The central bank has set a ceiling on fees and charges from customers for buying government securities such as treasury bills and bonds. From now on, banks and financial institutions will be able to collect fees or charges from customers at the rate determined by Bangladesh Bank in return for providing services.
In a letter sent to the managing directors and chief executives of banks and financial institutions on Monday, Bangladesh Bank said that the fees or charges for providing various services have been determined considering the interests of banks and financial institutions providing customer services and investors.
According to the letter, a maximum fee of Tk 200 from individual investors and a maximum of Tk 500 from non-individual or institutional investors can be charged for opening BPIDs other than BPIDs opened by Bangladesh Bank for stock exchange investors.
A maximum fee of Tk 200 from individual investors and a maximum Tk 500 from individual or institutional investors can be charged for each successful bid by participating in the primary auction. However, a maximum fee of Tk 200 can be charged in case of submission of bid through Omnibus BPID by stock exchange brokerage.
Individual investors can be charged a maximum fee of Tk 100 per transaction for secondary trading. A maximum of 100 Taka can be taken from individual or institutional investors for this service.
Individual investors can be charged a maximum of Tk 200 for BPID maintenance in a calendar year. In this case, a maximum of Tk 500 can be taken from individual or institutional investors.
Apart from this, individual investors have to give one certificate free of cost in the year for issuing income tax certificate. However, a maximum of Tk 200 can be charged for each additional certificate. On the other hand, the bank will issue one certificate annually free of charge to individual or institutional investors. A maximum of 500 Taka can be charged for each additional certificate.
These fees and charges include value added tax or VAT.
Bangladesh Bank’s letter said that apart from those five types of services, no fees or charges can be imposed in providing other services related to government securities, such as profit/coupon/principal payment, allotment/holding report, closure of BPID etc.
