DFIM Circular Letter No. 21: Interest/Profit Rate of Deposit and Loan/Lease/Investment

Department of Financial Institutions and Markets Bangladesh Bank Head Office Dhaka.
Ref No.: DFIM/Reg/21
DFIM Circular Letter No. 21
To:
Managing Director/Chief Executive Officer
All Financial Institutions operating in Bangladesh.

Dear Sir,

Subject: Interest/Profit Rate of Deposit and Loan/Lease/Investment.

Reference is drawn to your attention to DFIM Circular Letter No. 07, dated: June 20, 2023, on the subject matter above.

2. It has now been decided that the interest/profit rate of deposit and loan/lease/investment described in clause 1(k) of the said circular shall be applicable from now on as follows:

"(k) Financial institutions shall determine the interest/profit rate of deposit and loan/investment under the policy guidelines approved by their own management; however, (1) The interest/profit rate of deposit shall not exceed BDT +2.5%; (2) The interest/profit rate of loan/lease/investment shall not exceed BDT +5.5%."

3. The interest/profit rate described in paragraph 2 shall apply to newly distributed loans from the date of issuance of this directive.

4. In addition, all other instructions of DFIM Circular Letter No. 07/2023 shall remain unchanged.

This directive is issued under the powers granted by sections 18(c), (e), and (f) of the Financial Institutions Act, 1993, and shall take effect immediately.

Yours faithfully,

(Md. Amir Uddin)
Director (DFIM)
Phone: 9530178.

23 Ashwin 1430
Date:
08 October 2023