Bangladesh Bank has fixed the interest rate at minimum 7 per cent on deposits and maximum 11 per cent in lending for non-bank financial institutions (NBFIs) like banks.

The central bank issued a notification on Monday in this regard and sent to the top executives of all the NBFIs asking them to effect the instruction from July 1, 2022.

The BB notification stated that some NBFIs are providing higher interest rates on deposits along with charging higher interest rates on lending, which is not investment friendly at all.

Also read: BB to fix interest rates for NBFIs too

“To bring an unified system for NBFIS in deposit collection and lending the central bank set a rational interest system to minimize the cost of fund as well investment,’ the BB notification said.

The interest rate/profit will be effective on the deposit and lease or lending since the execution date of the instruction while the interest / profit on earlier collected deposit will be as per the condition. The new rate of interest/ profit will be effective after end of its tenure.

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