Staff Reporter :
A writ petition has been filed with the High Court challenging the legality of the Bangladesh Bank (BB) notification that instructed all the scheduled banks of the country to fix a maximum 9.0 per cent interest rate on all loans except credit cards.
Md Mahfuzur Rahman, an apprentice lawyer, filed the petition on Sunday, said his counsel Barrister Syed Sayedul Haque Suman.
The central bank on February 24, 2020, issued a notification instructing all scheduled banks to fix a maximum 9.0 per cent interest rate on all loans except credit cards as part of the government initiative to bring down the lending rate to a single digit. The new instruction will come into effect from April 1, 2020, according to the notification, issued by the Bangladesh Bank.
Borrowers will have to pay an additional 2.0 per cent as panel interest along with the new rate if they become defaulters despite getting the facility, it added. The BB, however, kept unchanged the interest rate at 7.0 per cent for exporters.
The petitioner prayed to the court to issue a rule upon the respondents to explain as to why the direction issued by the Bangladesh Bank upon all the scheduled banks to charge interest or profit at a maximum rate of 9.0 per cent for all loans or investments but for those involving credit cards should not be declared illegal.
The petition also sought a stay order upon all operation of the direction issued by the Bangladesh Bank regarding maximum interest rate of 9.0 per cent till pending hearing of the rule.
Finance Secretary, Bangladesh Bank Governor and BB General Manager (Banking Regulation and Policy Department) have been made respondents in the petition.
The High Court bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir may hear the petition today (Monday).
The petition said Bangladesh Bank notification expressed no rationale behind directing all scheduled banks to charge interest rate at a maximum rate of 9.0 per cent.
Bangladesh Bank direction may severely affect the already suffering banking sector and such restriction on interest rate is unlawful and against establishment of financial policies and international practices of free market economy, added the petition.
