Regulatory Alerts2017-02-12
Added · Updated
FICSD Circular Letter No. 01: Amendment to Guidelines for Customer Services and Complaint Management
The document amends the 'Guidelines for Customer Services and Complaint Management' by requiring banks to provide one month's notice with a new repayment schedule when increasing interest or profit rates on variable-term loans, while prohibiting any early settlement fees for demand loans. It caps late fees, penalties, or compensation for genuinely distressed borrowers on term loans at the applicable interest or profit rate plus 2%, and advises against accepting empty cheques as security for loans or investments due to rising fraud in the MICR cheque system.