The central bank today lowered charges on the deposits and loans, bringing an end to the excessive fees and commissions levied by many banks on customers.
In a new development, clients will be able to open a savings account with an initial deposit of Tk 500 and a current account with Tk 1,000.
The Bangladesh Bank decision came after some banks asked clients to keep an unusual amount of deposits in their accounts.
The central bank also cut some service charges.
For instance, a borrower earlier had to count 2 per cent of the outstanding loan amount for an early settlement of a credit.
Now, clients will pay 0.50 per cent in charge if they settle it early, according to a central bank notice.
Banks will not be allowed to impose any early settlement fees on the loans disbursed to cottage, micro, small and medium enterprises (CMSMEs).
For the disbursement of loans up to Tk 50 lakh, lenders can charge a maximum of 0.5 per cent in the processing fee. The fee will not go past Tk 15,000.
If the loan amount is more than Tk 50 lakh, the processing fee can be 0.3 per cent, and the amount will not be more than Tk 20,000.
Banks cannot impose any loan application fee.
Businesses in the CMSMEs and the farm sector will be allowed to reschedule their default loans without any charge.
During rescheduling loans, other sectors will pay a maximum of 0.25 per cent of their outstanding loans. The amount will not be more than Tk 10,000.
Banks earlier imposed loan application and rescheduling fees on their own, creating a burden for the clients, a central bank official said.
Lenders will have to provide a balance confirmation certificate, or bank statement, to clients twice a year free of cost. After that, clients will have to pay Tk 100 for each statement.
Some banks now charge up to Tk 500-Tk 700 for the issuance of such certificates.
Banks cannot impose any charge to activate dormant accounts.
Clients will make a payment of a maximum of Tk 200 to collect a solvency certificate.
Banks will not be allowed to charge more than Tk 200 to close saving accounts and Tk 300 for current accounts. But, such charges will not be applicable to the accounts owned by marginalised people, freedom fighters, and street children and so on.
Beneficiary owner (BO) account-holders will secure a BO certificate by paying Tk 100.
Clients will pay a fee of Tk 50 to transfer an account from one branch to another within the same district. But, the charge will double if clients move an account from one district to another.
Banks have been banned from imposing any charge in the form of minimum balance fee, incidental charge, ledger, and counter-charge fee.
The central bank has kept unchanged the account maintenance fee. There will be no maintenance fee for the accounts with a deposit of up to Tk 10,000.