Senate Passes Credit Bureaus (Amendment) Bill,2016
Sumaira FH Published July 21, 2016 | 06:17 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 21th july, 2016) : The Senate on Thursday passed the Credit Bureaus (Amendment) Bill, 2016 to ensure the existing legislation in conformity with the provision of Banking Companies Ordinance and international best practices.
Minister for Law and Justices Zahid Hamid on behalf of Minister for Finance Mohammad Ishaq Dar moved the Credit Bureaus (Amendment) Bill, 2016 in the House as reported by the Standing Committee. The Statement and objects and reasons of the bill says that the purpose of Credit Bureaus (Amendment) Bill, 2016 to amendments in the Credit Bureaus Act, 2015, is to ensure that the existing legislation is in conformity with the provisions of the BCO, 1962, and international best practices.
The amendments in the Act are proposed for the following reasons: "a) The existing requirement of credit information report issued by a credit bureau to be verified by the State Bank of Pakistan (SBP), has been omitted, as the credit information report shall in most of the cases be accessed electronically by financial institutions that have data sharing arrangements with the credit bureau.
Technically, it would not be possible for SBP to verify reports being accessed by institutions across the country. In addition to this, SBP collects data under Section (25A) of Banking Companies Ordinance (BCO), 1962 for Electronic Credit Information Bureau (ECIB) database which is confidential.
If this data is used for verification of the credit reports, there would be indirect disclosure of confidential data, which is unlawful under the aforesaid Section of the BCO, 1962. The member financial institutions, who report/upload data on ECIB, are responsible for accuracy of the data.
Same practice would be followed in case of private credit bureaus, who would be subject to internal, external and SBP Audit/Inspection, to ensure compliance of rules and regulations. This is also consistent with the international best practices."
Related Topics
Recent Stories
Meeting discusses anti-dengue measures
Photo exhibition 'Imagination of My Story' held
World teams invited at International Rescue Challenge-2024
LESCO detects 78,238 power pilferers in 230 days
2600 uplift projects near completion across South Punjab
Project Director SFERP for early completion of road work before forthcoming mons ..
Spain vows to block BBVA's hostile bid for rival bank
Bank of England holds rate at 16-year high, signals looming cut
London, Frankfurt hit record highs on rate-cut hopes
Entire road work completed before forthcoming monsoon: Kanasaro
Crespo-Kewell Champions League rivalry renewed in Asian final
Bank of England holds rate at 16-year high, signals looming cut
More Stories From Pakistan
-
Meeting discusses anti-dengue measures
30 minutes ago -
Photo exhibition 'Imagination of My Story' held
30 minutes ago -
World teams invited at International Rescue Challenge-2024
30 minutes ago -
LESCO detects 78,238 power pilferers in 230 days
30 minutes ago -
CDA chairman directs timely collection of auction payments
1 hour ago -
Rs 51.72b being spent on 82 development projects in Muzaffargarh
1 hour ago
-
Attack on security institutions was condemnable act: Shafqat Shah
1 hour ago -
New era of development to begin in Mansehra in next 5 years: Advisor
1 hour ago -
Project Director SFERP for early completion of road work before forthcoming monsoon
1 hour ago -
Chairman Senate sees off first flight intended pilgrims
1 hour ago -
PPP leader condemns May 9th attack, calls it "Heinous Conspiracy to Spread Fascism"
1 hour ago -
Fire at Lahore airport disrupts flight operations
1 hour ago