In August-September, the Service for the Protection of the Rights of Consumers of Banking Services, operating under the jurisdiction of the Central Bank, conducted comprehensive control measures within commercial banks in Uzbekistan.
The primary objective was to assess the compliance of these banks with regulations governing their banking activities, particularly in their interactions with consumers at local branches. The review encompassed aspects such as payment acceptance through terminals and the provision of accurate, up-to-date information about banking services.
The findings of this inspection pointed to concerns regarding the transparency and adherence to legal obligations by commercial banks when serving their consumers. The key issues identified during the study were as follows:
1. Lack of Full Disclosure: Commercial banks were found to be deficient in fully disclosing information about loans and deposit products to consumers, as required by law. This could potentially impede consumers from making well-informed financial decisions.
2. Use of Bank Cards: Some services were observed to be provided through bank cards in a manner that raised questions about their compliance with regulatory standards.
In accordance with Article 57 of the Law on Banks and Banking Activities, the Central Bank took corrective measures against 21 commercial banks that had allowed these issues to persist. These actions included the imposition of fines on 16 commercial banks, while warnings were issued to the remaining five.
The report underlines the importance of ensuring consumer protection, stating:
"In order for consumers to make a rational decision on using banking services, commercial banks should fully disclose information about banking services to consumers and explain their conditions in detail."
It's essential to note that these actions are not isolated incidents. In 2022, a total of 26 banks faced penalties, resulting in the collection of fines totaling UZS 3.8bn ($311,184). This highlights the Central Bank's ongoing commitment to maintaining the integrity of the financial system and safeguarding the interests of consumers.
In a separate development in early October, the Central Bank suspended the deposit and credit operations of "AVO Bank," formerly known as "Uzagroexportbank." This suspension was a response to violations or irregularities within the bank's operations, with the Central Bank also imposing fines on six other commercial banks.
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