The High Court has issued a rule asking why the interest rate of Grameen Bank’s microcredit should not be aligned with commercial bank rates.
A bench led by Justice Khizir Ahmed Chowdhury passed the order today (18 May) after a preliminary hearing of a public interest litigation.
In the rule, the court asked why the interest charged under Grameen Bank’s microcredit programme for landless borrowers should not be reduced, as it is allegedly much higher and “exploitative” compared to scheduled banks.
The court also sought to know why the banking regulator should not be directed to reduce such interest rates.
Barrister Masud AR Sobhan and Barrister Fatema Chowdhury argued for the petitioner.
Earlier, a writ petition was filed seeking alignment of Grameen Bank’s microcredit interest rate with that of commercial banks.
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