The High Court on Monday issued a rule asking why the interest rates on microloans provided by Grameen Bank should not be brought in line with those of commercial banks.
The rule was issued by a High Court bench headed by Justice Khizir Ahmed Chowdhury following a writ petition filed in the public interest.
Barrister Masud R Sobhan and Barrister Fatema Chowdhury represented the petitioners during the hearing.
The court also asked why the regulatory authorities of banking and financial institutions should not be directed to reduce the interest rates charged under Grameen Bank’s microcredit program for landless borrowers in rural Bangladesh.
The petition argued that the interest rates are excessively high and exploitative compared to those charged by commercial banks.
Earlier, Barrister Masud R Sobhan filed the writ petition seeking alignment of Grameen Bank’s microloan interest rates with prevailing commercial bank rates.
