Banks, NBFIs asked not to impose late fees

Banks and non-bank financial institutions (NBFIs) have been asked to refrain from imposing fees or interest on delayed repayment of loan and saving scheme instalments and credit card bills between July 18 and July 25.

The central bank made the call by issuing two separate notices on Wednesday saying that clients might have missed such payments due to unrest in the country.

Banks and NBFIs have been instructed not to impose fees or interest if the clients clear their dues incurred from July 18 to July 25 by the end of this month, as per one central bank notice.

Stating that banks and NBFIs will not be able to cancel deposit schemes, the BB also asked them not to provide lower profits or interest than the rates declared earlier if clients fail to pay instalments.

The instruction, which was to come into effect immediately, will be applicable for all credit card customers, general loan borrowers and savers.

Amidst the internet shutdown and nationwide curfew, people have been unable to conduct online banking since July 18. A lot of ATM booths have been kept shut while others have run out of cash.

A good number of banks already have decided not to impose any interest or fees on clients for delayed payment of loan instalments, including that against credit cards, amidst a nationwide curfew and internet blackout.