Regulatory Alerts2026-06-23
BRPD-1 Circular Letter No. 20: Prudential Regulations for Consumer Financing
Bangladesh Bank has authorized scheduled banks to disburse consumer loans directly to vendors via electronic fund transfers as an additional permissible payment mode. This directive permits direct transfers to vendors' accounts within the same bank or through RTGS for external accounts, while strictly prohibiting the crediting of loan proceeds to borrowers' accounts or cash payments. Banks are required to implement robust internal controls to mitigate operational, fraud, and cybersecurity risks associated with these digital disbursement arrangements.
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