The Banks and Finance companies started to advertise their new promotions, gift schemes and attractive interest rates they offer in the mass media from the beginning of the “Awurudu Season”. An ordinary person going through those eye catching and attractive advertisements will make it very difficult to choose an institution to deposit his or her hard earn money. And on the other hand some have dark memories of having lost their money by invest in bogus institutions. The Central Bank of Sri Lanka is the governing body of all the finance institutions of Sri Lanka which conducts a mechanism to closely monitor those institutions periodically. The Central Bank of Sri Lanka often publishes the facts for the attention of general public depositing/borrowing money in and from financial institutions, both in printed and electronic media and also in www.cbsl.lk website. The following is the latest such notice published.
1.When depositing money ensure that the deposit taking institution is authorized to accept deposits. Further, read and understand the terms and conditions relating to deposits.
The main facts to be considered:
- Annual interest rate and annual effective interest rate
- Dates of interest payment or crediting of interest to the account
- Instances where interest will not be paid
- In the case of fixed deposits, the tenure of the deposit and conditions applicable if withdrawals are made before the maturity date
- llAdditional service charges and fees
2.When obtaining loans, read and understand the applicable terms and conditions of the loan.
The main facts to be considered:
- Monthly or annual interest payable
- Whether the interest rate is fixed or floating
- Method of calculation of such interest
- Tenure of the loan
- Number of installments
- Amount of the installment
- Dates of payment of the installments
- Terms and conditions applicable to collaterals and guarantors
- Conditions applicable if payments of installments are delayed
- Conditions applicable if loans are settled prior to the due date
- Additional service charges and fees
3.When transacting with an authorized institution the following steps should be taken:
- Clear your doubts regarding the transaction, terms and conditions before you enter into any transaction
- Complete applications or other documentation after reading them carefully
- Do not sign any blank documents
- Safeguard the personal identification numbers and correspondence relating to accounts, etc.
- Divulge the true facts to the authorized institution
- Notify any change in your address
- Notify any fraudulent or suspicious transactions to the authorized institution
- Discuss and make every effort to resolve any issues with the authorized institution first
If your issue has not been resolved as stated above, you may contact the following:
• The Financial Ombudsman at No. 143A, Vajira Road,Colombo 5. Tel: 011 2595624 – 5 , email: email@example.com
• Only in the case of issues relating to loans: Credit Counselling Centre at No. 58, Sri Jayawardenapura Mawatha, Rajagiriya.
Tel: 011 2887006, email: firstname.lastname@example.org
Please note that the above are only the salient facts with regard to your financial transactions. It is important to inquire about your transactions further.
Central Bank of Sri Lanka
No. 30, Janadhipathi Mawatha, Colombo 1
Tel: – 0112477100, 0112477098, 0112477128
Email: email@example.com, web-site: www.cbsl.gov.lk
Read all our finance category articles Here. Also you may interested to read following articles on investment opportunities in Sri Lanka.
An article summarizing fixed deposit interest rates in Sri lankan banks.
Guidelines for prospective investors who is looking to start a business in Sri Lanka
Invest you money in Gold for higher returns.
Comprehensive articles on benefits of NRFC accounts including housing loans, interest rates, etc
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