Bangladesh Bank (BB) has asked all non-bank financial institutions (NBFIs) to fix maximum 7 percent interest rate on deposit and maximum 9 percent interest rate on loan.
The instruction will come into effect from July 1 this year, according to a BB circular issued today.
Some NBFIs have recently offered high interest to clients for mobilising deposits, playing a role in increasing their cost of fund, the BB said.
Against the backdrop, the repayment capability of the borrowers has eroded which has pushed default loans and left a negative impact on the entire economy.
The BB, however, said the instruction would not be applicable for deposits, which were collected before implementing the notice.