Getting a financial card not a must
EDITOR—The Bank of Uganda (BOU) wishes to respond to Lydia Mirembe’s letter published on April 24. She complained about Stanbic Bank Uganda claiming that BOU issued an order that every account holder must get a Financial Card (FC) under the Credit Reference Bureau Services (CRB) arrangement.
EDITOR—The Bank of Uganda (BOU) wishes to respond to Lydia Mirembe’s letter published on April 24. She complained about Stanbic Bank Uganda claiming that BOU issued an order that every account holder must get a Financial Card (FC) under the Credit Reference Bureau Services (CRB) arrangement.
BOU would like to correct the unfortunate impression which the letter might have created and to clarify some basic facts about CRBS and FC. What is a CRB? A CRB collects information on your loan repayment history from participating institutions like commercial banks, credit institutions and microfinance deposit-taking Institutions. It acts as a giant ‘storage centre’ for everyone’s loan information. This information is made available in the form of a credit report, which can be used by your loan provider to quickly decide on your next loan request.
What is a Financial Card?
It is a card used to identify a borrower
It holds a borrower’s name, photograph, fingerprints and a unique number
Every borrower will get a financial card
The card will be required whenever the borrower has any contact with the CRB or when a participating institution/loan provider needs information about you.
What is the process of getting a Financial Card?
You will be registered on the CRB when you apply for a loan in any branch of a participating institution
Your photograph will be taken
Your fingerprints will be registered
Your information will be recorded
You will be advised by your participating institution as to when to collect the card.
We would like make the following issues very clear:
BOU has continuously conducted public education programmes, printed and distributed posters, brochures, placed radio announcements, jingos and quizzes and regular participation in exhibitions.
The FC is NOT compulsory but a requirement to borrowers and potential borrowers.
Acquiring an FC does not compel anyone to get a loan, but may speed up the process of getting it.
The FC is subsidised and will cost sh7,000 for a borrower and sh13,000 for a non-borrower customer of any financial institution. The BOU wishes to emphasise that acquiring an FC is NOT compulsory for every account holder but it is a requirement for those who wish to access credit. The BOU is committed to achieving its mission of fostering price stability and a sound financial system.
Juma Yusuf Walusimbi for Bank of Uganda
Management
BOU would like to correct the unfortunate impression which the letter might have created and to clarify some basic facts about CRBS and FC. What is a CRB? A CRB collects information on your loan repayment history from participating institutions like commercial banks, credit institutions and microfinance deposit-taking Institutions. It acts as a giant ‘storage centre’ for everyone’s loan information. This information is made available in the form of a credit report, which can be used by your loan provider to quickly decide on your next loan request.
What is a Financial Card?
It is a card used to identify a borrower
It holds a borrower’s name, photograph, fingerprints and a unique number
Every borrower will get a financial card
The card will be required whenever the borrower has any contact with the CRB or when a participating institution/loan provider needs information about you.
What is the process of getting a Financial Card?
You will be registered on the CRB when you apply for a loan in any branch of a participating institution
Your photograph will be taken
Your fingerprints will be registered
Your information will be recorded
You will be advised by your participating institution as to when to collect the card.
We would like make the following issues very clear:
BOU has continuously conducted public education programmes, printed and distributed posters, brochures, placed radio announcements, jingos and quizzes and regular participation in exhibitions.
The FC is NOT compulsory but a requirement to borrowers and potential borrowers.
Acquiring an FC does not compel anyone to get a loan, but may speed up the process of getting it.
The FC is subsidised and will cost sh7,000 for a borrower and sh13,000 for a non-borrower customer of any financial institution. The BOU wishes to emphasise that acquiring an FC is NOT compulsory for every account holder but it is a requirement for those who wish to access credit. The BOU is committed to achieving its mission of fostering price stability and a sound financial system.
Juma Yusuf Walusimbi for Bank of Uganda
Management