Saturday, June 28, 2025
  • Webmail
  • Contact Us
  • About BBS
  • Privacy & Policy
ENG
DZO
BBSCL Logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
Radio Live
No Result
View All Result
BBSCL logo
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule
No Result
View All Result
BBSCL logo
Radio LIVE

Standard method of interest calculation for all banks

August 13, 2010
in Uncategorized
Reading Time: 2 mins read
0
0
SHARES
26
VIEWS
Share on FacebookShare on Twitter

Beginning September 1, all financial institutions in the country will have to follow a standard method of interest calculation. The revised regulation comes from the Royal Monetary Authority (RMA) after several clients complained of different ways of interest calculation and variation.

According to the new regulation all banks will not be allowed to compound- which means they cannot add the interest to the principal and earn interest from the new amount.

Capitalisation of interest and late fee shall not be allowed as well. The RMA, however, says that the banks may impose a maximum of 5% per annum on the defaulted amount instead of compounding.

Such problem, the RMA says, are also because the fault of the consumers who often rush through to get their loan sanctioned.

However, RMA, as a regulatory body after sending their supervisors to the banks verified the problem and then called for a meeting of the banking officials.

While some agreed that there were incidences of compounding, some said it is hard to avoid in some cases such as over draft loans.

The Chief Executive officers (CEO) of the Bank of Bhutan and the Bhutan National Bank, however, welcomed the new regulation and said this would bring about uniformity in the financial institutions.

The Druk Punjab National Bank has a different say. They are not happy with the new policy. The CEO, N.K. Arora said defaulters should be penalised and incentives be given to the regular tax payers.

The CEO, however said, they will have to comply with the regulators whether they like it or not. Tashi Bank was not available for comment.

The RMA will be carrying out ad hoc inspections to see that the commercial banks are in compliance with the new regulation.

In case of non-compliance they will be liable to pay the highest rate of lending on the amount capitalised or compounded to the clients.

Previous Post

Grooming aspirant women candidates

Next Post

His Majesty grants audience to India’s National Security Advisor

Next Post

His Majesty grants audience to India’s National Security Advisor

Power tariff revised from August

Bathpalathang airport will not complete on time

Please login to join discussion

RECOMMENDED NEWS

PM meets Ambassadors of South Korea and Australia

PM meets Ambassadors of South Korea and Australia

10 years ago
1

Exorbitant electricity bills shock people of Lhuentse

11 years ago
1
Over Nu 800 M in ESP loans disbursed to nearly 1,300 applicants nationwide

Over Nu 800 M in ESP loans disbursed to nearly 1,300 applicants nationwide

1 month ago
94
Drukair to start flying to Gelegphu

Two more test positive for COVID-19- total confirmed case to 23

5 years ago
1

BROWSE BY CATEGORIES

  • Accidents (14)
  • Agriculture (439)
  • Announcement (179)
  • Audience Survey Report (1)
  • Business (759)
  • Crime/Legal (370)
  • Culture (48)
  • Development (57)
  • Disaster (57)
  • Economy (289)
  • Education (419)
  • Entertainment (16)
  • Environment (66)
  • Feature (65)
  • Featured (6)
  • Festival (81)
  • GMC (14)
  • Headlines (5)
  • Health (630)
  • Legal (53)
  • Literature (9)
  • Livestock (76)
  • Media (26)
  • Other Stories (5,687)
  • Politics (419)
  • RCSC (1)
  • Recent stories (6)
  • Religion (45)
  • Sci/Tech (712)
  • Social (548)
  • Sports (456)
  • Technology (191)
  • Tourism (22)
  • Uncategorized (13,868)
  • Video (141)
  • Video Story (257)
  • Wildlife (42)

BROWSE BY TOPICS

Tender Announcement Vacancy Announcement

POPULAR NEWS

  • BPC’s investigation rules out transformer short circuit as Damchhu forest fire cause

    Viral video of Bhutanese man assaulted by locals and police in Jaigaon sparks safety concerns

    0 shares
    Share 0 Tweet 0
  • Gelephu Mindfulness City opens recruitment drive for Bhutanese professionals

    0 shares
    Share 0 Tweet 0
  • A centenarian’s recipe to longevity

    0 shares
    Share 0 Tweet 0
  • 40 companies risk closure over failure to submit financial reports

    0 shares
    Share 0 Tweet 0
  • Post-mortem confirms foul play: Progress in investigation of 24-year-old woman’s death

    0 shares
    Share 0 Tweet 0
BBSCL

Bhutan Broadcasting Service (BBS) is Bhutan’s primary national broadcaster, delivering diverse news and entertainment in multiple languages, fostering cultural understanding and public knowledge.

Follow us on social media:

Recent News

  • Lead exposure may be contributing to high anaemia levels among children in Bhutan
  • MoIT imposes moratorium on issuance of taxi driving licence
  • Book on temples and monasteries of Trongsa’s Drakteng wins Dzongkha Booker Prize
  • Shumar Cheden Tshephel Detshen becomes self-reliant with own milk processing unit
  • Fire risk from phones at fuel depot low but never non-existent

News Category

  • Accidents
  • Agriculture
  • Announcement
  • Audience Survey Report
  • Business
  • Crime/Legal
  • Culture
  • Development
  • Disaster
  • Economy
  • Education
  • Entertainment
  • Environment
  • Feature
  • Featured
  • Festival
  • GMC
  • Headlines
  • Health
  • Legal
  • Literature
  • Livestock
  • Media
  • Other Stories
  • Politics
  • RCSC
  • Recent stories
  • Religion
  • Sci/Tech
  • Social
  • Sports
  • Technology
  • Tourism
  • Uncategorized
  • Video
  • Video Story
  • Wildlife
  • Webmail
  • Contact Us
  • About BBS
  • Privacy & Policy

© 2024 BBSCL. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Business
  • Politics
  • Sports
  • Education
  • More
    • Announcement
    • Audience Survey Report
    • Programme
    • Radio Dzo-Channel Schedule
    • Radio Mix-Channel Schedule

© 2024 BBSCL. All rights reserved.