Some banks are charging higher than stipulated charges from consumers in the micro, small, cottage and medium (CMSME) industry sector and consumer loans. The Central Bank has directed to refund the additional supervision charges collected in such circumstances.
On Monday (March 18), Bangladesh Bank issued a circular in this regard.
It said that to attract banks to provide loans to CMSME and consumer sector, there is a provision of maximum 1 percent supervision charge on personal and car purchase loans under CMSME and consumer loans. This supervision charge can be collected or levied once a year. Also, no charge or interest shall be levied at compounded rate on this supervision charge levied on an annual basis. But in recent times, the central bank feels that due to different banks adopting different methods of calculation of supervision charges, in practice, the central bank is collecting more supervision charges from the customers. In such circumstances, any additional supervision charges collected from any borrower are directed to be refunded or adjusted.
Bangladesh Bank says that in imposing supervision charges on term loans, the supervision charges should be calculated on the basis of the average status of the original loan. In case of ongoing loans, the supervision charge should be calculated taking the daily average balance of the principal loan as the basis. No penalty or interest shall be levied on the supervision charges.
In order to make the payment of supervision charges easier for the borrowers, this charge will be recoverable on a monthly or quarterly or six-monthly basis in accordance with the payment schedule of the respective loan in the case of term loans based on banker-customer relationship. In case of ongoing loans, due supervision charges can be recovered while charging interest on quarterly basis. In the case of demand loans, repayment at the end of the term may be made in one lump sum, or may be made in several installments during the term with the consent of both parties.
If the supervision charges are levied on monthly or quarterly or semi-annual basis, the supervision charges shall be adjusted based on the calculation of the average status obtained at the end of the year. Shariah-compliant banks will be able to take necessary measures following the aforementioned guidelines in relation to their investments.
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