In order to improve the quality of data reporting in the Credit Information Bureau (eCIB) by the Financial Institutions (FIs), the State Bank of Pakistan (SBP) has issued a list of instructions.

As per the SBP’s “Instructions for Quality Data Reporting in eCIB”, the member FIs are directed to ensure compliance with the instructions to avoid the recurrence of inaccurate data submission.

Under the instructions, the member FIs should develop well documented Standard Operating Procedures (SOPs) for the eCIB data feeding, compilation, validation, and its reporting. The SOPs should be duly approved by the President/ CEO. It should be either part of the relevant existing SOPs or an independent document.

SBP instructed FIs to adequately staff the relevant function/department responsible for data reporting by providing adequate systems and human resources commensurate with the nature, size, and complexities of their business needs and requirements. Besides, there should be proper succession planning and backup in case of any eventuality for the staff dealing with eCIB reporting, it said.

The member FIs should ensure that there should be an independent mechanism for data validation before its submission to the eCIB.

Furthermore, the FIs should ensure to establish a proper complaint and redressal mechanism for resolving the complaints related to misreporting in eCIB lodged with either bank/ SBP/ BMP or court for its timely redressal.

The contact details of officials dealing with such complaints should be made available in offices/ branches and websites of member institutions for the facilitation of their customers, instructed the central bank.

The member FIs should ensure to create awareness of the rules & regulations of eCIB related to negative reporting (reporting of overdues/latepayments, write-offs/waivers, etc.) and its implication among their customers to avoid unnecessary complaints/ legal proceedings.

The SBP said that the internal audit of the member FIs should conduct an audit of the eCIB reporting mechanism at least on a half-yearly basis and check the quality of submitted data in line with SBP’s instructions issued from time to time.

The banks/ DFIs/ MFBs should also conduct an independent assessment through an external auditor once in every three years of their eCIB data reporting mechanism in place to assess their compliance with relevant instructions issued by SBP.

In case of any discrepancy (s) identified in the reported data either by the FI itself, or its internal audit or external audit, the FIs should immediately inform BC&CPD and ensure its amendments & updations on a priority basis to avoid any legal/ regulatory implications.

The FIs should arrange and impart adequate training periodically to the relevant staff involved in the eCIB data preparation and reporting. The FIs are advised to designate a Senior Level Officer for ensuring quality data reporting in eCIB.