BB questions 27 banks for exceeding forex limit in charts

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Bangladesh Bank yesterday asked 27 banks to explain why they had allowed their credit card holders to spend dollars above a limit set by currency exchange rules.

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

Md Serajul Islam, spokesman for Bangladesh Bank, said banks were instructed to respond within five working 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 when the anomalies were discovered.

The development came at a time when the country is facing a shortage of foreign exchange due to an escalation in import payments.

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 24 hours in advance before opening any LC of a minimum of $3 million to contain import payments.

Some 71 bank credit card holders spent between $12,500 and $20,000, ignoring the central bank’s $12,000 annual limit

In such a situation, credit card limit violations will not work well, the BB official said.

Earlier in April, the BB banned two Sikder Group officials and 10 Sikder family members from using international credit cards for two years because they exceeded their National Bank loan limits.

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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