Punitive actions sought against hidden-charge imposing banks [ Tritiyo Matra News ]

Punitive actions sought against hidden-charge imposing banks

Local November 30, 2015

Bankers on Sunday urged Bangladesh Bank to take punitive measures against the banks which are imposing hidden charges on clients violating the banking rules and regulations.
The request was made at an annual report publication programme by the BB’s financial integrity and customer services department at the central bank’s headquarters in Dhaka.
BB governor Atiur Rahman unveiled the report while senior officials of the central bank and scheduled banks were present.
Association of Bankers, Bangladesh president Ali Reza Iftekhar said the central bank should take punitive measures against the banks which imposed hidden charges without informing their clients.
He said that the BB should take proper measures in this regard so that no bank could impose hidden charges alongside its (bank’s) declared charges.
‘Imposing hidden charges by a bank is a major crime against its clients,’ Iftekhar, also the managing director and chief executive officer of Eastern Bank, said.
Banks now usually impose hidden charges for their consumer financing like credit card to earn undue profit, which is strictly forbidden by the central bank.
Consumer Association of Bangladesh chairman Golam Rahman said the central bank should take more initiatives to protect the interest of banks’ clients.
The BB should give more importance on prevention of hidden charge imposition by banks as the clients are being cheated, he said.
BB deputy governor SK Sur Chowdhury said the central bank had earlier issued a circular to all bank not to impose any charge on their clients in excess of their declared charges.
‘The central bank will conduct on-site supervision at the banks’ braches from the next year to examine whether they are providing accurate services to their clients.’
Atiur said that the BB would take strict measures against the banks which cheated their clients.
According to the FICSD report, the central bank received 3,930 complaints from clients of different banks in the financial year 2014-15.
Of them, all complaints were settled, it showed.
Highest 55.98 per cent of the complaints were made against private commercial banks, 28.13 per cent against state-owned commercial banks, 5.86 per cent against foreign commercial banks, 3.82 per cent against specialised development banks, 5.82 per cent against non-bank financial institutions and 0.39 per cent against NRB banks.
The top 10 banks in terms of the number of allegations faced in the FY15 are Sonali Bank, BRAC Bank, Rupali Bank, Agrani Bank, Islami Bank Bangladesh, Janata Bank, Bangladesh Krish Bank, Standard Chartered Bank, Dutch-Bangla Bank and National Bank.
The financial integrity and customer services department conducted 127 inspections in the FY15 to unearth financial corruptions in the banking sector.
The FICSD usually conducts inspection if it receives any allegation of financial corruption in banks.
The top seven banks in terms of the number of inspection faced are Agrani Bank, Farmers Bank, United Commercial Bank, Sonali Bank, NCC Bank, NRB Commercial Bank and Premier Bank.