BB eases loan repayment for CMSMEs
The central bank has relaxed further the loan repayment policy for the cottage, micro, small and medium enterprises (CMSMEs) to help them expedite their recovery effort from the fallouts of Covid-19 pandemic. The borrowers under the stimulus package will now have to repay only 15 per cent of their outstanding loans by December 31, 2021 to remain unclassified. Earlier, this ceiling was 25 per cent. The meeting also decided that the relaxed policy will not be applicable for the other sectors – they will have to pay 25 per cent of their outstanding loans by December 31, 2021 to remain unclassified. Earlier on Sunday, the country’s apex trade body urged the central bank to extend the loan repayment relaxation period by six more months to June 30, 2022. The meeting also decided that the scheduled banks will have to keep an additional 1.50 per cent special general provisioning, instead of existing 2.0 per cent, against the loans of CMSMEs only. The banks and NBFIs have disbursed loans 100 per cent of the initial targets given by the central bank under the package for the CMSMEs. These banks are BRAC, United Commercial Bank (UCB), Agrani, Uttara, Eastern, Prime, Bank Asia, Mutual Trust, Premier, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RKUB), Modhumoti and Commercial Bank of Ceylon (CBC) PLC. The NBFIs are IDLC Finance, IPDC Finance, LankaBangla Finance and United Finance. Forty-seven scheduled banks and seven NBFIs had disbursed Tk 41.37 billion, nearly 21 per cent of total Tk 200 billion, from the package aid for survival of the CMSMEs until December 21, according to the central bank.
Bank accounts unused for 6 months to be inoperative
The Bangladesh Bank yesterday said current, savings and special notice deposit (SND) accounts would become inoperative if clients don’t carry out any transaction for six months in a row. SND account is an interest-bearing deposit where advance notice is required for withdrawal of money. The interest rate on deposits at SND account is higher than savings ones. Banks will treat their current and SND accounts as dormant six months after they become inoperative. The inoperative savings accounts will have to be considered as dormant after 18 months. The central bank issued the notice as many banks are following different policies on inoperative and dormant accounts.
Foreigners in Bangladesh can now send home 80% of monthly income
The central bank yesterday relaxed rules for foreign nationals residing in Bangladesh to send remittances to their home countries. Foreigners were allowed to send home 75 per cent of their monthly income, but now they will be able to remit up to 80 per cent. The rest of the money, kept in the form of savings in banks, could be repatriated when the foreigners left permanently after expiry of their job contracts. Before sending the remittances, banks will have to ensure that the amount being moved does not exceed the balance in related bank accounts of the foreigners.
First Security Islami Bank Ltd inaugurated two sub-branches
First Security Islami Bank Ltd inaugurated two sub-branches on Tuesday. The sub branches are – Dhaka Uddan Sub-branch at Ridisha Tower, Mohammadpur, Dhaka and Singra Bazar Sub-branch at Parajoynagar, Singra, Natore.