Thumb impression must on loan docs

The Bangladesh Bank (BB) has made providing thumb impression on loan documents mandatory.

The central bank said loan borrowers and guarantors would give thumb impressions of their both hands along with signatures for obtaining loans. The banks would verify these from the NID database.

Referring to the High Court's recent observation, a circular of the BB noted that many guarantors and borrowers denied that they did not sign loan documents.

In such a situation, the court had to depend on the signature, and it took time to prove whether the signature is genuine or not. As a result, the commercial banks faced troubles.

BB assistant spokesperson Md. Sarwar Hossain told the FE: "There were many instances in the past that the guarantors denied their signatures in the courts. The courts could not prove it, and loan recovery took time."

"We think that now both the borrowers and guarantors will read the loan documents carefully and sign and give their thumb impressions on these," he added.

Jasimharoon@yahoo.com