Banks can't take fees from job applicants

Bangladesh Bank yesterday directed all banks not to take any fee in the form of pay orders or bank drafts from job applicants.

It came to the notice of the central bank that some banks are realising such fees, defying the regulator's earlier request of not charging the applicants, the BB said in a circular.

So, the regulator decided to impose the ban on such fees and warned the banks of stern action if they are found to be collecting the fees, a high official of BB said.

In another directive, the BB asked financial institutions not to extend loans and leases repeatedly in the name of loan restructuring.

The loans can be restructured only for 'standard' and 'special-mention accounts'. "A restructure plan or extension of time has to be approved by the authority."

Meanwhile, the central bank also plans to undertake a new initiative to protect the interest of customers.

BB Governor Atiur Rahman yesterday talked about the plan at a seminar on "protection of customer rights in banking and the financial sector of Bangladesh" at the office of Bangladesh Institute of Bank Management.

Consumer consciousness is of utmost importance to protect their rights, he said. Rahman also stressed the need for financial literacy and demand-driven research.

The central bank firmly believes that financial knowledge is the key to protecting consumers' rights, he added.

A diverse financial education initiative has also been undertaken by BB across the country.