Regulatory Alerts2024-08-07
Added · Updated
BRPD Circular Letter No. 36: Taking thumb impression on loan related charge documents
The circular clarifies that banks must continue to obtain thumb impressions on loan-related charge documents and verify them against the National ID database. For individuals whose thumb impressions are not in the National ID database, such as foreigners, expatriates, or persons with disabilities, banks are required to independently verify their identity. All other instructions from the referenced circular remain unchanged and this directive takes immediate effect.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh Ref No: BRPD-Regulation & Policy BRPD Circular Letter No. 36 07 August 2024 Date: -------------------- 23 Shraban 1431
Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh
Dear Sir,
Subject: Taking Thumb Impression on Loan Related Charge Documents
Reference is invited to BRPD Circular No. 15 dated 02 August 2023 issued on the above subject.
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Through the said circular, instructions were issued to ensure hearing of the borrower and relevant third party/guarantor regarding the subject matter of the charge documents taken/to be taken for loan recovery, to resolve legal complexities arising in loan recovery, and to take their signature (where applicable) along with their thumb impression of both hands (thumb impression) after verification from the National ID (NID) database. However, it has come to the notice of this office that banks are facing difficulties in complying with the instruction regarding verification of thumb impressions from the NID database in certain cases (e.g., foreign nationals, expatriate Bangladeshis, persons with disabilities, etc.).
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It is now clarified that for the implementation of the given instructions, the signature of the borrower, guarantor, and relevant third party/person along with their thumb impression of both hands on loan-related charge documents must be taken and verified. However, in the case of persons whose thumb impressions are not stored in the NID database and thus cannot be verified, banks must ensure their correct identity at their own responsibility. Furthermore, all other instructions mentioned in the said circular will remain unchanged.
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These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.
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These instructions will take effect immediately.
Yours faithfully,
(Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252