Ctg chamber concerned over banking service charges

The Chittagong Chamber of Commerce and Industry has urged Bangladesh Bank not to introduce new banking service fees or increase existing charges, warning that higher costs would further burden businesses and consumers amid ongoing economic challenges.

In a letter sent to Bangladesh Bank Governor Md Mostaqur Rahman on Wednesday, CCCI President Mohammed Amirul Haque requested the central bank to reject proposals submitted by banks seeking to impose new fees and raise charges on various banking services.

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Businesses believe additional banking charges would increase the cost of doing business, CCCI said, particularly for small and medium enterprises, and eventually push up prices for consumers.

The chamber noted that the economy is already under pressure from high production costs, weak private sector investment and sluggish business activity. At such a time, approving new banking fees and higher service charges would discourage investment and undermine efforts to revive economic growth, it said.

The business body also expressed concern over proposals to increase charges for services such as letters of credit (LCs), loan processing, loan settlements, cash withdrawals, balance confirmations and other banking services.

It urged Bangladesh Bank to retain the existing limits on cash withdrawal charges and maintain current fee-free balance thresholds, arguing that higher banking costs could discourage people from using formal banking channels and hamper the government’s drive towards greater financial inclusion and digital transactions.

“The current economic situation does not warrant additional financial burdens on businesses and the public. Instead, policies should support economic recovery and investment,” the chamber said in the letter.