Bangladesh Bank has instructed the commercial banks not to impose compound interest on monthly or daily basis for credit card bills from Mar 15 to May 31 in view of the ongoing general holidays due to coronavirus outbreak, local media reported.
“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 central circular issued on Wednesday (Apr 15).
So, the central bank has issued the instruction to banks not to impose compound interest on daily or monthly basis from Mar 15 to May 31, the circular added.
If any bank has already imposed or received the compound interest on daily or monthly basis since Mar 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 Mar 15 to May 31.
