Bangladesh Bank has recently instructed that no candidate in the upcoming 13th national parliamentary election may be classified as a loan defaulter for failing to pay “non-transactional” charges such as annual credit card fees or account maintenance fees.

If any aspiring candidate has been incorrectly listed as a defaulter in the Credit Information Bureau (CIB) for such minor dues, banks have been directed to rectify the status without delay.

The latest directives were issued at a bankers’ meeting held on Sunday at Bangladesh Bank headquarters, chaired by Governor Dr Ahsan H. Mansur.

According to the central bank, the move aims to prevent politically motivated disqualification of candidates - a practice allegedly seen in previous elections, where small unpaid charges led to the cancellation of nomination papers.

Non-transactional fees refer to charges unrelated to loan repayment or active financial transactions, such as annual card fees, account maintenance fees, CIB inquiry charges before loan disbursement, and SMS alert fees.

In earlier polls, a number of candidates with no overdue loans were reportedly declared defaulters on the basis of these minor unpaid charges. Under the Representation of the People Order (RPO), a candidate must regularise their loan status at least seven days before confirmation of final candidacy. A nomination may be rejected if the individual is recorded as a defaulter during that period.

As per the amended RPO, the Election Commission (EC) may also remove an elected MP if it is later proven that they concealed default information or submitted false declarations. Stakeholders allege that during previous Awami League governments, some opposition candidates were selectively disqualified on trivial grounds. There were cases where individuals with no actual loan defaults were ruled ineligible due to unpaid credit card fees, while certain major defaulters reportedly managed to contest elections. Before the 2024 polls, Bangladesh Bank faced criticism for allowing commercial bank branches to update CIB records directly - that earlier required multiple approvals and legal procedures - enabling influential defaulters to qualify without adequate verification.

Four directives to banks ahead of elections

To ensure accurate financial reporting for candidates submitting nomination papers, Bangladesh Bank has issued four key directives. Accurate loan classification: Banks must classify loans strictly in line with central bank inspection and loan-classification guidelines. All loans must be reported to the CIB database, leaving no scope for undisclosed or unreported liabilities.

No default status for unpaid non-transactional fees: Banks may not categorise customers as defaulters for failing to pay non-transactional charges such as annual card fees or SMS alert charges. Any existing default classifications based solely on unpaid fees must be corrected immediately.

Urgent updating of borrower information: Banks must ensure all identification details of potential candidates - including National ID and Tax Identification Number (TIN) - are fully updated and accurately reflected in the CIB.

Fast disposal of CIB-related court cases: Banks must take necessary steps, including appointing lawyers, to expedite the disposal of High Court cases related to loan defaults. Cases that have expired or been dismissed must be promptly reported to the CIB for correction of records.