Regulatory Alerts2024-07-24
Added · Updated
DFIM Circular Letter No. 24: Payment of the loan and installment of savings schemes.
Finance companies operating in Bangladesh are instructed to waive all interest, profit, penalty interest, additional charges, late fees, and fines on overdue loan payments made between July 18, 2024, and July 31, 2024. The directive also prohibits the imposition of late fees or penalties on savings scheme installments paid by this date, bans the closure or cancellation of such schemes due to payment delays during this period, and forbids paying reduced interest rates for these delayed payments. Any fees or penalties already collected from borrowers or depositors for transactions falling within this window must be refunded or adjusted immediately.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh.
Ref. No. 37.00.0000.024.06.001.24-195 DFIM Circular Letter No. 24
Managing Director / Chief Executive Officer All Finance Companies Operating in Bangladesh.
Dear Sir,
Regarding the payment of loan arrears and installments of various savings schemes
In the current situation of the country, many borrowers have been unable to pay/settle their overdue amounts within the stipulated time. Additionally, many depositors have been unable to deposit funds into their various savings schemes at the stipulated times.
- In view of the above, the following instructions will be followed for the payment of overdue loans due between July 18, 2024, and July 25, 2024, and for the acceptance of installments of various savings schemes:
(a) If the overdue amount of a loan is paid by July 31, 2024, no interest/profit, penalty interest/additional interest/additional profit/late fee/fine (by whatever name it may be called) shall be charged/recovered on such overdue amount.
(b) If the installment of various savings schemes is paid by the customer by July 31, 2024, no type of late fee or fine shall be charged/recovered on it. Furthermore, if a customer is unable to pay the installment of any savings scheme during the aforementioned period, it shall not be closed/cancelled, nor shall less interest/profit be paid compared to the previously declared rate.
(c) If any interest/profit and penalty interest/late fee has already been charged/recovered on the aforementioned loans, or if any late fee/fine has been charged/recovered on various savings schemes, it must be refunded/adjusted.
- Under the authority granted under Section 41(2)(d) of the Finance Company Act, 2023, these instructions are issued, which shall come into force immediately.
Yours faithfully,
(Md. Asaduzzaman Khan) Director (DFIM) Phone: 9530178.
Date: 24 July 2024 Department of Financial Institutions and Markets