Bangladesh Bank is going the extra mile to help borrowers deal with the financial losses caused by the coronavirus pandemic. Interest on their loans has been slashed, they won’t even be considered defaulters if they delay on repayments. No fines or compound interest will be imposed on credit card holders for delayed payments either.
However, Bangladesh Bank has taken no initiative regarding depositors though the banks run on depositors’ money and use their deposits to provide loans. Many depositors have been unable to go to the bank to make deposits on their monthly saving schemes or DPS, but the central bank has not addressed this problem. As a result, the depositors may have to pay fines for late deposits or they may get less interest on their deposits because of this delay.
Dhaka Bank has 120,000 DPS accounts. Its managing director Emranul Huq said that the depositors have been given a three-month fine-free extension for making their deposits. This has also lowered pressure on the bank’s branches.
While the central bank remains disinterested in depositors, many banks have come forward on their own accord to facilitate the depositors by extending provisions for delayed deposits. The state-run banks which have provided such facilities are Sonali Bank, Janata Bank and Rupali Bank, while the private sector ones are EXIM Bank, Mercantile Bank, Social Islamic Bank, National Bank, Dhaka Bank, Jamuna Bank and a few others.
Managing director of Jamuna Bank, Mirza Ilyas Uddin said, “We have extended a provision to our depositors allowing for a three-month delay on deposits. They will not be charged any fine for this nor will their interest be cut. The bank has around Tk 70 billion deposited in 30,000 DPS accounts.
Dhaka Bank has 120,000 DPS accounts. Its managing director Emranul Huq said that the depositors have been given a three-month fine-free extension for making their deposits. This has also lowered pressure on the bank’s branches.
Islami Bank has around Tk 120 billion deposited in 1.7 million DPS accounts. It has already provided its depositors with a three-month extension on their deposits. The bank’s deputy managing director Abu Reza Md Yahya said, “We had already extended this provision so we didn’t have to take any new decision in this regard.”
Dutch-Bangla Bank’s managing director Abul Kasem Mohammed Shireen said, “We have less DPS scheme clients and deposits. But if necessary, we will extend such provisions to them.”
Most of the DPS scheme clients are of the middle and lower middle class. They pay monthly deposits ranging from Tk 500 to Tk 100,000. They can eventually withdraw these saving with good interest. The income of many of these persons has decreased or even come to a halt because of coronavirus.
Spokesperson of Bangladesh Bank, Sirajul Islam, told Bangladesh Bank, “The banks can take these decisions themselves. If necessary, the central bank will take a decision in this regard.”
In the meantime, depositors are not getting their money back from several financial institutions including People’s Leasing, BIFC, International Leasing, FAS Finance and others. The central bank has taken no measures regarding these institutions. Many depositors have contacted this correspondent, asking for government initiative to recover their money.
