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NBFIs want withdrawal of 7pc interest cap on deposit

FBCCI president for equal policy support to both NBFIs, banks

  • Special Correspondent
  • 29 September, 2022 12:00 AM
  • Print news
NBFIs want withdrawal of 7pc interest cap on deposit
FBCCI President Md Jashim Uddin speaks at the first meeting of the FBCCI standing committee on Non-Banking Financial Institutions at FBCCI office in the capital on Wednesday.

Non-Bank Financial Institutions (NBFI) spoke against a 7 percent interest cap on deposits and wanted it to be withdrawn for a fair competition with banks.

They came up with the demand at the first meeting of the FBCCI Standing Committee on Non-Banking Financial Institutions held at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) premises in Dhaka on Wednesday.

Speakers at the meeting said that as per the instructions given by Bangladesh Bank, the NBFIs cannot offer more than 7 percent interest on deposit which is lower than the banks’ offer to their clients.

Therefore, the circular has put the NBFIs at an unfair competition with the banks and the central bank’s loan moratorium facilities are also applicable to only banks and thus these policies are discriminatory to the country’s NBFIs, the members of the committee added.

They urged the central bank to increase the size of the refinancing scheme for the NBFIs.

Expressing solidarity with the demand made at the meeting, FBCCI President Md Jashim Uddin said the country’s apex trade body will soon take the issue of cap on deposit interest to the table at the Bangladesh Bank.

“There should not be any discriminatory policies between banks and NBFIs,” he told the meeting presided over by Chairman of the Standing Committee Matiur Rahman. Among others, Director in-charge of the Committee S.M. Jahangir Alam (Manik), Co-chairmen Mominul Islam, Mohammed Jamal Uddin, Kanti Kumar Saha, other committee members, FBCCI Directors Md. Rejaul Kariem Rejnu, Bijoy Kumar Kejriwal and  Secretary General Mohammad Mahfuzul Hoque were present at the meeting.