Bank-Insurance
BB Lowers Age Limit for MFS Accounts
Bangladesh Bank (BB) has recently implemented a significant policy change by reducing the age limit for opening mobile financial services (MFS) accounts, such as those offered by bKash and Nagad, from 18 years to 14 years. The relaxation in age restrictions specifically applies to individuals between the ages of 14 and 18 who hold Bangladeshi nationality and have parents or legal guardians who are also Bangladeshi citizens. This decision was communicated through a circular issued by BB.
To open an MFS account under this new provision, applicants are required to provide their birth certificate along with the National Identity Card number of their legal guardian. The account will be linked to the legal guardian’s MFS account, and the legal guardian must authenticate the applicant’s account.
It’s worth noting that under this revised policy, transfers or cash-ins into these accounts must be made through the legal guardian’s bank account, MFS account, card, or e-wallet, with agents or other MFS accounts not being allowed for this purpose, unlike the previous practice.
These accounts, designed for individuals aged 14 to 18, can be used for various financial transactions, including cash withdrawals, person-to-person transfers, mobile balance top-ups, utility bill payments, education fee payments, and merchant transactions. However, BB has imposed certain transaction limits to ensure responsible usage. For cash-ins, the daily limit is Tk 5,000, with a monthly limit of Tk 30,000. Cash-ins can be performed a maximum of five times a day and ten times a month.
For cash-outs, the daily limit is Tk 5,000, with a monthly limit of Tk 25,000. Similar to cash-ins, cash-outs can be conducted a maximum of five times a day and ten times a month. Person-to-person transfers have a daily limit of Tk 5,000 and a monthly limit of Tk 15,000, maintaining the same frequency restrictions.
For various payments, including utility bills and merchant transactions, the daily limit is Tk 5,000, and the monthly limit is Tk 20,000. These transactions can be performed three times a day and ten times a month.
It’s essential to note that the maximum balance allowed in these accounts for individuals aged 14 to 18 is Tk 30,000.
In light of the current situation, Bangladesh Bank has mandated that all banks and financial institutions refrain from charging additional fees for late payments of credit card bills and loan installments.
The central bank issued this directive through two separate notifications on Wednesday, providing a significant relief measure to the financially burdened.
Borrowers and credit card holders who were required to make payments during the curfew and public holidays now have until July 31 to settle their dues. Bangladesh Bank has explicitly stated that banks and financial institutions are prohibited from imposing any extra interest, penalties, or late fees for installments or credit card bills due between July 18 and 25. Furthermore, no savings schemes shall be canceled for non-payment of installments during this period.
The central bank’s notification acknowledges that many borrowers and credit card users have struggled to meet their payment deadlines due to the prevailing circumstances.
Additionally, numerous depositors have been unable to make timely deposits into various savings schemes, including the Deposit Pension Scheme (DPS). To address these challenges, the new guidelines will be in effect from July 18 to 25, covering dues on loans, credit card bills, and savings scheme installments.
According to the directive, if the outstanding loan and credit card payments are settled by July 31, any accrued interest, penalty interest, additional interest, excess profit, or late fees will be waived. Similarly, if savings scheme installments are paid by July 31, no late fees or penalties will be imposed.
Moreover, any interest, penalty, or late fee already collected on loans, credit cards, or savings schemes must be refunded or adjusted, as per the Bangladesh Bank directive.
The Bangladesh Bank (BB) has announced an extension for the payment period against imports of industrial raw materials from 180 to 360 days, a measure now set to remain in place until December 2024. This policy, initially scheduled to end in June of this year, has been prolonged to facilitate trade transactions, according to a BB circular issued today.
“To support trade transactions, it has been decided to extend the policy support until December 31, 2024. The extended usance period will not apply to imports under EDF loans, as previously stipulated. All other relevant instructions remain unchanged,” the circular stated.
To ensure timely payment of salaries and bonuses to garment industry workers before Eid-ul-Azha, the branches of banks in key industrial areas will remain open on a limited basis on June 14, 15, and 16.
The Bangladesh Bank (BB) issued a notification stating that bank branches in Dhaka metropolitan, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and Narayanganj will operate on these days to facilitate financial transactions for garment sector employees.
Typically, Friday and Saturday (June 14 and 15) are weekly holidays, and Sunday (June 16) will be closed for Eid. Despite these closures, the BB has mandated that banks in industrial regions stay open to manage the disbursement of wages and bonuses and facilitate the sale of export bills.
Additionally, bank branches in Chattogram metropolitan and industrial areas will also be open to support garment workers’ payments and the processing of export bills.
The BB has instructed banks to coordinate with local authorities to ensure adequate security at the branches during this period.
Eid-ul-Azha, one of the most significant religious festivals for Muslims, will be celebrated in Bangladesh on June 17.
