Within the wake of some debtors and guarantors denying having been offered loans, Bangladesh Financial institution (BB) yesterday made it obligatory for banks to take thumbprints to make sure correct restoration of depositors’ cash, which was welcomed by bankers.
The central financial institution, citing Excessive Court docket observations, mentioned some writs have been filed within the latest interval the place debtors and guarantors denied having signed mortgage and guarantee-related paperwork.
For all latest news, follow The My News’s Google News channel. “Consequently, it has grow to be troublesome to substantiate the correctness of debtors and guarantors and it’s creating impediments to realising loans,” mentioned the BB.
To handle the complexity, the central financial institution directed banks to make it possible for loan-related paperwork, termed as cost paperwork, had been learn out to debtors, guarantors and associated third individuals or events.
On the similar time, banks should take signatures on mortgage paperwork together with thumbprints of each palms of debtors and guarantors, mentioned the BB.
Banks might want to settle for the thump impressions by verifying these with nationwide identification quantity database, mentioned the central financial institution.
“This shall be wanted for all sorts of loans. As soon as it’s carried out, none will have the ability to refute.
We’ve got launched this as a due diligence for banks and it will affirm identification of debtors,” mentioned a senior BB official.
“It’s a superb concept. It’ll be sure that they (debtors and guarantors) can’t refuse to take legal responsibility. It will assist bankers,” mentioned Selim RF Hussain, chairman of the Affiliation of Bankers, Bangladesh (ABB).
The thought of verifying thumbprints with nationwide identification knowledge preserved with the Election Fee is conceptually okay, mentioned Hussain, additionally managing director and CEO of Brac Financial institution Ltd.
“But it surely stays to be seen how this shall be carried out. If there’s a good course of to make sure verifications inside a short while, it is going to be good,” he mentioned.
That is prone to have a constructive influence on the discount non-performing loans, he mentioned.
The share of categorized loans or NPLs rose to eight.8 p.c of complete loans excellent as of March this 12 months from 8.16 p.c on the finish of December final 12 months.
Till March 2023, banks’ excellent credit score to the non-public sector amounted to Tk 1,446,800 crore, in line with the BB knowledge.