9% interest rate on loans: HC refuses to hear petition challenging BB decision

A High Court bench today refused to hold hearing on a writ petition that challenged the legality of Bangladesh Bank's decision which instructed the scheduled banks to set a maximum nine percent interest rate on all loans except credit cards.

The bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir also dropped the petition from its cause-list, saying that this bench has no jurisdiction to hear such a matter involving bank related issues.

The judges, however, said the petitioner has the liberty to move the same petition before another HC bench having jurisdiction to hear the matter. 

After the bench passed the order, petitioner's counsel Syed Sayedul Haque Suman placed the writ petition before another HC bench of Justice Abu Taher Md Saifur Rahman and Justice Md Zakir Hossain for its hearing.

The bench led by Justice Abu Taher Md Saifur Rahman said the writ petition will be included in its today's cause list for hearing, Barrister Suman told The Daily Star.

On Sunday, Md Mahfuzur Rahman, an apprentice lawyer, submitted the writ petition to the HC challenging the legality of BB decision that instructed the scheduled banks to set a maximum nine percent interest rate on all loans except credit cards

In the writ petition, Mahfuzur Rahman said the central bank's decision may severely affect the already suffering banking sector and such restriction about reducing the interest rate is unlawful against establishment of financial policies and international practices of free market economy.