Institute of Bankers Pakistan Examinees: modern commercial banking

Tuesday, March 20, 2012

Banking Practices in Pakistan - Vernacular Form & Urdu Signatures

There are various practices and rules in banks which do have some reason behind, but still they seems so confusing. Today while a client was requesting to open his account in bank the account opening officer told him to use 'English' signatures as the one in Urdu are considered risky and requires a vernacular form. Similar thing happens when an illiterate person requests to open an account. The interesting thing is that Urdu is our National Language and about 70% of population uses and prefer Urdu language. When they try to do sign in their national language, banks ask them to do signatures in English ! And another more interesting thing is that if they do use their Urdu signatures they are not only discouraged but they have to sign an undertaking in shape of vernacular form which is in English and in most of the cases the person signing it doesn't know what's written on it. Although bank officials have to translate it for them and read all terms and conditions for them in their native language, but most of the times this doesn't happen because if they do so, the person would not dare to open account with conditions where bank is exempted from all the responsibilities; in case there is a misuse of signatures.In my view this practice should be reviewed in order to facilitate and protect the client! We should not discourage use of their native language as they would be more comfortable in that.