Bangladesh Bank set to make bank services less costly

Customers will be able to take balance confirmation certificates from banks for free twice a year, according to a decision of Bangladesh Bank (BB).

Also, the banks will be allowed to charge only Tk 100 for a certificate to be used to open a beneficiary owner account, down from a rate that ranges between Tk 200 and Tk 500 now.

“The BB has taken the decision in consultation with the Bankers Association of Bangladesh (BAB) and Association of Banks, Bangladesh (ABB),” a senior official with the central bank told The Daily Star yesterday.

A circular is expected to come out today.

The central bank's directives asked all scheduled banks to rationalize its charges, fees and commissions, which businessmen say are too high.

Different banks charge customers for 51 categories of service in transactions, which, according to the BB, increases the prices of both export products and local consumer items.

BB officials said the banks take 25 types of charges and commissions for import-related transactions and 14 types for export transactions. In addition, 12 types of fees are charged for local transactions.

The new BB directives said the banks must issue balance confirmation certificates for free twice a year. "If anyone asks for a statement more than twice a year, they may be charged a maximum of Tk 200," the BB said.

The central bank lifted charges on foreign correspondence (local part) and cancellation of letters of credit (LCs) or expired LCs.

Costs of mailing, courier, telex and SWIFT must be on the basis of actual expenditure for LC transmission, amendment, confirmation, cancellation and foreign correspondence charge, according to the BB instructions.

The central bank also reset the quarterly commission for LC opening at 0.50 percent.

LC advising charges may be a maximum of Tk 1,000 and the charges for LC acceptance will be 0.40 percent on a quarterly basis. The charges for issuing back-to-back LCs, C&F certificates and certificates for realization of export prices have been set at Tk 500.

“Banks will be asked to send in a list of the charges and fees on a half yearly basis -- in July and January,” the draft of the circular said.

In case of any change in charges and fees, banks have to inform the related division about it and post information on banks' websites.

The BB could further rationalize the charges in consultation with banks, it said.

Although the BB cut some charges, it did not take any move on "high charges" for closing a bank account, customers said.

Earlier in a report, the central bank said a government-owned bank did not charge clients for account closure while private commercial banks charge from Tk 300 to Tk 500. Foreign commercial banks took as high as Tk 1,000.Source: The Daily Star, Dhaka, Bangladesh, September 30, 2008