People have right to know to whom banks are giving loans: HC

| Updated: December 01, 2022 20:55:30

People have right to know to whom banks are giving loans: HC

In the full text of a verdict the High Court said since bank money is people's money, they have the right to know to which person or organisation the bank or the financial institution is giving public money.

Therefore, along with each loan sanction, the sanction letter of the loan giving institution has been instructed to be published on the website of the concerned financial institution to inform the public, the verdict also read. 

The observation came into the full text of the verdict that ruled no bank or financial institution (FI) can file cheque dishonour cases against any person for defaulted loans.

Following an appeal petition filed over a cheque dishonor case of the BRAC Bank, the High Court bench of Justice Md Ashraful Kamal delivered the verdict on November 23 this year, while the full text was released on Thursday (December 1).

However, the Appellate Division of the Supreme Court on Thursday stayed this verdict for two months.

A five-member bench of the Appellate Division headed by Chief Justice Hasan Foez Siddique passed the order after hearing three separate petitions filed by BRAC Bank against the High Court verdict.

The High Court said the sanction letter should describe in detail the manner in which financial institutions will collect defaulted loans.

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