No commissions against deposit schemes

The Bangladesh Bank (BB) on Sunday asked non-bank financial institutions (NBFIs) to refrain from mobilising deposits by offering off-the-books commissions to clients, which is against the law.

Certain NFBIs are offering commissions against their deposits schemes, on top of interest rates to attract investors, which is “illegal and unacceptable”, said the BB notice issued on the day.

Commissions on deposits raise the cost of fund collection, which affects interest rates on loans, according to the central bank.

In this context, the BB asked that NBFIs not pay any commissions or incur any business development costs in order to mobilise deposits. NBFIs were also instructed to keep their interest rates up to date on their websites at all times.

The instructions of the notice are to take effect immediately.