Bangladesh Bank on Sunday said that non-bank financial institutions would be able to collect term deposits from clients and institutions for three-month tenure instead of exiting six-month.
To this end, the BB issued a circular to managing directors and chief executive officers of all NBFIs saying that from now on they were able to collect deposit for three-month tenure from the clients and institutions.
Besides, a client of a NBFI will make premature encashment of his or her term deposit after three months of opening the account, the circular said.
Clients of the NBFIs earlier made premature encashment of their term deposits after six months of opening the accounts, the BB said.
A BB official told New Age on Sunday that a number of NBFIs had earlier requested the central
bank to reduce the tenure period of their term deposit products so that they would be able to mobilise funds easily.
Some NBFIs have been facing liquidity crisis for a long time as they could not receive the deposit from their clients like scheduled banks, he said.
For this reason, the BB reduced the minimum tenure period of the term deposits of the NBFIs, he said.
-With New Age input
