BB moves to streamline bank charges, fees
Wednesday, 23 December 2009
Siddique Islam
The central bank has taken a move for streamlining bank charges, fees and commissions aiming to protect interests of depositors, investors and clients, officials said Tuesday.
The Bangladesh Bank (BB) issued a master circular on schedule of changes Tuesday for both lending and deposits that would come into effect from January 1, 2010.
"We've taken the decision in consultation with the Association of Banks, Bangladesh (ABB)," a BB senior official told the FE, adding that the central bank has taken the latest move after detecting inconsistencies in the charges, fees and commissions for maintaining saving accounts with the commercial banks.
"The central bank will rationalise the changes in consolation with stockholders time to time to facilitate the country's business activities," the BB official added.
The banks will not be able to charge any minimum fees, incidental charges, ledger fees and service charges for maintaining current and saving accounts, the BB said in the circular.
However, the banks will be able to impose charge maximum Tk 300 and Tk 500 for saving and current accounts respectively.
Clients will be able to take balance confirmation certificates from banks for free twice a year, according to the circular. "If anyone asks for a statement more than twice a year, they may be charged a maximum of Tk 200," the central bank said.
The central bank has lifted fees on premature and counter transaction asking the banks not to charges for such transactions.
"Costs of mailing, courier, telex and SWIFT must be on the basis of actual expenditure for letters of credit (LCs) transmission, amendment, confirmation, cancellation and foreign correspondence charge," it added.
The charges for side LCs, deferred LCs, cent percent cash margin LCs and back-to-back LCs will be 0.40 per cent, 0.50 per cent, 0.25 per cent and 0.40 per cent on a quarterly basis.
Charges for LCs advising, amendment and transfer have been fixed maximum at Tk 750 while the charges for LCs acceptable maximum at 0.40 per cent and maximum at 0.20 per cent locally on a quarterly basis.
Foreign correspondence, handling and document endorsement charges have been waived while the charges for export bills negotiation and export bills collection have been fixed at maximum 0.15 per cent.
The charges for issuing back-to-back LCs, C&F certificates and certificates for realisation of export prices have been set at Tk 500.
The central bank has taken a move for streamlining bank charges, fees and commissions aiming to protect interests of depositors, investors and clients, officials said Tuesday.
The Bangladesh Bank (BB) issued a master circular on schedule of changes Tuesday for both lending and deposits that would come into effect from January 1, 2010.
"We've taken the decision in consultation with the Association of Banks, Bangladesh (ABB)," a BB senior official told the FE, adding that the central bank has taken the latest move after detecting inconsistencies in the charges, fees and commissions for maintaining saving accounts with the commercial banks.
"The central bank will rationalise the changes in consolation with stockholders time to time to facilitate the country's business activities," the BB official added.
The banks will not be able to charge any minimum fees, incidental charges, ledger fees and service charges for maintaining current and saving accounts, the BB said in the circular.
However, the banks will be able to impose charge maximum Tk 300 and Tk 500 for saving and current accounts respectively.
Clients will be able to take balance confirmation certificates from banks for free twice a year, according to the circular. "If anyone asks for a statement more than twice a year, they may be charged a maximum of Tk 200," the central bank said.
The central bank has lifted fees on premature and counter transaction asking the banks not to charges for such transactions.
"Costs of mailing, courier, telex and SWIFT must be on the basis of actual expenditure for letters of credit (LCs) transmission, amendment, confirmation, cancellation and foreign correspondence charge," it added.
The charges for side LCs, deferred LCs, cent percent cash margin LCs and back-to-back LCs will be 0.40 per cent, 0.50 per cent, 0.25 per cent and 0.40 per cent on a quarterly basis.
Charges for LCs advising, amendment and transfer have been fixed maximum at Tk 750 while the charges for LCs acceptable maximum at 0.40 per cent and maximum at 0.20 per cent locally on a quarterly basis.
Foreign correspondence, handling and document endorsement charges have been waived while the charges for export bills negotiation and export bills collection have been fixed at maximum 0.15 per cent.
The charges for issuing back-to-back LCs, C&F certificates and certificates for realisation of export prices have been set at Tk 500.