DFIM Circular Letter No. 17: Identification & finalization of willful defaulters and measures to be taken against them

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No: DFIM.CIR.17 DFIM Circular Letter No. 17 Managing Directors / Chief Executive Officers All Finance Companies operating in Bangladesh.

Dear Sir,

Regarding the identification and finalization of willful defaulters and measures to be taken against them.

1. Attention is drawn to DFIM Circular No. 04, dated 03 April 2024, issued on the subject cited above.

2. Through the aforementioned circular, guidelines were provided regarding the identification and finalization of willful defaulters, measures to be taken against them, and related reporting. Now, in order to make the reporting regarding willful defaulters more effective, the reporting part of Paragraph 8 of the said circular is hereby replaced as follows:

"8. Reporting: (1) After identifying and finalizing a willful defaulter, the finance company must report the relevant information to the Credit Information Bureau (CIB) of Bangladesh Bank. The willful defaulter must be displayed in the CIB as WD (Willful Defaulters). Furthermore, when the finance company sends a letter to the customer finalized as a willful defaulter regarding this matter, a copy of the said letter along with the required information as per Appendix 'B' must be supplied to the Credit Information Bureau (CIB); (2) The finance company must submit a cumulative report of willful defaulters in the form of a statement (as per Appendix 'C') on a quarterly basis to the Official Institutions and Market Department and the Credit Information Bureau (CIB) by the 10th (ten) day of the following month; and updated records along with all relevant documents must be presented to the inspection team of Bangladesh Bank as required; and (3) The finance company must inform the Official Institutions and Market Department within 7 (seven) days about any updates (member name, mobile number, and e-mail address) or changes to the willful defaulter identification unit."

3. Appendix 'B' attached to DFIM Circular No. 04/2024 is hereby revoked by this circular letter, and all other instructions contained in the said circular shall remain unchanged.

4. These instructions are issued under the powers conferred by Section 30(6) and 41(2)(d) of the Finance Companies Act, 2023, and shall be effective immediately.

Appendix: As per distribution

09 Shraban 1432 Date: 24 July 2025 Official Institutions and Market Department

Yours faithfully, Gautam Kumar Ghosh Director (DFIM) Phone: 9530178

Appendix-"B" Information regarding finalized willful default loans Name of Finance Company: (a) In the case of individuals: S.No. Name of Willful Defaulter (Individual) Loan Amount: BDT National ID Number (NID) Date of Birth Name of Finance Company Branch Date of Finalization as Willful Defaulter Loan Amount: BDT (Tk) (1) (2) (3) (4) (5) (6) (7) (8)

(b) In the case of sole proprietorships: S.No. Name of Willful Defaulter (Name of Establishment) Loan Amount: BDT Name of Proprietor Proprietor's National ID Number (NID) Date of Birth of Proprietor Name of Finance Company Branch Date of Finalization as Willful Defaulter Loan Amount: BDT (Tk) (1) (2) (3) (4) (5) (6) (7) (8) (9)

(c) In the case of companies/establishments: S.No. Name of Willful Defaulter (Name of Company/Establishment) Loan Amount: BDT Name of Finance Company Branch Date of Finalization as Willful Defaulter Loan Amount: BDT (Tk) (1) (2) (3) (4) (5) (6)

Appendix-"C" Quarterly Statement regarding Willful Defaulters dated -------------- Name of Finance Company: (a) Total information regarding willful default loans of the Finance Company Total number of customers with finalized willful default loans in the last quarter Total (Cumulative) willful default loans Loan outstanding Total number of customers with finalized willful default loans up to the last quarter Total (Cumulative) willful default loans Loan outstanding

(b) Information regarding willful default loans on a borrower basis Type of Finalization S.No. Name of Willful Defaulter (Individual/Establishment or Company) Branch of Finance Company that provided the loan Type of Establishment (Large Industry, Medium Industry, Others) Nature of Loan Origin (Current, Call, Term, etc.) Willful Default Loan Outstanding (in Crore Taka) Reason for Willful Default (in brief) Authority that took the final decision Remarks (Measures taken against the borrower, if litigation is ongoing, etc.) Total number of newly finalized willful default loans in the last quarter Subtotal Total number of finalized willful default loans up to the previous quarter of the last quarter Subtotal Total (1+2)

Name of Responsible Officer: Designation: Mobile Phone No: Email: