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BB re-fixes minimum period for term-deposits

  • Published at 07:47 pm December 1st, 2013

Bangladesh Bank has re-fixed minimum period for term-deposits to financial institutions at three months.

Previously, the minimum period for the deposits was six months.

The re-fixing comes to prevent funding crisis in the financial institutions, said a Bangladesh Bank circular issued on Sunday.

The circular said the depositors were previously allowed to have premature encashment after completion of six months of deposit.

After re-fixing, the premature encashment can be done after three months, it said.

“Financial institutions are going through funding crisis. To help them recover from such situation, the period for term-deposits has been re-fixed,” said Mahfuzur Rahman, executive director of Bangladesh Bank.