BRPD Circular Letter No. 05: Exit Policy for Recovery/Settlement of Loans

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No: BRPD/Policy/Exit/2025 Banking Regulation and Policy Department 10 March 2025 BRPD Circular Letter No.-05 Date: ---------------- 24 Falgun 1431 Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir, Exit Policy Regarding Recovery/Settlement of Non-Performing Loans

Reference is drawn to your attention to BRPD Circular No. 13 dated 08 July 2024 on the subject matter above.

2. In order to clarify the instructions contained in the said circular, to provide further clarification, and to ensure their proper implementation, clauses 2(g), 2(h), and 3(c) of the circular are hereby replaced as follows:

'2(g) An application for exit facility must be made after paying a minimum of 5% of the existing loan position as a cash down payment. The bank must take steps to decide the borrower's application within 60 (sixty) days of receiving the application.'

'2(h) The exit facility must be approved by the Bank's Management Committee/Executive Committee. However, in the case of providing exit facility up to a principal loan amount of 20 Lakh Taka, the authority to make the decision may be delegated to the Bank's Management.'

'3(c) No loan that has received exit facility benefits shall be rescheduled/restructured under any circumstances. If the customer defaults in repayment after receiving this facility, the bank will take necessary legal measures for loan recovery.'

3. These instructions are issued under the powers conferred by Section 45 of the Companies Act, 1991.

4. These instructions shall come into effect immediately.

Yours faithfully, (Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252