Bangladesh Bank (BB) has instructed all banks to transfer the interest or profit for the month of April and May against the existing loans or investments to transfer an interest free blocked account and not to show it in its income account.
The central bank instructed it considering the inconvenient situation caused due to Covid-19, as per a BB circular issued on Sunday, reports BSS.
Until further notice, bank cannot impose this two months’ interest from the borrowers, the circular added.
If any bank has already transferred the interest or profit to their income account, it has to be adjusted through reserve entry.