BRPD Circular Letter No. 02: Bank-Company (Amendment) Act, 2018

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. 25 Magh 1424 BRPD Circular Letter No. 02 Date: ----------------- 07 February 2018

Chief Executive All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding the Bank-Company (Amendment) Act, 2018.

The Bank-Company (Amendment) Act, 2018 (Act No. 4 of 2018) was enacted on January 28, 2018, and published in the Extra Gazette of Bangladesh on the same date. By virtue of the said Act, certain changes have been made to the provisions of Sections 3, 7, 8, 15, 15AA, 109, and 118 of the Bank-Company Act, 1991. A copy of the Gazette of the Bank-Company (Amendment) Act, 2018 is enclosed herewith for the information and compliance of all concerned regarding the amended provisions. Furthermore, it is also advised to present the Bank-Company (Amendment) Act, 2018 to the Board of Directors of your bank at their next meeting for information.

Enclosure: 01 (One).

Yours faithfully,

(Abu Farah Md. Naser) General Manager Phone: 9530252 Dn: B: 02.02.0000.000.00.000

Registered No. D A-1 Bangladesh Gazette Extra Issue Published by Authority Sunday, January 28, 2018

National Parliament of Bangladesh Dhaka, 15 Magh, 1424/28 January, 2018

The following Act, passed by Parliament, has received the assent of the President on 15 Magh, 1424 corresponding to 28 January, 2018, and is hereby published for general information:

Act No. 4 of 2018 An Act to further amend the Bank-Company Act, 1991

1. Short title. - (1) This Act may be called the Bank-Company (Amendment) Act, 2018. (2) It shall be deemed to have come into force on 15 Magh, 1424 corresponding to 28 January, 2018.

2. Amendment of Section 3 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 3, sub-section (3) shall be omitted.

3. Amendment of Section 7 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 7, sub-section (3) shall be omitted.

4. Amendment of Section 8 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 8, after sub-section (5), the following new sub-section shall be inserted, namely: "(6) The Central Bank may, by notification, prescribe the manner of maintaining the reserve fund under sub-section (2) of Section 26."

(929) Price: Taka 4.00

930 Bangladesh Gazette, Extra, January 28, 2018

5. Amendment of Section 15 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 15: (a) in sub-section (4), the words "and the Central Bank" shall be omitted; (b) in sub-section (10), the words "and the Central Bank" shall be omitted.

6. Insertion of new Section 15AA in the 1991 Act. - After Section 15 of the Bank-Company Act, 1991 (Act No. 14 of 1991), the following new Section 15AA shall be inserted, namely: "15AA. Power to exempt. - (1) The Central Bank may, by notification, exempt any banking company or class of banking companies from all or any of the provisions of the Banking Companies Act, 2017, subject to such conditions as may be specified in the notification. (2) The exemption granted under sub-section (1) may be revoked by the Central Bank at any time by notification. Explanation. - For the purposes of this Section, 'banking company' shall have the same meaning as in the Banking Companies Act, 2017."

7. Amendment of Section 109 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 109, sub-section (11) shall be omitted.

8. Amendment of Section 118 of the 1991 Act. - In the Bank-Company Act, 1991 (Act No. 14 of 1991), in Section 118, the word "shall" shall be omitted.

M. Abdur Rouf Deputy Secretary to the Government of Bangladesh.

Printed by Md. Abdul Malek, Deputy Director, Bangladesh Government Printing Press, Tejgaon, Dhaka. Published by Md. Alim Hossain, Deputy Director, Bangladesh Forms and Publications Office, Tejgaon, Dhaka. Dn: B: 02.02.0000.000.00.000