We want to protect bank customers - BoB

The central bank recently instructed all commercial and statutory banks to stop charging early settlement penalties on customers who have given written notice of their intention to settle within 45 days. The directive effectively halves the period required to notify the bank of impending early settlement.

Customers were previously required to give 90-day notices. Most commercial and statutory banks penalised clients who failed to provide a 90-day notice of their intention to settle their loans before maturity and levied various other interest calculations on those who provided notice within 90 days.