ZCZC
BSS-37
BB-CREDIT-CARD
BB asks banks not to impose compound interest on credit card
DHAKA, April 15, 2020 (BSS) – Bangladesh Bank (BB) has instructed
the commercial banks not to impose compound interest on monthly or
daily basis for credit card bills from March 15 to May 31 in view of
the ongoing general holidays due to coronavirus outbreak.
“Some banks are imposing compound interest on monthly basis for the
unpaid credit card bills. As a result, additional interest is being
paid or will have to be paid by the customers. In the current crisis,
this is not acceptable,” according to a BB circular issued today.
So, the central bank has issued the instruction to banks not to
impose compound interest on daily or monthly basis from March 15 to
May 31, the circular added.
If any bank has already imposed or received the compound interest on
daily or monthly basis since March 15, the bank will have to return
the charge or adjust with their accounts, the circular said.
Earlier, BB instructed the commercial banks to waive penalty for
credit card users on any late payment from March 15 to May 31.
BSS/KUC/MRU/2105hrs