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 January 14, 2021, No. 3030-6

Date of Entry into Force

April 15, 2021

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[OKON:

1.07.00.00.00 Legislation on Finance and Credit. Banking 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 January 14, 2021, Registration No. 3030-6]

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 to 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 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 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 of the Central Bank M. NURMURATOV

Tashkent city,

December 9, 2020,

No. 26/7

APPENDIX

to the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated December 9, 2020, No. 26/7

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

1. The third paragraph of paragraph 1 shall be supplemented with the words "in the internet banking system and/or in the mobile application" after the words "on the website".

2. In [paragraph 3](/docs/3804290?ONDATE=04.10.2018 00#3804928):

the [first paragraph](/docs/3804290?ONDATE=04.10.2018 00#3804928) shall be stated in the following wording:

"3. Bank services are provided on the basis of a contract concluded between the bank and the consumer, including a contract in the form of a public offer.";

the [third paragraph](/docs/3804290?ONDATE=04.10.2018 00#3804930) shall be stated in the following wording:

"The text of contracts shall be drawn up in the state language. With the mutual agreement of the consumer and the bank, the text of the contract may also be drawn up in another language.".

3. [Paragraph 61](/docs/3804290?ONDATE=16.10.2019 00#4427441) shall be supplemented with the following paragraph:

"When bank services are provided through remote service systems, the bank must provide the consumer with the opportunity to familiarize themselves with the contract terms through this system and obtain a copy thereof before concluding the contract.".

4. [Paragraph 7](/docs/3804290?ONDATE=04.10.2018 00#3804937) shall be stated in the following wording:

"7. The bank must provide information about its financial services to consumers in the state language. Information about the bank's financial services may additionally be provided in other languages.

The text of information about bank services must be expressed in concise, simple, and clear language.".

5. The word "ten" in [paragraph 12](/docs/3804290?ONDATE=04.10.2018 00#3804956) shall be replaced with the word "five".

6. [Paragraph 121](/docs/3804290?ONDATE=16.10.2019 00#4427460) shall be supplemented with the following paragraph:

"If the contract is concluded through remote service systems, the bank must provide the consumer with the opportunity to use this contract and obtain a copy thereof through these systems on the day the contract is concluded.".

7. [Paragraph 18](/docs/3804290?ONDATE=04.10.2018 00#3804970) shall be stated in the following wording:

"18. The bank must ensure the creation and use of a personal account for the consumer on its official website, in the internet banking system, and/or in the mobile application.

The bank must provide the consumer with the opportunity to use in their personal account:

information on the credit contract concluded with the consumer and amendments thereto, as well as information specified in paragraph 9 of this Regulation;

information on the deposit (deposit) contract concluded with the consumer and amendments thereto, the deposit balance, and information regarding deposit income and expense operations.".

8. In [paragraph 23](/docs/3804290?ONDATE=04.10.2018 00#3804980):

the [fourth paragraph](/docs/3804290?ONDATE=04.10.2018 00#3804985) shall be stated in the following wording:

"the procedure, terms, and cost of providing bank services to consumers, including the text of model contracts for bank services (only on the official website);";

it shall be supplemented with the following sixth paragraph:

"exchange rates for the sale and purchase of foreign currencies, exchange rates for foreign currency exchange, as well as the amounts of intermediary fees charged for currency exchange operations (if any);";

9. Paragraphs 242 — 245 of the following content shall be added:

"242. A bank deposit (deposit) contract must be concluded in written form. In this case, if the contract is concluded using remote service systems, it may also be formalized through acceptance of an offer in the manner established by legislation.

243. A bank deposit (deposit) contract between the bank and depositors is considered concluded from the day the deposit amount is accepted into the bank's cash or the corresponding funds are received in non-cash form into the deposit account.

244. The bank must confirm to the depositor in written form or electronically through remote service systems the relevant document regarding the acceptance of their funds into the deposit.

245. If citizens' deposits in the bank are guaranteed in accordance with the Law of the Republic of Uzbekistan "On Guarantees for the Protection of Citizens' Deposits in Banks", the bank deposit (deposit) contract must contain information about this.".

246. [Paragraph 26](/docs/3804290?ONDATE=04.10.2018 00#3804996) shall be stated in the following wording:

"26. Before concluding a bank deposit (deposit) contract, the bank provides the consumer orally with the following information:

type of deposit (deposit) (demand, term, savings);

term of the deposit (deposit) (if available);

minimum amount of the deposit (deposit);

bonus rates;

terms for extending the deposit (deposit) term without concluding an additional agreement;

possibility of replenishing the deposit (deposit);

terms for full or partial early withdrawal of the deposit (deposit);

interest rates;

procedure for paying the principal amount and interest income on the deposit (deposit);

possibility of adding additional funds to the deposit (deposit);

how the deposit of cash into the deposit (deposit) is formalized;

the condition that the bank deposit (deposit) contract must be formalized before depositing cash into the bank's cash or transferring funds to the bank's account for the purpose of depositing;

rights and obligations of the bank and the consumer envisaged by the bank deposit (deposit) contract, and their liability.

If the bank deposit (deposit) contract is concluded through a remote service system, the bank must provide the consumer with the opportunity to familiarize themselves with the information specified in this paragraph through this system before concluding the contract.".

11. [Paragraph 351](/docs/3804290?ONDATE=25.09.2019 00#4535962) shall be stated in the following wording:

"351. It is prohibited for commercial banks to:

calculate interest, charge commissions and penalties (fines, late fees), and apply other liability measures in amounts exceeding half of the annual loan amount for microloan contracts;

charge fees for reviewing credit applications, servicing loan accounts, and disbursing loans, as well as charge penalties (fines, late fees) for early repayment of loans (microloans) by individuals and small business entities;

issue loans (debts) in foreign currency to individuals and account for their obligations in foreign currency for loans (debts);

provide new microfinance services to individuals if there is an outstanding overdue debt on previously obtained loans (debts).".

12. Paragraph 352 of the following content shall be added:

"352. Failures in the bank's software must not lead to an increase in consumers' obligations or damage to their legitimate interests.".

13. The third sentence of the [second paragraph](/docs/3804290?ONDATE=04.10.2018 00#3805056) of paragraph 37 shall be stated in the following wording:

"Sending notifications and making oral reminders via telephone tools is not allowed between 20:00 and 8:00 local time.".

14. [Paragraph 373](/docs/3804290?ONDATE=22.11.2019 00#4605510) shall be stated in the following wording:

"373. The condition that the consequences arising from the borrower's choice to take a loan in foreign currency and the resulting increase in the debt burden in national currency due to changes in the foreign exchange rate shall be borne by the borrower must be reflected in the credit contract concluded between the bank and the borrower.".

15. Paragraph 375 of the following content shall be added:

"375. The bank must reflect in the pledge contract concluded for the loan the borrower's right to reduce the pledge security amount by more than the unpaid portion of the loan, based on the bank's claims arising from the pledge security, as well as the procedure and methods for reducing the pledge security.".

16. Paragraph 384 of the following content shall be added:

"384. When providing services for making payments through a terminal or cashing funds from a bank card at its branch or structural unit, the bank must provide the person presenting the bank card (the bank cardholder or the person authorized to use the card) with the opportunity to independently enter the 'PIN-code' of this card.".

17. Paragraph 401 of the following content shall be added:

"401. In conducting relations with consumers, the bank must introduce customer service standards that specify clear procedures and guidelines, including rules of conduct and professional ethics for bank employees during interactions with clients, identifying needs, offering products/services, forming offers, handling complaints, and concluding interactions.".

18. [Paragraph 44](/docs/3804290?ONDATE=04.10.2018 00#3805077) shall be stated in the following wording:

"44. The demand letter sent by the bank must contain the following information:

the bank's name and sufficient information for its identification;

the amount and composition of the consumer's current debt on the date the demand letter is formalized;

the method(s) of debt repayment;

the deadline by which the consumer must fulfill their obligations (which must not be less than ten days);

the consequences of the consumer's failure to fulfill their obligations by the deadline specified in the demand letter;

methods of pre-litigation dispute resolution.".

19. The words "out-of-court settlement" in [paragraph 45](/docs/3804290?ONDATE=04.10.2018 00#3805087) shall be replaced with the words "pre-litigation settlement".

20. [Paragraph 46](/docs/3804290?ONDATE=04.10.2018 00#3805091) shall be stated in the following wording:

"46. If the consumer fails to adequately fulfill the claims specified in the demand letter within the deadline established for pre-litigation dispute resolution, the bank has the right to file a lawsuit in court.".

21. The [name](/docs/3804290?ONDATE=04.10.2018 00#3805124) of Chapter 6 shall be stated in the following wording:

"Final Provisions".

22. Paragraph 60 of the following content shall be added:

"60. The bank is liable for damages caused to the depositor as a result of improper actions of its employee in the performance of their official duties.".

(National Database of Legislative Acts, January 14, 2021, 10/21/3030-6/0039)