NATIONAL BANK OF RWANDA

REGULATORY DIGEST ON THE REGULATION N° 56/2022 OF 27/10/2022 ON FINANCIAL SERVICE CONSUMER’S INTERNAL COMPLAINTS HANDLING

Background

Consumer by definition include us all. They are the largest economic group in the economy, affecting and affected by every public and private economic decisions. Two thirds of all spending in the economy is by consumers. But they are the only important group in the economy who are not effectively organized, whose views are often not heard’ (Mahesh Kumar Jain, 2019).

In order to make the views of financial services consumers heard and their complaints resolved, the National Bank of Rwanda (NBR) issued a new the regulation n° 56/2022 of 27/10/2022 relating to financial service consumer’s internal complaints handling, This Regulation aims at putting in place minimum standards for handling financial services consumer complaints and ensuring that financial services consumers are aware that they can escalate their complaints to a responsible committee if not handled by concerned financial service provider. This Regulation applies to financial services providers under the purview of NBR and their representatives.

Regulatory Key Highlights

The regulation requires a Financial Service Provider (FSP) to put in place the complaint handling policy that meets at least all the set minimum requirements provided for under article 5. The regulation entrusts responsibilities of the protection of the financial services consumer and complaints handling process to the FSP’s Board, Senior Management, the Staff in charge of complaints handling, representatives of the FSP with distinct but complimentary responsibilities. As per the regulation, NBR shall establish a centralized system to manage financial services consumer’s complaints whereby all complaints lodged to a financial service provider can be managed, processed, monitored and escalated. This has already been done.

The regulation sets out general principles for FSPs as regards to accessibility of the internal complaint resolution process by the financial service consumer as provided by this regulation (Art.9). On providing information, a financial service provider should prominently inform financial service consumers their right to make complaints through clear guidelines at the financial service provider’s premises, website and in its terms and conditions, application forms, contracts and key fact statements for financial products and services.

Each financial service provider should avail sufficient, trained, and independent staff or representatives with necessary resources, capacity and authority to handle consumers’ complaints effectively. Further each financial service provider shall ensure that it provides free, functional, accessible and efficient channels for lodging complaints. These channels should be varied to include verbal face to face channel, written letter, phone call, email, complaint handling system or any other electronic means. A financial service consumer should be able to voluntarily withdraw his/her complaints at any stage of complaint and the complaint handling process should allow a consumer to initiate and track his/her compliant and escalate it to the committee as necessary.

Important deadlines

•  The financial service provider shall acknowledge receipt of the complaint promptly and not later than one (1) working day after receiving it and using appropriate channel as provided for in this regulation

•  Complaints should be handled within 15 days except for complex complaints communicated to the financial service consumers within 5 days after complaint receipts and for which progress and remaining time for resolution is communicated within 15 days.

Implications for concerned stakeholders

Some important implications include the following:

•  Feedback to complainants is provided in the language used to lodge the complaint except where the complaint was not in one of the official language in which case the complainant is required to resubmit the complaint in an official language to enable getting a feedback.

•  Financial service provider shall keep up to date data and use these data to improve its processes as well as to report to its board of directors as well as to NBR at least quarterly.

•  Other implications include the requirement for transparency and enhancing capacity of staff in consumer handling process.

•  On sanctions, NBR shall impose administrative sanctions that include warnings, pecuniary sanctions determined by this regulation, and any other administrative sanctions or fines as may be applicable for noncompliance of the law, this regulation and its implementing directives or decisions.

Click here for more details:

https://www.bnr.rw/laws-and-regulations/financial-consumer-protection/laws-and-regulations/