Regulatory Alerts2026-05-13
BRPD-1 Circular Letter No. 17: Interest/Profit Rate of Loan/Investment
The Bangladesh Bank’s Banking Regulation and Policy Department-1 amends Circular Letter No. 10/2024 to revise the additional interest rate charged on overdue loans and investments. The directive reduces the previously mandated 1.5% penalty rate to 0.5% on both the outstanding principal and overdue interest/profit amounts. This updated directive supersedes prior rates, remains binding on all scheduled banks, and will be incorporated into respective officers' manuals under Section 29(2)(P) of the Bangladesh Bank Order, 1991.
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