Sme Info Sending To India
Some of BB officials trying to save BDRAL recognition
A section of Bangladesh Bank officials is trying to save the central bank’s recognition given to Bangladesh Development Ratting Agency Ltd although the central bank earlier took step to cancel the recognition due to alleged data trafficking to India by the company.
A central bank investigation carried out in June found that the credit rating agency BDRAL had ‘trafficked in’ financial information of hundreds of SMEs of Bangladesh to India in the process of calculating the ratings by using an online web-based system and a server, both hosted in New Delhi.
The BB took a move to cancel the recognition given to BDRAL on October 10, 2013 as external credit assessment institute as the company’s action of information trafficking violated the BB rules, said an official.
But, a section of BB officials, led by one of the policymakers of the central bank, is now trying to save the recognition of BDRAL by giving six months time to the company to set up new server in Bangladesh, said sources in the BB.
‘If the central bank allows the company six months, it will allow the company to send more data to India during the period. The central bank should at least stop the business activities of the company for six months to avoid the data trafficking if it (BB) did not want to cancel the recognition,’ said a BB official.
When contacted, BB governor Atiur Rahman, however, told New Age on Wednesday that they would not give any let-off to any organisation if it was involved in irregularities.
He said, ‘The central bank would take strict measures against BDRAL due to its anomalies.’
BDRAL was established in 2009 by Dun and Bradstreet South Asia Middle East Limited.
Dun and Bradstreet holds 51 per cent share of the company while nine local banks and NBFIs that includes BRAC Bank, National Bank, Southeast Bank, NCC Bank, Bank Asia, Mutual Trust Bank, Eastern Bank, IDLC Finance and Delta BRAC Housing Finance Corporation own the rest of the 49 per cent share.
Following the BB investigation, it issued a show-cause notice on August 7, 2014 to the company asking it why the BB recognition would not be cancelled for the violation of regulations.
The BB official said that the central bank had not accepted the reply of BDRAL as it was continuously trafficking in data to India by using the online web-based system and the server.
‘According to the terms and conditions of the BB recognition letter given to BDRAL, the agency is supposed to process, maintain and secure data within local set up in Bangladesh,’ explained the BB official.
BDRAL in its reply to the central bank requested to give it at least six months to set up a new server in Bangladesh, but the central bank initially decided to decline the proposal and take initiative to cancel the recognition, the BB official said.
BDRAL so far has conducted ratings of more than 1,000 SMEs.
-With New Age input
