Dhaka, Jul 15 (V7N)- Banks have proposed increasing charges for several services, including account maintenance, loan processing, solvency certificates and pay order issuance, citing rising operational costs and expanding service ranges.
According to the proposed changes, customers may have to pay additional fees for withdrawing money from savings accounts more than three times a month. The proposal has raised concerns among customers and businesses, especially regarding the possible impact on financial transactions.
The proposed changes could increase costs for importers and exporters as well. While opening letters of credit (LCs) is currently free in many cases, the new proposal suggests charging Tk 2,000 for the service. Fees for LC amendments, document endorsements and LC cancellation applications have also been proposed. In addition, export bill collection charges and bank guarantee commissions may be increased.
Bankers said the adjustment in charges has been proposed due to increased operational expenses, including higher rent, utility costs and other service-related expenditures.
Managing Director of Mutual Trust Bank Limited Syed Mahbubur Rahman said that costs associated with running banks have increased significantly compared to a decade ago.
"We are a commercial institution. At least to some extent, we have to cover our expenses. That is why we have requested Bangladesh Bank to consider some of the charges," he said.
However, financial analysts have expressed concerns over the timing of the proposal, saying the banking sector is already facing challenges and higher fees could discourage people from using formal banking services.
Former Chief Economist of Bangladesh Bank Dr. Mustafa K. Mujeri said that increasing non-interest income at this stage should be carefully considered.
He warned that higher service charges could increase people's reluctance toward banking services, which may negatively affect financial inclusion and efforts to build a cashless economy.
Bangladesh Bank Executive Director Arif Hossain Khan said the government and the central bank are working to create a cashless economy where people rely on digital wallets and banking services instead of holding cash.
He said imposing various charges at this stage could create hesitation among the public toward banks, and Bangladesh Bank would carefully review the proposal before making any decision.
Meanwhile, Bangladesh Bank believes that banks should focus more on strengthening interest-based income rather than relying heavily on non-interest income sources.
END/SMA/AJ
