Connect with us

Bank-Insurance

BB Lowers Age Limit for MFS Accounts

Published

on

BB share bangladesh loan

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.

Share this

Bank-Insurance

Banks in Industrial Areas to Open June 14-16 for Eid Payments

Published

on

cenbank Monetary Policy bangladesh bank central imf reserve BB

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.

Share this
Continue Reading

Bank-Insurance

Cenbank Mandates Real-Time Reporting of Willful Defaulters

Published

on

bank

The Bangladesh Bank (BB) has issued new instructions to banks to submit data on willful defaulters to the Credit Information Bureau (CIB) database. This directive was issued on Tuesday, requiring immediate compliance from commercial banks and non-banking financial institutions (NBFIs).

In a circular released by the CIB of the central bank, banks have been instructed to report their June data in real-time starting July 1. The circular has been sent to top executives of banks for prompt execution.

This move follows an earlier initiative by the BB, outlined in a circular on March 12, aimed at identifying willful defaulters within the banking sector. The central bank also detailed actions to be taken against such defaulters.

According to the circular, any client who takes a loan anonymously and misuses it will be classified as a willful defaulter. Banks were directed to establish a ‘willful defaulter identification unit’ by April 9 to facilitate this identification process.

The circular further stipulates penalties for non-compliance. Banks that violate these conditions will face fines ranging from Tk 50 lakhs to Tk 1 crore. Continued violations will incur additional fines of Tk 1 lakh per day.

Share this
Continue Reading

Bank-Insurance

Cenbank Raises Dollar Price to Tk 117

Published

on

bank bb cenbank

The Bangladesh Bank has adjusted the dollar price to Tk117 from Tk110 by introducing the crawling peg exchange rate mechanism.

Under this new approach, the bank will buy and sell dollars with Tk117 as the mid rate.

This decision was reached during a meeting of the monetary policy committee on Wednesday, May 8th.

Additionally, the committee has opted to discontinue the SMART lending rate mechanism, allowing banks to set their lending rates based on dollar demand and supply, according to a circular issued after the meeting.

The crawling peg system permits a currency with a fixed exchange rate to fluctuate within a specified band of rates, combining features of both fixed and floating exchange rate regimes.

On May 5th, Bangladesh Bank Governor Abdur Rouf Talukder announced the adoption of a market-based interest rate and the implementation of a crawling peg system to stabilize the foreign exchange rate.

He stated that the central bank is collaborating with prominent economists and bankers to devise a contractionary monetary policy aimed at curbing inflation and restoring macroeconomic stability.

Earlier, on April 2nd, the World Bank stressed the importance of a crawling peg mechanism aligned with market-clearing exchange rates to narrow the gap between formal and informal exchange rates, as outlined in the latest Bangladesh Development Update report.

Meanwhile, the International Monetary Fund (IMF) has advocated for a market-based dollar rate. In January 2023, the IMF attached several conditions to a $4.7 billion loan facility over a three-and-a-half-year period. Bangladesh has received two installments of the loan by fulfilling nearly all conditions, except for the reserve requirement.

Share this
Continue Reading