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 26, 2023, Registration No. 3030-8

Date of Entry into Force

April 28, 2023

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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]
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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 26, 2023, Registration No. 3030-8]

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 to the Regulation 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) (National Database of Legislative Acts, July 3, 2018, No. 10/18/3030/1440-1440), shall be made in accordance with the Appendix.

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

Chairman M. NURMURATOV

Tashkent city,

January 4, 2023,

No. 30/10

APPENDIX

To Resolution No. 30/10 of the Board of the Central Bank of the Republic of Uzbekistan dated January 4, 2023

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

The Preamble shall be stated in the following wording:

"This Regulation establishes the minimum requirements for the activities of commercial banks (hereinafter referred to as the Bank in the text) in relations with bank service consumers (hereinafter referred to as Consumers in the text) for the purpose of protecting the rights and interests of bank service consumers."

Paragraph 27 shall be stated in the following wording:

"27. Before concluding a credit agreement, the Bank provides the Consumer with the following information:

requirements imposed on the borrower for obtaining a credit;

type of credit;

maximum amount and currency of the credit, including warnings about possible risks associated with foreign currency (risks arising from changes in foreign exchange rates resulting in financial losses);

term of use of the credit;

annual nominal value of the interest rate, and in case of variable interest rates, the procedure for determining them, as well as the full cost of the credit as of the date of the Consumer's application. In this regard, the calculation of the full cost of credits (microcredits) allocated to physical persons is carried out in accordance with the procedure set forth in Appendix 1 to this Regulation;

date on which interest calculation for the use of credit begins, or the procedure for determining it;

detailed list and amounts of brokerage fees, tariffs, and other payments related to obtaining a credit and servicing it;

liability and risks of the Consumer in case of non-performance of obligations under the credit agreement;

methods of granting credit, including through remote service systems;

periodicity of payments by the borrower when repaying the credit, paying interest on the credit, and making other payments;

liability of the pledgor, guarantor (surety), and other persons who are parties to the credit agreement;

information on the rights and obligations of the Bank and the Consumer, including the Consumer's rights in the process of collecting overdue debt, as well as information on the liability of the parties provided for in the contract for the provision of bank services;

terms for reviewing documents submitted by the Consumer for obtaining a credit, granting the credit, and using it;

complete list of documents required for obtaining a credit;

types of security for the performance of obligations under the contract for granting credit;

types of collateral accepted as security for the credit (if collateral is required);

procedure for early repayment of the credit;

procedure for changing credit terms, including the procedure for reviewing repayment terms and the procedure for attaching enforcement to collateral property."

Paragraph 27-1 shall be added with the following content:

"27-1. The Bank must explain to third parties who pledge their property as security for obligations to the Bank or act as guarantors about the risks that may arise in the future, in particular, that in case of untimely payment of the credit and interest calculated on it by the borrower, enforcement may be levied on the collateral property of the third party or the guarantor's property in accordance with legislation and the contract to cover the debts arising from the credit, in the order of solidary or subsidiary liability."

In Paragraph 33:

a third sub-item shall be added with the following content:

"offering subordinated debt to consumers as a deposit (deposit) or a debt equalized to a deposit (deposit);";

the third and fourth sub-items shall be considered the fourth and fifth sub-items, respectively.

Paragraph 36-12 shall be added with the following content:

"36-12. Banks:

must review documents submitted by the Consumer for obtaining a credit within the timeframe established by the credit issuance rules and make a decision on granting a credit or substantiated refusal to grant a credit;

must notify the Consumer in writing without delay, but no later than three days from the date of making such a decision, about the decision made on granting a credit or substantiated refusal to grant a credit.

In this regard, if the notification is sent to the Consumer via email, SMS message, or remote service systems, the Bank must ensure the opportunity to provide the notification in written paper form to the Consumer upon their request."

In the first sub-item of Paragraph 37-4, the words "by the borrower under the contract" shall be replaced with the words "under the credit (loan) agreement".

From Paragraph 41, the words "including attaching the repayment schedule" shall be deleted.

In Paragraph 43, the word "delivers" shall be replaced with the word "sends".

(, January 27, 2023, No. 10/23/3030-8/0057-8/0057-1)