Regulatory Alerts2009-03-03
Added · Updated
DOS Circular No. 01: Procedure of Imposing of Penal Interest and Rate thereof due to Failure in Maintaining Cash Reserve (CRR) by the Scheduled Banks
The document consolidates previous directives and establishes that penal interest at the Bank Rate plus 5% applies to any daily shortfall in the 4.5% Cash Reserve Ratio (CRR) requirement. It further mandates a daily penal interest charge for bi-weekly average CRR shortfalls below 5%, with potential enforcement actions under Section 36(5) of the Bangladesh Bank Order, 1972, if the shortfall persists into the third fortnight. These rules are effective from March 1, 2009, and explicitly repeal DOS Circulars No. 02/2005 and No. 06/2005.
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