DFIM Circular No. 09: Fixation of Minimum Maturity Period of Term Deposit for Financial Institutions

DFIM Circular No. 09: Fixation of minimum maturity period of term deposit for Financial Institutions

Date: 17 Agrahayan, 1420
1 December, 2013

To,
Chief Executive/Managing Director,
All Financial Institutions operating in Bangladesh.

Dear Sir,

Re-fixation of minimum period for deposit collection by Financial Institutions.

Reference is drawn to FID Circular No. 03/2003 and 07/2005 and DFIM Circular No. 04/2010 previously issued on the above subject.

According to existing regulations, Financial Institutions can accept minimum 6 (six) months maturity deposits from the public and institutions, and there is an opportunity for cash payment (early withdrawal) before the maturity period expires upon the request of the depositor after the maturity period of the accepted deposit exceeds 6 (six) months.

Now, a minimum maturity period of 3 (three) months has been fixed for all types of deposits collected by Financial Institutions. In this regard, cash payment before the maturity period can be made upon the request of the depositor after the maturity period of the accepted deposit exceeds 3 (three) months.

In addition, all other instructions of FID Circular No. 03/2003 will remain unchanged, and FID Circular No. 07/2005 and DFIM Circular No. 04/2010 will be considered void.

These instructions will be implemented immediately.

Yours faithfully,

(Sd/-)
(A. K. M. Amzad Hossain)
Deputy General Manager
Phone: 9530249

From:
Deputy General Manager
Department of Financial Institutions and Markets Bangladesh Bank Head Office Dhaka.