Which action is required when an agency appointment is cancelled by a bank?

• A. Inform the Central Bank immediately.
• B. Publish a national newspaper notice within seven days.
• C. Write to all customers affected within 28 days.
• D. Do nothing.

Answer: (A)

When a bank cancels an agency appointment, regulatory notification is the essential duty. Keeping the central regulator informed ensures the supervisory records reflect who is authorized to act on behalf of the bank and allows the regulator to adjust oversight accordingly. Promptly informing the Central Bank helps prevent the agent from appearing still empowered to act, supports risk management, and protects consumers by ensuring authorities have the latest status.

Other options aren’t typically required by regulatory rules and could create confusion or unnecessary disruption. Publishing a newspaper notice or writing to all affected customers may not be mandated and could cause misinformation or alarm. Doing nothing would fail to meet supervisory obligations. The direct, timely action is to notify the Central Bank immediately.