Loan-related misinformation: BB announces up to Tk5 lakh fine for officials
The Bangladesh Bank on Thursday announced a fine of Tk50,000 to Tk5,000,00 for any officials of a bank or non-bank financial institution, if they send false or incorrect information about outstanding loans to the central bank.
Concealing any information regarding the loan will have the same consequences, according to a circular issued by the Credit Information Bureau (CIB) of the central bank on Thursday.
Previously, only the concerned bank and financial institution had to pay fines in such cases.
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"Sometimes we have to suffer a lot due to incorrect or false information provided by the banks. Our reports get delayed. In such cases, if we ask the bank, they often point the finger at the officials for the mistakes. Hence, the officials have also been brought under a penalty in the new circular," a senior official of the Bangladesh Bank told The Business Standard.
As per the new rules, all banks or financial institutions have to upload the information of any amount of outstanding loan status, including credit cards with positive or negative data, to the CIB online system on a monthly basis.
Besides, the loan details for each month have to be uploaded by the 20th of the following month.
According to the Bangladesh Bank circular, in case of failure to make necessary corrections in the monthly batch contribution or error file within the stipulated period, the concerned institution or the officials will be sent a notice containing the reason and the amount of fine. The same actions will be taken if a breach of confidentiality is proven.
The notice will also ask for an explanation from the concerned party as to why the fine will not be collected.
The fine will be decided considering the number of days of delay, and the nature and extent of the incorrect or false information.
The circular added that if the concerned party's explanation is not satisfactory, they will be asked to pay the fine within 7 days through bank draft or pay order.
In case of failure to oblige, the penalty amount will be deducted from the concerned bank or financial institution's account at the Bangladesh Bank Motijheel office without giving any further notice.
If any officials are fined, the concerned institution shall collect the fine from them within 30 days and inform the CIB.
