The High Court has issued a rule asking the authorities concerned why the circular of Bangladesh Bank (BB) on 9% interest rate should not be declared illegal.
The bench of Justice Abu Taher Md Saifur Rahman and Justice Md Zakir Hossain came up with the rule on Tuesday following a writ petition.
The court has asked the respondents including the Bangladesh Bank to reply to the rule within the next four weeks.
Supreme Court lawyer Barrister Syed Sayedul Haque Sumon filed the writ on Sunday on behalf of an apprentice lawyer Mahfuzur Rahman, challenging the effectiveness of the central bank circular that set the interest rate on bank loans at 9% from April 1.
On Monday, the bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir refused to hold a hearing on the petition as it had no jurisdiction to hear bank related issues.
The judges told the petitioner to move the same petition to another bench having jurisdiction to hear such matters.
According to the writ petition, the central bank circular had no directives on the deposit rate, which might put at least two crore depositors at risk.
On February 24, Bangladesh Bank asked scheduled banks to charge no higher than 9% interest against all types of lending, barring credit cards.
In its circular, the central bank said the current high bank interest rate regime was weighing on the country's small, medium, and large industries badly.