BB directions for banks

No penalty for payment default during shutdown

Free payment time extended until July 31


FE REPORT | Published: July 24, 2024 23:40:53


No penalty for payment default during shutdown


Clients of credit cards, borrowers and accountholders of savings schemes can deposit or repay instalments sans additional interest or penalties under a clemency for periods of curfew and unrest-induced unscheduled holiday.
Bangladesh Bank (BB) issued Wednesday directions for banks and financial institutions to take measures to this effect, as the country had passed through massive violence in the wake of students' job-quota movement which was alter stoked by opposition politicians' solidarity support.
The central bank issued this order to banks and financial institutions in two separate notifications on the day, now that troubles are dying down and banks reopening.
The accountholders who were supposed to pay their loan dues, credit-card bills and saving-deposit instalments during the curfew and public holiday can deposit the arrears till July 31.
The central bank rules that banks and financial institutions will not collect any additional interest, penalty or late fee for instalments payable during July 18-25.
"No savings scheme can be cancelled for failure to pay instalments during this time," says the regulatory firman.
As a result of this directive from the central bank, there will be no problem for the customers who could not deposit the bills or instalments with the banks or financial institutions during this period. Now they are allowed to repay or deposit extra time.
According to the notification of Bangladesh Bank, in the recent situation of the country, many borrowers and credit-card customers were not able to pay off their dues on time.
Besides, many depositors fell back in depositing instalments of a number of savings schemes, including Deposit Pension Scheme (DPS).
"If instalments of various savings schemes, including DPS, are paid by the customers by July 31, no late fee or penalty can be imposed," it says.
According to the guidelines, if a customer fails to pay the instalment of any savings scheme during this time, the accounts cannot be discontinued or cancelled and interest cannot be paid less than the pre-announced rate.
Bangladesh Bank officials say at this time many people wanted to deposit money with the banks but could not due to the situation. As a result, the responsibility of this period cannot fall on them anyway.

jasimharoon@yahoo.com

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