Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on September 23, 2021, registration number 3030-7

Date of Entry into Force

December 24, 2021

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[OKON:

1.07.00.00.00 Legislation on Finance and Credit. Bank Activity / 07.19.00.00 Banking System / 07.19.02.00 Commercial Banks. Private Banks. Foreign Banks]

[TSZ:

1. Finance / Banks and other credit institutions. Credits]

Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

[Registered by the Ministry of Justice of the Republic of Uzbekistan on September 23, 2021, registration number 3030-7]

In accordance with the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", the Board of the Central Bank resolves:

1. Amendments and additions shall be made to the Appendix of the [Regulation](/docs/3804290?ONDATE=04.10.2018 00#3804917) on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers, approved by Resolution No. 16/18-7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (registration number 3030, July 2, 2018) (Collection of Legislation of the Republic of Uzbekistan, 2018, No. 27, Article 553).

2. This resolution shall enter into force three months after the date of its official publication.

Chairman M. NURMURATOV

Tashkent city,

August 24, 2021,

No. 20/7

Resolution No. 20/7 of the Board of the Central Bank of the Republic of Uzbekistan dated August 24, 2021

APPENDIX

Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

1. Paragraph 181 shall be supplemented with the following content:

"181. Banks must provide the opportunity for individuals to independently calculate the full cost of loans (microloans) intended for individuals on their official websites."

2. The [fourth bullet point](/docs/3804290?ONDATE=16.10.2019 00#4427503) of paragraph 27 shall be stated in the following edition:

"the annual nominal value of the interest rate, as well as the full cost of the loan on the date of the consumer-individual's application. In this case, the calculation of the full cost of loans (microloans) issued to individuals shall be carried out in the manner prescribed by Appendix 1 to this Regulation;"

3. [Paragraph 301](/docs/3804290?ONDATE=16.10.2019 00#4427591) shall be stated in the following edition:

"301. When a consumer-individual applies to a bank for a loan or to open a deposit account (when the consumer visits the bank building), the bank shall fill out together with the consumer-individual the information sheet on the main terms of the loan in accordance with Appendix 2 to this Regulation and the information sheet on the term deposit in accordance with Appendix 3 to this Regulation (hereinafter in the text referred to as the Information Sheet) and present it to the consumer-individual.

The bank must provide the opportunity to independently fill out and print the interactive form of the Information Sheet for deposit and loan products offered to consumers on its official website.

The Information Sheet is provided to the consumer-individual free of charge and does not constitute an application for obtaining a loan or opening a deposit account.

The requirements of this paragraph also apply to microcredit relations."

4. In [Paragraph 366](/docs/3804290?ONDATE=21.02.2020 00#4749289):

the word "must" shall be deleted from the [third bullet point](/docs/3804290?ONDATE=21.02.2020 00#4749292);

the fourth bullet point shall be supplemented with the following content:

"it is mandatory to indicate the amount of the full cost of the loan in the loan contract concluded with consumer-individuals. In this case, the amount of the full cost of the loan shall be written in numbers and words in the upper right corner of the first page of the contract, inside a square frame, in black color on a white background, using a font size of no less than 14 points of 'Times New Roman' or a similar font."

5. The [Appendix](/docs/3804290?ONDATE=16.10.2019 00#4427721) shall be stated in the edition in accordance with Appendix 1 to these amendments and additions.

6. Appendices 2 and 3 shall be supplemented with Appendices 2 and 3 in the edition in accordance with Appendix 2 and Appendix 3 to these amendments and additions.

Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 1

Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 1

Calculation of the Full Cost of a Loan (Microloan)

PROCEDURE

This Procedure establishes the procedure for calculating the full cost of loans (microloans) issued to individuals — consumers (hereinafter in the text referred to as "borrowers").

1. The following main concepts are used in this Procedure:

full cost of a loan (microloan) (hereinafter in the text referred to as "FCML") — the fair, annual effective interest rate of payments associated with obtaining a loan (microloan);

loan (microloan) contract — an agreement between the bank and the borrower regarding the provision of funds by the bank to the borrower on the basis of repayability, term, and returnability.

2. The following payments of the borrower are taken into account when calculating the FCML:

a) payments on the main debt and interest;

b) payments made for the benefit of the bank, if such payments are included in the borrower's obligations in accordance with the terms of the loan (microloan) contract and/or if the issuance of the loan (microloan) is contingent upon the making of such payments;

c) payments made for the benefit of third parties, if such payments are included in the borrower's obligations in accordance with the terms of the loan (microloan) contract, including:

payments made for the benefit of an insurance organization, if the bank is the beneficiary in the event of an insured event under the insurance contract;

payments made by the borrower for the benefit of an insurance organization for insuring the collateral subject to pledge, which is accepted as security for the borrower's obligations and remains in the possession of the pledgor, under the pledge contract;

payments made by the borrower to the guarantor (surety) for obtaining a guarantee (suretyship), as well as payments made to an appraisal organization for appraising property being pledged;

payments made for the benefit of organizations (intermediaries) providing services to the bank in attracting customers, checking documents submitted by them for obtaining a loan (microloan), submitting these documents to the bank, and accepting payments and money transfers from bank customers for repayment of loans (microloans).

The calculation of the FCML indicator by the bank shall be carried out taking into account all payments provided for in this paragraph until the expiration of the loan (microloan) contract term.

3. The following are not included in the FCML calculation:

a) payments made by the borrower for the benefit of third parties, except for the payments specified in paragraph 2 of this Procedure;

b) payments that the borrower must make, arising not from the terms of the loan (microloan) contract, but from legislative requirements;

c) payments associated with the borrower's failure to perform or improper performance of the terms of the loan (microloan) contract, including penalties and/or other payments provided for in the contract;

d) payments on loans (microloans) issued using bank plastic cards, specifically:

commissions related to the issuance of a bank card;

commissions related to the maintenance of a bank card;

commissions collected when loan payments are made through the mobile application of the bank and/or payment organization, ATMs, and info-kiosks;

commissions paid for obtaining loan (microloan) amounts in cash using ATMs.

4. Banks must calculate the FCML in the following cases:

a) when a loan (microloan) contract is concluded with borrowers;

b) when providing information to borrowers expressing interest in obtaining a loan (microloan) about the terms of obtaining the loan (microloan). If it is not possible to determine the amount of certain payments provided for in paragraph 2 of this Procedure at the time of providing information, the bank must apply the tariffs it knows for such types of payments and disclose the sources of such payments to borrowers expressing interest in obtaining a loan (microloan) (for example, the name of the insurance company whose tariffs are used in calculating the FCML, etc.).

5. In calculating the FCML, payments already made by the borrower on the loan (microloan) are taken into account at the time they were actually paid, and future payments are taken into account based on the payment schedule known at the date of concluding the loan (microloan) contract, according to the terms of loan (microloan) issuance known at that time.

If the insurance of the collateral subject to pledge is to be carried out after the date of concluding the loan (microloan) contract, the bank must determine the amount of the payment to be made to the insurance company by the borrower and calculate the FCML based on that amount.

6. The following conditions are taken into account when calculating the full cost of the loan:

a) if the loan (microloan) contract provides for the consumer to receive loan (microloan) funds in installments or to choose the time of obtaining the loan (microloan), the loan (microloan) amount is considered to have been fully transferred to the consumer at the time of concluding the loan (microloan) contract;

b) when providing information to borrowers expressing interest in obtaining a loan (microloan) about the terms of obtaining the loan (microloan), when calculating insurance costs included in the full cost of the loan, the highest current rates and premium amounts of insurance organizations in effect are taken. Consumers must also be informed that future changes in the rates and premium amounts of insurance organizations may affect the full cost of the loan.

7. If the interest rate on the loan (microloan) is linked to basic indicators (the Central Bank's key rate, inflation rate, etc.), the bank uses the amount of basic indicators on that day when calculating the FCML.

8. Banks calculate the FCML using software tools.

The FCML is calculated based on the following formula:

S — the amount of the loan (microloan) issued by the creditor to the debtor;

P1 — the amount of the next payment directed by the customer to repay the loan (microloan); (Pi represents the cash flows in the loan repayment schedule)

APR — the full cost of the loan (microloan) (FCML);

m — the number of payments directed by the customer to repay the loan (microloan);

(For example, if the consumer repays the loan (microloan) once a month over 3 years, m equals 36)

i — the ordinal number of the next payment directed by the customer to repay the loan (microloan);

(For example, if the consumer repays monthly according to the repayment schedule and the current payment falls in the 5th month, i equals 5)

ti — the period (in days) from the day the loan (microloan) was issued to the next payment directed by the customer for repayment.

(If the consumer is to make a payment for the 5th month of a loan (microloan) repaid monthly, t5 equals 150 days)

9. The FCML is calculated rounded to one decimal place. If the second digit after the decimal point is equal to or greater than "5", the first digit after the decimal point is increased by one unit. For example, if the FCML indicator is 18.66, rounding results in 18.7.

10. Banks provide written information to the consumer-individual upon request, including the amount of the FCML, at the time of concluding the loan (microloan) contract, specifying its absolute value, i.e., the main value of the loan (microloan), interest, and other payments, including payments made for the benefit of third parties under current tariffs, if such payments are obligations of the consumer-individual arising from the contract terms.

11. When banks announce information about loans (microloans) through mass media, they must provide information that upon application to the bank, the FCML associated with obtaining the loan (microloan) will be calculated and provided to customers."

Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 2

Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 2

Information Sheet on Main Terms of the Loan

• This sheet does not replace the loan contract or the application for obtaining a loan; rather, it helps compare lending terms of different banks and make the necessary choice.

Name of the Commercial Bank, official website, phone numbers
Section 1. Information on the Loan
1. Type of Loan
2. Purpose of the Loan
3. Amount of the Loan
4. Term of Use of the Loan
5. Interest Rate (in nominal terms) during the Term of Use of the Loan and the Amount to be Paid for this Interest																				_________________ (in percent)						___________ (in monetary terms for the full term of the loan)
6. Total Amount Payable over the Full Term of Use of the Loan ____________________ ______________________ ________________________ (Loan Amount) + (Calculated Interest) = (Total Payable Amount)
7. Grace Period of the Loan (if any)
8. Frequency of Payments (monthly, quarterly, etc.)
9. Method of Loan Repayment (annuity method (equal amounts), differentiated method)
10. One-time Payment Amount during the Payment Period: annuity method differentiated method																				______________________________ ______________________________ (maximum amount of intermediate payments)
11. Form of Loan Issuance (transfer to supplier's account, cash, transfer to bank card, etc.)
12. Additional Costs Related to the Loan, including (if such costs exist):																				__________________________ (in monetary terms for the full term of the loan, total)
Types of Bank Commissions and Fees (specified separately)																				__________________________ (in monetary terms for the full term of the loan, total)
Third-party Services (specified separately)																				__________________________ (in monetary terms for the full term of the loan, total)
13. Full Cost of the Loan (includes nominal interest rate and loan servicing costs)
14. Term for Reviewing the Application for Obtaining the Loan
Section 2. Important Terms Related to Other Financial Obligations
1. Penalty (fine, late fee) provided for in the contract for timely non-repayment of loan debt (if such a condition exists)																				_____________________________________________ (percent or fixed amount is indicated, as well as the contract terms serving as the basis for calculating the penalty (fine, late fee))
2. Increased Interest Rate Amount Payable from the Loan Amount for Timely Non-repayment of Loan Debt (if such a condition exists)																				_ _____________ (in percent)
3. Loan Security (minimum requirements for the security subject, minimum value of collateral)
Study Carefully Before Agreeing to Obtain a Loan!
You have the right to obtain full and detailed information from the bank regarding the terms and cost of the loan, the procedure for payments and calculations (interest, fines, and late fees), your rights and obligations under the loan contract, the risks and liabilities that may arise under the loan contract, as well as on other matters that are unclear to you.

If you have complaints, you may send your application (phone number is indicated) to a landline or to the address (bank's postal address is indicated) or to the email address (bank's email address is indicated). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

THE ACCURACY AND TRUTHFULNESS OF THE INFORMATION SHEET IS CONFIRMED.
________________________________________________________																					__________________
(Full Name and Position of Bank Specialist)																					(Date of Completion)

Amendments and Additions to the Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 3

Regulation on Minimum Requirements for Commercial Banks' Activities in Relations with Bank Service Consumers

APPENDIX 3

Information Sheet on Main Terms of the Term Deposit

• This sheet does not replace the deposit contract or the application for opening a deposit account; rather, it helps compare deposit terms of different banks and make the necessary choice.

Name of the Commercial Bank, official website, phone numbers
Section 1. Information on the Deposit
1. Type of Deposit
2. Purpose of the Deposit
3. Amount of the Deposit
4. Term of the Deposit
5. Interest Rate (in nominal terms) during the Term of the Deposit and the Amount to be Paid for this Interest																				_________________ (in percent)						___________ (in monetary terms for the full term of the deposit)
6. Total Amount Payable over the Full Term of the Deposit ____________________ ______________________ ________________________ (Deposit Amount) + (Calculated Interest) = (Total Payable Amount)
7. Early Withdrawal Conditions (if any)
8. Frequency of Interest Payments (monthly, quarterly, at maturity, etc.)
9. Method of Interest Payment (capitalized, paid out, etc.)
10. Form of Deposit Issuance (cash, transfer to account, etc.)
11. Additional Costs Related to the Deposit, including (if such costs exist):																				__________________________ (in monetary terms for the full term of the deposit, total)
Types of Bank Commissions and Fees (specified separately)																				__________________________ (in monetary terms for the full term of the deposit, total)
Third-party Services (specified separately)																				__________________________ (in monetary terms for the full term of the deposit, total)
12. Full Cost of the Deposit (includes nominal interest rate and deposit servicing costs)
13. Term for Reviewing the Application for Opening the Deposit
Section 2. Important Terms Related to Other Financial Obligations
1. Penalty (fine, late fee) provided for in the contract for early withdrawal of deposit funds (if such a condition exists)																				_____________________________________________ (percent or fixed amount is indicated, as well as the contract terms serving as the basis for calculating the penalty (fine, late fee))
2. Reduced Interest Rate Amount Payable from the Deposit Amount for Early Withdrawal (if such a condition exists)																				_ _____________ (in percent)
3. Deposit Security (minimum requirements for the security subject, minimum value of collateral)
Study Carefully Before Agreeing to Open a Deposit!
You have the right to obtain full and detailed information from the bank regarding the terms and cost of the deposit, the procedure for payments and calculations (interest, fines, and late fees), your rights and obligations under the deposit contract, the risks and liabilities that may arise under the deposit contract, as well as on other matters that are unclear to you.

If you have complaints, you may send your application (phone number is indicated) to a landline or to the address (bank's postal address is indicated) or to the email address (bank's email address is indicated). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

THE ACCURACY AND TRUTHFULNESS OF THE INFORMATION SHEET IS CONFIRMED.
________________________________________________________																					__________________
(Full Name and Position of Bank Specialist)																					(Date of Completion)

Name of the Commercial Bank, Official Website, Phone Numbers
Section 1. Main Terms of the Deposit
1. Deposit Name
2. Currency of the Deposit
3. Annual Interest Rate on the Deposit (if the annual interest rate is differentiated or depends on the method of deposit formalization, each is indicated separately)
4. Availability of Capitalization of Accrued Interest on the Deposit (recalculation of interest by adding accrued interest to the principal amount)
5. Term of the Deposit
6. Minimum Amount of Funds Deposited in the Deposit (if applicable)
7. Frequency of Interest Payments on the Deposit
8. Method of Deposit Formalization (online or by visiting the bank)
9. Possibility of Additional Fund Contributions
10. Auto-Renewal (unilateral extension of the deposit term by the bank upon expiration of the deposit term)
11. Other Terms
Section 2. Other Important Terms
1. Availability of the possibility of partial withdrawal of funds deposited in the deposit before the expiration of the deposit term
2. Procedure for Early Termination of the Deposit Agreement
Carefully review before agreeing to open a deposit!
You have the right to receive full and detailed information from the bank regarding the terms of the deposit, interest income on the deposit and the settlement procedure, as well as your rights and obligations, and other issues that are not clear to you.
If you have complaints, you can send your appeal (phone number is indicated) to a number phone or to the address (bank's postal address is indicated) or to the electronic address (bank's email address is indicated).
THE ACCURACY AND TRUTHFULNESS OF THE INFORMATION SHEET IS CERTIFIED.
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
_________________________________________________
(Full Name and Position of the Bank Specialist)
____________________
(Date of Completion)

• This sheet does not replace the deposit agreement or the order for receiving a deposit; rather, it helps to compare the deposit terms of different banks and make the necessary choice.*

(, 23.09.2021, No. 10/21/3030-7/0907)