Changes in loan defaulter reporting not linked to election: Cenbank

The recent changes in the procedures for updating information of loan defaulters by the Credit Information Bureau (CIB) have no connection to the upcoming national elections, the Bangladesh Bank said on Wednesday (11 October).

"These changes are a part of the routine activities of the Bangladesh Bank and constitute an ongoing process," said Mezbaul Haque, spokesperson for the central bank, during a press conference at its headquarters in the capital.

He clarified that the news circulating about changing the CIB information at the branch level of banks is not accurate.

"Previously, it took 15 to 30 days to update the CIB report in case of any amendments. Even for corrections in a customer's national identity card information, the central bank had to make the changes. However, with the new decision, officers can now update this information at the branch level," he added.

In response to a question about whether someone could try to manipulate the CIB report by providing false information, he stated, "If incorrect information is provided, the software will not support it.

"We are moving towards digital banking, so it's essential that all our systems become digital. In the future, to verify a customer's comprehensive information, having sufficient online data is crucial. Therefore, the new rule was introduced on 17 September to enhance the activity of the CIB system."

At that time, Debdulal Roy, executive director of the central bank's ICT Department, stated that the changes made in the collection of reports related to CIB would not create any confusion. Instead, he mentioned that the data updating process would become easier and faster.

He explained that the banks themselves update the customer's CIB information. Previously, this access was limited to the head office level, but now branch-level officials will also have access.

The executive director said the CIB information will only change if the information is updated at the branch level. Here's how it works: the branch inputs the information and sends a request to the head office. The head office then verifies this information and requires approval from another officer. Therefore, the notion that anyone can change CIB information is not correct.

A senior central bank official said this new rule will facilitate the quick updating of customer information. Previously, at the bank level, if a customer's information was changed, it would take three days, leading to many customers being listed as regular during this time despite being in default.

"With the new process, customers will no longer have this opportunity," he said, adding that this change was a requirement of the International Monetary Fund.