KARACHI, Sept 6: The State Bank has asked all banks and other financial institutions to submit to it online the monthly credit data of their borrowers of half a million rupees or more by 10th of the next month.

In a circular (BSD 8) issued to all banks/development finance institutions and non-bank finance companies the central bank said the revised timeline would be applicable for submission of data for the month ending September 30, 2003. That is by October 10 all banks and other financial institutions would submit to SBP online the credit data of their borrowers of Rs500,000 or more.

Earlier the banks were supposed to provide this data known in the banking circles as CIB data or data compiled by the credit information bureau of SBP within 15 days from the close of each calendar month.

“With the introduction of online facility for submission of CIB data and in order to provide latest CIB position to banks/ DFIs/NBFCs it has been decided to reduce the time lag” from 15 to 10 days, says the circular.

It further says that banks/DFIs/NBFCs “shall invariably report in writing to CIB the subsequent clearance of overdue/defaults within three working days from the date of such repayment/ settlement.” The central bank has issued this instruction in the wake of growing complaints and its own observation that banks/ DFIs/NBFCs “do not intimate the subsequent repayment/settlement of overdue/defaults to CIB which causes inconvenience to the borrowers and adversely affect their reputation.”

In order to facilitate the borrowers further “it has been decided to reflect the detail of repayment/settlement of overdue/defaults made subsequent to the reporting date in the CIB report.”

“In order to make the above arrangements effective banks/ DFIs/NBFCs are advised to ensure confirmation within three working days of the borrowers repayment status on receipt of a query from the State Bank and subsequently ensure reporting of the updated and accurate data in the relevant month’s CIB data.”

“Any mis-reporting shall attract penal action under the relevant provisions of the Banking Companies Ordinance 1962,” warns the circular.