Dhaka, Bangladesh (BBN)– Banks that failed to bring down their interest rates on lending to 9.0 per cent will not be eligible for receiving government’s annual development programme fund.

They will also not be able to get savings or funds from autonomous and semi-autonomous government institutions, according to a notification, issued by Financial Institutions Division of the Ministry of Finance on Monday.

The state-owned enterprises (SoEs) have also been advised to deposit their funds with the banks and selected non-banking financial institutions (NBFIs) at maximum 6.0 per cent.

The government’s latest move comes as a strong measure to compel banks to lower down interest rates on lending to 9.0 per cent, as committed to the government earlier.

The country’s business community has long been complaining of double digit interest rates, what has been seen as one of the key reasons behind lagging private sector investment in Bangladesh.