BRPD Circular Letter No. 46: Policy on Interest Waiver

The document requires scheduled banks in Bangladesh to obtain the opinion of the Head of Internal Control and Compliance (HICC) via the internal audit department to justify fund write-offs for interest waivers in circumstances beyond those specified in BRPD Circular Letter No. 06/2022. This directive clarifies the implementation of previous circulars, while all other instructions regarding interest waivers remain unchanged. The instruction is issued under the authority of Section 49(1)(c) of the Bank Companies Act, 1991.

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Bangladesh Bank
Central Office
Motijheel, Dhaka-1000
Bangladesh.
Ref No.: B.R.P.D.(Reg.)-35
Banking Regulation and Policy Department
16 November 2022
BRPD Circular Letter No.-46 Date: ------------------- 01 Agrahayan 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the policy on interest waiver. Reference is made to your attention to BRPD Circular No.-06; dated: 21 April 2022 and BRPD Circular Letter No.-18; dated: 24 May 2022 on the subject cited above.

In order to provide further clarification on the instructions contained in paragraph 2(c) [replaced by BRPD Circular Letter No.-18/2022] of BRPD Circular No.-06/2022 and to ensure its proper implementation, it is informed that in addition to the situations mentioned in paragraph 2(b) of BRPD Circular No.-06/2022, the opinion of the Head of Internal Control and Compliance (HICC) must be obtained through the bank's internal audit department to ensure the justification for relaxing the recovery percentage for fund expenditure in other indispensable situations.
Furthermore, other instructions of BRPD Circular No.-06/2022 regarding interest waiver [including replacement by BRPD Circular Letter No.-18/2022] shall remain unchanged.
These instructions are issued under the power conferred by Section 49(1)(c) of the Bank Companies Act, 1991.

Yours faithfully,
(Maksuda Begum)
Director (BRPD)
Phone: 9530252

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Lineage: In force

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This document amends: BRPD Circular No. 06: Policy on Interest Waiver

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works