KARACHI: The State Bank has formulated product disclosure requirements (PDRs) for all types of personal, housing and auto finance products which will help consumers to make informed decisions and enhance their confidence in financial products.
The SBP said on Monday that in the wake of growing diversity and complexity in financial products, making an informed decision is one of the challenges for the financial consumers.
Banks and micro finance banks (MFBs) are required to invariably provide an upfront ‘product key fact statement’ (PKFS) to their prospective customers from Jan 1, 2017. The State Bank said the move is aimed at enhancing the existing level of transparency and disclosure in the financial products as a part of pre-disbursement procedure. Banks and MFBs may, however, add any further information in the PKFS as deemed necessary.
Moreover, banks and MFBs will retain a duplicate copy of PKFS duly signed by their customers and the authorised officer of the bank as per their record retention policy.
Non-compliance of the product disclosure requirements will attract punitive action,” said the SBP.