BRPD Circular Letter No. 02: Rate of Interest/Profit on Fixed/Term Deposit

BRPD Circular Letter No. 02
Banking Policy and Regulation Department
Bangladesh Bank
Head Office
Dhaka.
February 29, 2012
BRPD Circular Letter No. 02 Date: ------------------- Falgun 17, 1418

To,
Managing Director/Chief Executive Officer
All Scheduled Banks operating in Bangladesh.

Dear Sir,

Context regarding the rate of interest/profit on fixed/term deposits.

Through BRPD Circular Letter No. 01, dated January 04, 2011, banks were instructed to strictly follow the directives of Bangladesh Bank regarding the prohibition of charging interest on deposits and loans outside the declared interest rates. However, it has recently been observed that some banks are paying interest/profit at rates higher than the declared interest/profit rate on fixed/term deposits.

In this regard, you are hereby instructed to send the following table to this department on a weekly basis, listing the fixed/term deposits of 1 crore Taka and above issued/renewed by your bank:

Serial No.	Account No.	Deposit Amount	Tenure	Declared Interest/Profit Rate	Paid Interest/Profit Rate

The information regarding fixed/term deposits issued/renewed up to the last working day of the previous week must be sent by the third working day of the following week. The aforementioned list must be signed by the Managing Director/Chief Executive Officer.

Furthermore, through BRPD Circular Letter No. 04, dated April 19, 2009, instructions were provided that the interest rates on deposits and loans could be changed more than once a month instead of once a month. It is now decided that banks may change the interest/profit rates on deposits and loans only once per month.

These instructions shall come into force immediately.

Thanking you,

Yours faithfully,

(Md. Anowarul Islam)
Deputy General Manager
Phone: 7120377