FBCCI for lifting interest cap on deposits for NBFIs

Non-Bank Financial Institutions on Wednesday demanded the withdrawal of the 7 per cent interest cap on deposit and equal policy support as banks.

They came up with the demand at the first meeting of the FBCCI standing committee on Non-Banking Financial Institutions held on at FBCCI in Dhaka.

As per the instruction given by Bangladesh Bank, NBFIs cannot offer more than 7 per cent interest on deposit which is lower than what banks offer to their clients, the speakers said. Therefore, this circular puts the NBFIs at unfair competition with the Banks.

Central Bank’s loan moratorium facilities are also applicable only banks and thus these policies are discriminatory to country’s NBFIs, members of the committee added.

They also urged the Central Bank to increase the size of the refinancing scheme for NBFIs.

“FBCCI will soon take the issue of cap on deposit interest to the table at the Central Bank,” FBCCI President Jashim Uddin said, expressing solidarity with the demand made at the meeting.

“There should not be any discriminatory policies between Banks and NBFIs,” he added.

Chairman of the Standing Committee Matiur Rahman chaired the meeting.

The Committee’s Director in-charge SM 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.