BRPD Circular Letter No. 09: Identification & Finalization of Willful Defaulters and Measures to be Taken Against Them

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No: BRPD Banking Regulation and Policy Department BRPD Circular Letter No.-09

16 April 2025 Date:----------------- 03 Bangabda 1432 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir,

Regarding the identification and finalization of willful defaulters and measures to be taken against them

Reference is drawn to your attention to BRPD Circular No. 06, dated 12 March 2024, issued on the subject cited above.

2. Through the aforementioned circular, the following instructions were issued regarding the identification and finalization of willful defaulters, measures to be taken against them, and reporting. Now, in order to make the reporting part of the aforementioned circular more effective, the reporting section of Section 8 of the said circular is hereby replaced as follows:

3. Reporting:

(1) After identifying and finalizing a willful defaulter, the bank must report the relevant information to the Credit Information Bureau (CIB) of Bangladesh Bank. The willful defaulter must be displayed in the CIB as 'WD' (Willful Defaulter). Furthermore, when sending a letter to the customer finalized as a willful defaulter, the bank must provide the Credit Information Bureau (CIB) with the requested information along with a copy of the said letter, as per Annexure 'A';

(2) The bank must submit a report in the form of a cumulative monthly statement (as per Annexure 'B') regarding the cumulative data of willful defaulters to the Banking Regulation and Policy Division (Division-1) by the 10th (ten) date of the following month, at the end of each month; and up-to-date records along with all relevant documents concerning this must be presented to the Bangladesh Bank inspection team as required;

(3) The bank must inform the Banking Regulation and Policy Division (Division-1) of the updated information of the Willful Defaulter Identification Unit (names of members, mobile numbers, and email addresses).

3. The Annexure 'A' attached with BRPD Circular No. 06/2024 is hereby cancelled by this circular letter, and all other instructions contained in the said circular shall remain unchanged.

4. These instructions are issued under the powers conferred by Sections 27B and 45 of the Companies Act, 1994 (as amended up to 2023).

5. These instructions shall take immediate effect.

Enclosure: As per text

Yours faithfully,

(Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252

Annexure 'A' Information Regarding Finalized Willful Defaulters

Name of the Bank:

(a) In the case of an individual:

S.No. Name of Willful Defaulter (Individual) Loan Account No. National ID Number (NID) Date of Birth Name of Bank Branch Date of Finalization as Willful Defaulter Loan Amount (Tk) (1) (2) (3) (4) (5) (6) (7) (8)

(b) In the case of a Sole Proprietorship:

S.No. Name of Willful Defaulter (Name of Establishment) Loan Account No. Name of Proprietor Proprietor's National ID Number (NID) Proprietor's Date of Birth Name of Bank Branch Date of Finalization as Willful Defaulter Loan Amount (Tk) (1) (2) (3) (4) (5) (6) (7) (8) (9)

(c) In the case of a Company/Establishment:

S.No. Name of Willful Defaulter (Name of Company/Establishment) Loan Account No. Name of Bank Branch Date of Finalization as Willful Defaulter Loan Amount (Tk) (1) (2) (3) (4) (5) (6)

Annexure 'B' Monthly Statement Regarding Willful Defaulters as of --------- Date

Name of the Bank:

a) Information regarding the total willful default loans of the bank

Total Finalized Willful Default Loans (Cumulative) in the Last Month Number of Willful Defaulter Customers Loan Balance

b) Information regarding willful default loans based on borrower

Type of Finalization S.No. Name of Willful Defaulter (Individual/Establishment or Company) Lending Bank Branch Type of Establishment (Large Industry, Medium Industry, Others) Nature of Loan Origin (Current, Call, Term, etc.) Willful Default Loan Balance (Crore Taka) Reason for Becoming Willful Defaulter (Briefly) Decision Taken by Competent Authority (Measures taken against the defaulter, if case is ongoing, etc.)

Newly Finalized Willful Default Loans in the Last Month Subtotal (1) Previously Finalized Willful Default Loans up to the Last Month Subtotal (2) Total (1+2)

Name of Responsible Officer: Designation: Mobile Phone No: Email: