New Financial Consumer Protection Act gets underway

The Central Bank has taken measures to ensure the protection of financial consumers paying special attention on this respect, Governor of the bank W.D. Lakshman disclosed at the virtual presentation of its Road Map for 2021 on Monday.

It is expected to introduce a new Financial Consumer Protection Act to cover all financial institutions, he said.

Measures will also be taken in the period ahead to set up an autonomous financial consumer protection authority covering all the stakeholders in the financial industry.

It will ensure that the policies and regulatory measures adopted by the Central Bank are implemented at the grassroots level supporting the public.

This new department is in the process of drafting a regulation in relation to developing a comprehensive financial consumer protection framework covering the entities under its purview.

It will be enabling the bank to proactively engage in regulation of financial market conduct and other related activities.

Going forward, a new contact centre is to be set up, which will facilitate the effective discharge of its activities with easy access for financial consumers.

The Financial Inclusion Strategy will be implemented in 2021, to enhance financial inclusion, aimed at increasing the usage and availability of quality financial products in the market that are affordable and sustainable.

Further, the establishment of the National Financial Inclusion Council and National Financial Inclusion Management Committee will remain key priorities in the period ahead.

Several projects are being planned to support micro and small-scale entrepreneurs in raising their income, improving financial literacy, providing formal financial sector support, and enhancing awareness among the rural community.(BS)