2024-03-21 02:50:11
1 percent supervision charge has been imposed on personal loans and car loans under cottage, micro, small and medium (CMSME) loans and consumer loans. But some banks are charging more than this from consumers. Bangladesh Bank has directed the banks to refund the additional supervision charges collected in such circumstances.
Bangladesh Bank’s Banking Regulations and Policy Department has issued instructions in this regard.
According to the guidelines, there is a provision to pay a maximum of 1 percent supervision charge on personal and car purchase loans under CMSME and consumer credit to attract banks to lend to CMSME and consumer sector. This supervision charge can be collected or levied once a year. Besides, no charge or interest shall be levied at compound rate on this supervision charge levied on annual basis. But in recent times, the central bank believes that due to different banks calculating supervision charges using different methods, they are 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.
It is further stated that no penalty or interest shall be levied on the supervision charges. In levying supervision charges on term loans, the supervision charges should be calculated on the basis of the average balance 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.
In order to facilitate the payment of supervision charges for the borrowers, this charge will be recoverable on a monthly or quarterly or six-monthly basis in accordance with the repayment schedule of the respective loan in the case of term loans based on the banker-customer relationship. In case of ongoing loans, due supervision charges can be recovered while charging interest on quarterly basis. In case of subpoena 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 based banks will be able to take necessary steps in their investments following the above guidelines.
This directive will be effective immediately. The Central Bank has issued this directive under the authority of Section 45 of the Bank Companies Act, 1991.