Regulatory Alerts2020-06-10
Added · Updated
BRPD Circular No. 12: Transfer of Interest/Profit to Non-Interest Bearing Blocked Account During April 1, 2020 to May 31, 2020 Considering Business Situation Due to Corona Virus (COVID-19)
Bangladesh Bank mandates that interest or profit accrued on customer loans and investments as of March 31, 2020, for the period of April 1 to May 31, 2020, must be transferred to a non-interest bearing blocked account rather than recognized as income. The circular specifies waiver rates based on loan size: full waiver for balances up to BDT 100,000; 2% annual rate for balances between BDT 100,000 and BDT 1,000,000; and 1% annual rate (capped at BDT 120,000 per customer) for balances above BDT 1,000,000. Banks are required to claim these waived amounts as government subsidies, ensure no more than 9% interest is charged on unclassified loans excluding credit cards, and submit detailed application forms with supporting documentation to the Banking Regulation and Policy Department by July 15, 2020.
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