­burse­ments of the pay­ment which ul­ti­mately cost old-aged pen­sion­ers ev­ery month.

Source in the EOBI said of­fi­cials are not tak­ing is­sue on pri­or­ity ba­sis de­spite the fact the dis­burse­ment of the pen­sion to se­nior cit­i­zens is their manda­tory obli­ga­tion. Pen­sion­ers have been fac­ing prob­lems in get­ting their pen­sion be­cause the ex­ist­ing ser­vices be­ing pro­vided by Tameer Mi­cro­fi­nance Bank is not sat­is­fac­tory with lots of com­plaints by the cus­tomers.

Six months ago, the man­age­ment of EOBI de­cided to give a con­tract to a com­pe­tent bank for pen­sion dis­burse­ment. It was floated RFI which was won by Bank Al­falah suc­cess­fully to pro­vide bank­ing ser­vices to EOBI 0.5 mil­lion pen­sion­ers. EOBI signed a gen­eral agree­ment with Bank Al­falah how­ever the top level meet­ing and agree­ment along with sign­ing cer­e­mony is left to seal the deal, which caused un­nec­es­sary de­lay in the process, sources added. The pro­ject was to be signed be­tween the two com­pa­nies in com­ing weeks which will fur­ther take months com­plete though the dead­line is June 2015 and the whole process has al­ready taken one year of the hec­tic process.

Ac­cord­ing to the con­tract, Bank Al­falah will is­sue ATM cards and open ba­sic bank­ing ac­counts of the pen­sion­ers in its des­ig­nated branches to fa­cil­i­tate ben­e­fi­cia­ries in draw­ing their pen­sions.

Bank Al­falah is one of the spe­cial­ist com­mer­cial bank with diver­si­fied ex­per­tise of car­ry­ing out mass pay­ment dis­burse­ment. It has been pro­vid­ing ser­vices to thou­sands of ben­e­fi­cia­ries of Be­nazir In­come Sup­port Fund since 2010. It also con­ducted ser­vices to mass pay­ment dis­burse­ment to af­fectees of flood in 2012 and 2012 un­der the pro­ject of Citizen's Dam­age Com­pen­sa­tion and Watan Card.

EOBI has reg­is­tered 0.503 mil­lion across the coun­try. Among them 0.37 mil­lion draw pen­sions as old-age ben­e­fi­cia­ries, 0.156 as sur­vivals (rel­a­tives of de­ceased em­ploy­ees) and 80 thou­sands are those in­di­vid­u­als who got in­jured at work.

The min­i­mum pen­sion of a ben­e­fi­ciary is set at Rs 5,250 whereas it varies at max­i­mum level depend­ing on the con­tri­bu­tion of the em­ploy­ees and em­ploy­ers which usu­ally high at big cor­po­ra­tions.

The ac­cess of the EOBI ac­counts is lu­cra­tive for a bank­ing com­pany to get good ac­count of a client along with ser­vice charges. Be­sides, it en­hances the scope of busi­ness of the com­pany through of­fer­ing var­i­ous prod­ucts to a big cus­tomers' base in ac­cor­dance with their needs.

Bank Al­falah is likely to ex­e­cute pen­sion dis­burse­ment ser­vice through branches net­work of con­ven­tional, Is­lamic and branch­less bank­ing.

The bank part­nered with its sis­ter or­ga­ni­za­tion Warid LTE with its branch­less bank­ing Mo­bile Paisa hav­ing re­tail out­lets of more than 2000 places. Bank Al­falah is spread­ing its wings in diver­si­fied sec­tors from agri­cul­ture to SMEs, from Is­lamic to Branch­less bank­ing. It con­tained the largest cus­tomers' base us­ing credit card in Pak­istan.

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