Banks and non bank financial institutions (NBFIs) will now be subject to Tk5 lakh in fines if they do not update their monthly information regarding borrowers by the 15th of the subsequent month, according to the Bangladesh Bank. The 20th of the next month was the previous deadline for submitting the monthly statistics. In a circular released March 5 the central bank’s Credit Information Bureau (CIB) also stated that if the CIB does not receive accurate and satisfactory monthly loan disbursement statistics, it will take action against bank and NBFI officials. There are fines of up to Tk5 lakh for not following the aforementioned instructions. The circular states, “In order to consolidate the credit discipline of the banking sector, it is absolutely necessary to provide accurate information to the CIB.
Banks and other financial organizations are required to provide the CIB with monthly loan information from borrowers. It further states that the loan information must be corrected in the system within seven working days of uploading it to the system. A thorough justification must be given to the CIB within three days if the loan information is not updated and submitted by the deadline. The circular stated. “If the explanation is not considered satisfactory by the bureau a fine of up to Tk5 lakh can be imposed on the bank or finance company concerned and disciplinary action will be taken against the officials concerned.”
Source: The Business Standard
