The Bangladesh Bank has issued a comprehensive set of guidelines aimed at regulating the licensing, operation, and oversight of credit bureaus in the country.
These guidelines are designed to enhance the efficiency and reliability of credit information systems, thereby bolstering the overall financial stability of the nation.
In this regard the central banks payment system department on Wednesday has issued the circular in details.
The guidelines emphasize the crucial role of credit bureaus in providing timely and accurate credit information, which is essential for financial institutions to make informed lending decisions and reduce credit risks.
To ensure only capable and reliable entities operate in this sector, the guidelines outline specific criteria and procedures for obtaining a license to run a credit bureau.
Credit bureaus are mandated to adhere to high operational standards, including maintaining the confidentiality and accuracy of credit data, implementing robust data security measures, and ensuring the timely updating of credit information.
The Bangladesh Bank will exercise rigorous oversight over the operations of credit bureaus, which includes regular audits, compliance checks, and the imposition of penalties for any violations of the guidelines.
Consumer protection is a key focus of the new regulatory framework. Credit bureaus are required to ensure that individuals have the right to access their credit information and can dispute any inaccuracies.
By aligning with international best practices, the guidelines ensure that the credit information system in Bangladesh meets global standards, enhancing the credibility and reliability of the countrys financial sector.
Financial institutions and credit bureaus are given specific timelines to comply with the new guidelines. Bangladesh Bank will provide the necessary support and resources to facilitate a smooth transition to the new regulatory framework.
