After late fee waiver, Bangladesh Bank has ordered all banks not to charge interest on credit card bills payable from Mar 15 to May 31 as the COVID-19 crisis drags on with a surge in number of cases.
The banks will need to refund or adjust the interest they have already charged in this period, the central bank said in a circular on Wednesday, reports bdnews24.com.
The banks had earlier been asked to waive late fees and not to charge extra fees, but they were still charging compounding interest on dues, which is “unacceptable during such a crisis”, the central bank said.
Bangladesh Bank spokesperson Serajul Islam said it issued the order following media reports on the issue.
The central bank, on April 4, waived fines for falling behind on credit card payment until June due to the coronavirus outbreak, but after a few days the banks said customers would still need to pay interest.
The customers said the central bank waiver of late fees will not have the intended impact if they needed to pay in time to avoid being charged for interest.
Banks are operating for limited hours while people are advised to stay at home during the lockdown.
“People are housebound to save their lives. It is impossible for many to pay fines or extra fees on credit cards in this situation. Bangladesh Bank considered the overall situation to make the decision,” its Executive Director Abu Farah Md Naser said.