NBFIs asked not to use BB cheques for lending
Mentioning the issue as illegal, the central bank’s observation said NBFIs are using Bangladesh Bank cheques to disburse loans to their customers
The Bangladesh Bank has asked the non-bank financial institutions (NBFIs) to abstain from using the central bank cheques for the disbursement of loans.
In this regard, the central bank instructed NBFIs in a circular issued recently.
Mentioning the issue as illegal, the central bank's observation said NBFIs are using Bangladesh Bank cheques to disburse loans to their customers.
Keep updated, follow The Business Standard's Google news channel
According to the circular, the central bank advised NBFIs not to disburse the loans in this process.
A central bank high official said it was a previous instruction for the NBFIs and the authorities have now made a reminder again as some of the NBFIs are doing such illegal practice for loan disbursements.
BB cheque is commonly used for NBFI's cash reserve ratio and statutory liquidity ratio and for the inter-bank settlement. So, in most cases, such malpractice creates cheque clearing difficulties.
Seeking anonymity, a NBFI official told The Business Standard, "We normally disburse loans from our own accounts with the banks concerned. We have no idea regarding the central bank's claim in disbursing loans to the customers using its cheques."
