27 banks asked to explain failure to meet card’s currency spending limit

Bangladesh Bank today asked 27 banks to explain why they allowed their credit card holders to spend dollars above the limit stipulated by the exchange rules.

Some 71 bank credit card holders spent between $12,500 and $20,000, ignoring the central bank’s limit of $12,000 for a year.

The development has surfaced at a time when the country is facing a shortage of foreign exchange due to skyrocketing import payments.

Md Serajul Islam, spokesman for Bangladesh Bank, said banks were instructed to send a response to the central bank’s letter within five days.

A BB official, speaking on condition of anonymity, said the central bank had recently carried out inspections at several banks on their use of dollars where the anomalies were revealed.

The BB recently asked banks to impose a 100% margin on the opening of Letters of Credit (LC) for non-essential items, which means importers must prepay all payments to customers in full. ‘import.

In addition, the central bank has also requested banks to notify it within 24 hours to open letters of credit exceeding $3 million in favor of an importer to contain import payments.

In such a situation, customers’ exceeding credit card limit of foreign currency quota is not a good example at the moment, the BB official said.

Earlier in April, the BB banned 10 Sikder family members and two Sikder Group officials from using international credit cards for two years because they took out loans from the National Bank in excess of their credit card limit, in clear violation of banking rules.

The lender gave them $10.58 million (about Tk 91 crore), exceeding the credit card limit set by the central bank.

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