NBFIs warned over attracting depositors via messages

Bangladesh Bank yesterday instructed non-bank financial institutions (NBFIs) not to send text messages through mobile phones to attract deposits.

Such activities have created an 'embarrassing situation' among professionals and clients, the BB said. Some NBFIs have been offering higher returns against deposits by sending texts through mobile phones, according to a central bank circular.

It is not expected to run this kind of marketing activities, it said. The financial institutions act does not allow the non-banks to mobilise deposits through such means.

The NBFIs are only allowed to display the interest rate, charge, commission and fee of the loan products through their branches and websites as per a central bank circular issued in April this year.