Bangladesh Bank on Sunday directed all banks to write loan sanction letter in Bangla so that borrowers can understand the terms and conditions of the loan agreements clearly.
The BB issued a circular in this regard saying that the directive would be effective from July 1.
According to the circular, the BB found that most of the banks in the country composed forms and issued letters including loan approval letter in English to their clients.
Borrowers require understanding clearly the terms and conditions written in the agreement papers as they are bound to follow the conditions by law, it said.
If the loan approval letter is written in Bangla, it would be convenient for the customers in general and would keep banking activities transparent, the circular said.
The BB directed the banks to write loan sanction letters in Bangla to protect the interests of the customers and to implement the Bengali Language Introduction Act, 1987 under the Article 3 of the constitution of the People’s Republic of Bangladesh, it said.
As per the act, except in the case of foreign relations, in all other cases records and correspondences, laws, proceedings in court and other legal actions must be written in Bangla.
The banks can also use English alongside Bangla in writing loan sanction letters, the circular said.
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