For giving the Credit Information Bureau (CIB) of Bangladesh Bank inaccurate information, the bank will be fined five lakh taka. Disciplinary action will be taken even if that information is not adequately explained. Furthermore, the accountable officials will face consequences.

This directive was communicated by Bangladesh Bank on Wednesday, March 5.

According to the notification, maintaining the caliber of the credit data kept in the CIB database and keeping up-to-date data are essential for integrating the banking industry’s credit discipline. The process of storing monthly data on borrowers’ loans in the CIB report is in progress in order to make CIB operations more dynamic and efficient. By the 15th of the following month, all banks and financial institutions will be required to enter all borrower loan data into the system.

After submitting the loan information to the system, the information can be updated by completing the work of corrections, subtractions or additions, if applicable, within 7 working days. If the information fails to be updated in the system by the stipulated date, the CIB will be informed within three days through a detailed explanation letter along with the reason for the failure. If the explanation is not considered satisfactory by the bureau, a maximum fine of up to five lakh taka will be imposed on the concerned bank or financial institution. Disciplinary action can be taken against the concerned officials.

It also states that the amount of the fine imposed within the stipulated time will be deducted from the accounts of the concerned bank and financial institution maintained at Bangladesh Bank Motijheel office. If the explanation for the failure to provide accurate information in the CIB database is not considered satisfactory by the bureau, necessary disciplinary action can be taken against the responsible officials.

The notification states that integrating the banking industry’s credit discipline requires maintaining the quality of the credit data stored in the CIB database and keeping data current. In an effort to make CIB operations more dynamic and effective, monthly data on borrowers’ loans is being stored in the CIB report. All banks and financial institutions must enter all borrower loan data into the system by the 15th of the subsequent month.