Amendments and additions have been made to the regulation on the minimum requirements for the activities of commercial banks in the implementation of relationships with consumers of banking services

Tashkent, Uzbekistan (UzDaily.com) -- The Ministry of Justice registered the Decree No. 3030-8 from 26 January 2023 on introducing amendments and additions to the regulation on the minimum requirements for the activities of commercial banks in the implementation of relations with consumers of banking services.

In order to ensure transparency in the use of banking services and to prevent various misunderstandings that may arise between the bank and consumers when using financial services, some changes and additions have been made to this document.

In particular, the information provided to consumers on the conditions associated with the use of credit services prior to the conclusion of a credit agreement was expanded. This is necessary so that consumers can make the right choice regarding the use of various loan products, as well as have complete information about the loan.

Also, in order to prevent various disputes between third parties who have pledged their property or become guarantors, a commercial bank and a debtor, as well as to ensure that third parties understand the fact that they assume financial obligations under a loan, a pledge or surety agreement, made the obligation of the bank to explain to potential third parties about the risks they may face in the future.

At the same time, the practice of providing subordinated debt to consumers as a deposit or debt equivalent to a deposit is prohibited due to the fact that consumers are often confused in distinguishing between subordinated debt and deposit services.

In order to ensure the transparency of the process of reviewing loan documents by banks, it was established that banks must inform the consumer about the decision to issue a loan or a justified refusal to issue a loan no later than three days after the date of such a decision.

Changes and additions to the Regulations come into force on 28 April 2023.