Dhaka, Nov 3 (UNB) – The High Court on Sunday ordered the Bangladesh Bank to form a nine-member committee to submit recommendations after identifying the loopholes in disbursement and realisation of loans to prevent irregularities and corruption in the banking sector.
The court asked the central bank to form the committee with experts in banking and finance sectors, and take steps as per the recommendations to restore discipline in the sector.
The HC Bench of Justice JBM Hasan and Justice Khairul Alam passed the order after hearing a writ seeking formation of a commission to dig out corruption and irregularities in the banking sector that took place in the last 20 years.
The HC in its observation also said, “Interest rate in commercial banks should be brought down to single digit.”
The court also extended by three months more the validity of the central bank circular allowing loan defaulters to reschedule classified loans with 2 percent down payment.
It also directed the central bank to follow the 2012 master circular while providing fresh loans to defaulters intend to get rescheduling privilege.
Petitioner lawyer Manzill Murshid stood for himself, while Barrister Md Moniruzzaman for the Bangladesh Bank.
Bangladesh Bank lawyer Moniruzzaman said the central bank always takes suggestions from experts in different sectors and the directive of the HC will not hamper its activities.
Finance Minister AHM Mustafa Kamal at a programme on September 17 said punitive actions will be taken against anyone involved in default loans.
The amount of default loan has increased due to legal loopholes. “It won’t increase any more. Action will be taken against anyone involved in loan default,” he said.