BRPD Circular No. 09: Regarding Schedule of Charges

BRPD Circular No. 09 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka - 1000. Shrabon 30, 1425 BRPD Circular No. - 09 Date: ------------------ August 14, 2018 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding Schedule of Charges. Attention is drawn to BRPD Circular No. 19 dated December 22, 2009, on the subject cited above. Although various guidelines were provided in the aforementioned circular regarding the collection of charges/fees/commissions in different areas by banks, no guidelines were provided regarding the collection of commissions against bank guarantees. Banks have been collecting commissions against bank guarantees on a monthly basis at their own discretion. Recently, complaints have been received from various customers that even if the validity period of a guarantee ends in the middle of any month, banks are collecting commissions against their issued bank guarantees for the full duration of that month. It is more reasonable to collect commissions based on the actual duration at the fixed rate if the validity period of any bank guarantee exceeds one month. Now, it has been decided that if a bank guarantee issued by any bank is issued for a period of one month or less, the bank may collect a maximum commission equivalent to one month at its own discretion. However, if the validity period of the bank guarantee is for a period longer than one month, commissions will be collected only for the period up to the fixed date when the validity period of the bank guarantee expires. This directive will come into effect immediately. Yours faithfully,

(Abu Farah Md. Naser) General Manager Phone: 9530252