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BB reviews instruction on credit-card bills payment

BB reviews instruction on credit-card bills payment

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  • Staff Correspondent
  • 26 August, 2021 12:00 AM
  • Print news

Bangladesh Bank (BB) on Wednesday reviewed the instruction related to bill payment of credit cards and person to person (P2P) transactions of Mobile Financial Service (MFS) provider. 

The central bank asked banks or lenders to impose late payment fee on credit card holders who cannot pay bills due after completion of 5 days from the withdrawal of the government declared movement restriction.

The banks or lenders can not be implied any interest or profit from the date of transaction, as per the bb circular published on Wednesday. The BB also instructed banks to follow the guideline issue on September 24, 2020.

Under the guidelines, banks can impose interest or profit after ending the scheduled day of payment and banks or lenders can impose late fee for a single time only for late payment.  Earlier on April 4, 2021 circular,  The central bank instructed banks or lenders not to enforce any late payment fee on credit card holders who cannot pay dues as per scheduled during the government-declared movement restriction time. BB only allowed impose late fee after 5 days from the withdrawal of the government declared movement restriction. Along with this banks can realise interest on the principal amount for failure the payment schedule during lockdown period.

 The BB instruction said banks or lenders cannot charge any kind of compound interest or interest on previous interest.

The BB also imposed monthly transaction limit of Mobile Financial Service (MFS) for person to person (P2P) at Tk 0.2 million, as like pre-Covid-19 pandemic period.

The payment service department of BB has withdrawn all type embargo including late payment charge and interests as the government withdrawn the movement restriction fully. 

 Besides, the BB notification has fixed person to person (P2P) monthly payment limit at Tk 0.2 million for MFS and the MFS can charge fee as per the operational guideline of mobile finance.