Regulatory Alerts2017-03-13
Added · Updated
BRPD Circular No. 02: Circular on Schedule of Charges
The document mandates that loan application fees for Cottage, Micro, Small, and Medium Enterprises (CMSME) must not exceed 200 Taka. Documentation, CIB, stamp, and legal/collateral evaluation fees are to be charged at actual cost, while prepayment fees are prohibited for Cottage and Micro sector loans. No additional charges, fees, or commissions beyond those specified may be collected from CMSME loan accounts, with these instructions effective immediately.
Ref: No. BRPD-Circular-No. 02 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka - 1000. March 13, 2017 BRPD Circular No. - 02 Date: ---------------- Falgun 29, 1423 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh.
Dear Sir,
Reference is drawn to your attention to BRPD Circular No.-19 dated December 22, 2009, on the subject cited above.
Regarding the Schedule of Charges.
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In order to protect the interests of depositors/investors/customers, several circulars on charge rationalization were issued, namely BRPD Circular No.-19/2009, 09/2010, and 19/2010. Recently, it has been observed in the implementation of the Schedule of Charges by banks that in the Cottage, Micro, Small, and Medium Enterprise [CMSME] sector, various charges/fees/commissions are being collected from customers under different names and rates for different stages from the receipt of the loan application to loan sanction. As a result, the actual cost of loans to customers increases, which may hinder the development of this sector.
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In this context, the following guidelines will apply in the distribution of loans in the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector:
(a) A loan application fee shall not be collected exceeding 200/- Taka.
(b) Documentation fee, CIB charge, Stamp charge, and Legal and Collateral Evaluation fee shall be determined based on actual cost.
(c) In the case of prepayment of loans granted in the Cottage and Micro sectors, prepayment fee shall not be collected.
(d) No charge/fee/commission in excess of the aforementioned fees/charges shall be collected from loans granted in the CMSME sector.
These instructions shall be implemented immediately.
Yours faithfully,
(Abu Farah Md. Naser) General Manager Phone: 9530252