On April 20, 2021, the President signed the Law of the Republic of Uzbekistan “On non-banking credit organizations and microfinance activities” No.ЗРУ-765 (the “Law No.ЗРУ-765”). The purpose of Law No.ЗРУ-765 is to regulate relations in the field of activities of non-banking credit organizations and microfinance activities.
The Law No.ЗРУ-765 consists of 45 articles and the norms provided for in it are aimed at:
- expansion of sources of financing for the activities of non-banking credit organizations;
- increasing the availability of financial services, including the creation of a legal framework for the provision of Islamic finance services by microfinance organizations;
- establishing the possibility of testing new financial services within the framework of the “regulatory sandbox” (special legal regime);
- reduction of the regulatory burden as a result of the application of proportional regulation of the activities of non-banking credit institutions;
- improvement of the system for protecting the rights of consumers of services of non-banking credit organizations.