BRPD Circular No. 11: Transfer of Interest/Profit to non-Interest bearing blocked account during 01 April 2020 to 31 May 2020 considering the business situation due to breakout of Corona Virus (COVID-19)

Website: www.bb.org.bd
Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.
03 May 2020
BRPD Circular No. 11 Date: -----------------
20 Baishakh 1427
Managing Director/Chief Executive
All Scheduled Banks operating in Bangladesh.
Dear Sir,
Regarding the transfer of interest/profit imposed/imposable on bank loans/investments to non-interest bearing blocked accounts, considering the business situation created due to the outbreak of Novel Coronavirus (COVID-19). To revive and keep the country's economic activities dynamic in order to tackle the potential economic impact in Bangladesh due to the outbreak of Novel Coronavirus (COVID-19), various financial stimulus packages have been announced, including the provision of low-interest loan/investment facilities through the banking system.
2. Now, it has been decided that, considering the business situation created due to the Coronavirus, all types of interest/profit imposed/imposable on bank loans/investments during the period from 01 April 2020 to 31 May 2020 must be transferred to a 'non-interest bearing blocked account'. Until further instructions are given, the interest/profit transferred to the blocked account cannot be collected from the respective loan/investment recipient and such interest/profit cannot be transferred to the bank's income account.
3. If any bank has already transferred interest/profit to the income account, it must be adjusted through a reverse entry.
4. Regarding the adjustment of the above-mentioned interest/profit held/to be held in the blocked account, further instructions will be provided later.
This instruction is issued under the power conferred by Section 45 of the Bank Company Act, 1991.
Yours faithfully,
(Md. Maqbul Hossain)
General Manager (Current Charge)
Phone: 9530268