Regulatory Alerts2024-03-12
Added
BRPD Circular No. 06: Identification and Finalization of Willful Defaulters and Measures to be Taken Against Them
This circular mandates scheduled banks in Bangladesh to establish a dedicated unit by April 9, 2024, to identify willful defaulters within 30 days of default, extendable by another 30 days with approval. It defines willful defaulters as borrowers who fail to repay despite having the capacity, obtain loans through fraud, misuse funds, or illegally transfer collateral, and requires finalization decisions by management or committees based on loan size. The document imposes strict measures including travel bans, restrictions on industrial licenses, reporting to the Credit Information Bureau as 'Doubtful', and fines of 500,000 to 1,000,000 BDT for non-compliance, with implementation effective July 1, 2024.
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