Regulatory Alerts2015-03-31
Added · Updated
GBSRD Circular Letter No. 03: Amendment of Policy regarding 10 Taka Account Holders Small/Marginal/Landless/Natural Disaster Affected Farmers and Small or Micro Traders under Financial Inclusion Program
The document amends the policy for the 10 Taka Account Holders Financial Inclusion Program by revising the customer-level interest rate calculation method for loans provided by Microfinance Institutions (MFIs). Specifically, it replaces previous instructions with a directive that interest must be calculated on a simple interest basis, while maintaining the maximum customer-level interest rate cap at 9.50%. This amendment, effective immediately, modifies the guidelines previously issued in Circular No. 01 dated May 14, 2014, and Circular Letter No. 03 dated December 22, 2014.
website:www.bb.org.bd
Green Banking & CSR Department Bangladesh Bank Head Office Dhaka.
March 31, 2015 GBSRD Circular Letter No. 03/2015 Date:------------------- Chaitra 17, 1421
Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh.
Dear Sir,
Context of partial amendment of the policy regarding the refinancing scheme for 10 Taka Account Holders Small/Marginal/Landless Farmers, Natural Disaster Affected Low Income Professionals, and Rural/Small Traders under the Financial Inclusion Program.
Attention is drawn to you regarding GBSRD Circular No. 01, dated: May 14, 2014 and GBSRD Circular Letter No. 03, dated: December 22, 2014.
Customer Level Interest Calculation: In the case of loans provided by MFIs, the customer level interest rate shall be maximum 9.50%; however, the instruction described in paragraph 12.2 of GBSRD Circular No. 01 dated May 14, 2014 is amended to mean "Interest shall be calculated on the basis of simple interest at the customer level".
Other terms and conditions mentioned in previously issued circulars shall remain unchanged.
This directive shall be effective immediately.
Yours faithfully,
(Manoj Kumar Biswas) General Manager Phone: 9530320