Regulatory Alerts2019-03-13 | Circular No. 04 of 2019Circular No. 04 of 2019 on Non-Interest Based Incentive Schemes for Interest Bearing Savings and Time Deposits of Licensed Banks
The Central Bank of Sri Lanka issued Circular No. 04 of 2019 to prohibit licensed banks from using non-interest based incentive schemes such as lotteries and gift draws for mobilizing interest-bearing deposits. This ban aims to prevent undue competition and the distortion of financial product features that undermine the Central Bank's interest rate policies. Banks are permitted to conduct seasonal gift schemes only if gifts are provided to all relevant customers, market interest rates are maintained, and no additional costs or terms are imposed on depositors.
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