Bangladesh mobile phone users to pay more

File photo: Wall Street Journal

Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked the non-banking financial institutions (NBFIs) to refrain from sending short message service (SMS) through mobile phone, offering high interest rate, to collect deposit.

“The central bank has directed the NBFIs to stop sending SMS, offering high interest rates for attracting people, including professionals, to collect deposit,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.

The NBFIs have already published their respective interest rates on both lending and deposit on websites, the BB official explained.

The central bank of Bangladesh issued a notification in this connection on Tuesday, asking the chief executive officers and managing directors of NBFIs to maintain the instruction for deposit collection.

The instruction came five days after advising the NBFIs to fix interest rate on deposit at a reasonable level for ensuring stability in the country’s financial sector.

On June 21, the central bank asked the NBFIs to fix interest rate at a reasonable level.

On June 20, Bangladesh Association of Banks (BAB) Chairman Nazrul Islam Mazumder at a meeting said many insurance and leasing companies offer more than 12 per cent interest on deposit.

“This must be stopped. Otherwise, depositors will move to those companies,” the BAB chief noted.

Currently, 34 NBFIs are running their business in Bangladesh.