BRPD Circular Letter No. 04: Proper implementation of The Mandatory Jute Packaging Act, 2010

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. Ref No.: BRPD Circular Letter No. 04 Date: ------------------ May 15, 2017

To, Managing Directors / Chief Executive Officers All Scheduled Banks Operating in Bangladesh.

Dear Sir,

Regarding the proper implementation of "The Mandatory Jute Packaging Act, 2010"

Reference is invited to BRPD Circular Letter No. 12, dated October 12, 2015, on the subject cited above.

2. In accordance with the instructions of the aforementioned circular letter, the use of jute bags has been made mandatory for banks when providing, renewing, and distributing loans to business establishments/manufacturers and suppliers of rice, paddy, wheat, corn, fertilizer, and sugar, as prescribed by the rules under "The Mandatory Jute Packaging Act, 2010".

3. It is informed that during an inter-ministerial meeting held on April 09, 2017, regarding the proper implementation, monitoring, and future course of action of "The Mandatory Jute Packaging Act, 2010", it was decided to make the use of jute bags mandatory for banks when distributing loans to manufacturers and suppliers of chili, turmeric, onion, ginger, garlic, pulses, coriander, potato, flour, and bran/husk/chaff, in addition to the aforementioned products.

4. In this regard, instructions are hereby given to you to make the use of jute bags mandatory for banks when providing, renewing, and distributing loans to business establishments/manufacturers and suppliers of rice, paddy, wheat, corn, fertilizer, sugar, as well as other products such as chili, turmeric, onion, ginger, garlic, pulses, coriander, potato, flour, and bran/husk/chaff, prescribed by the rules under "The Mandatory Jute Packaging Act, 2010". It is further instructed that if the aforementioned establishments do not use jute bags for packaging products, banks shall not provide credit facilities to them, and you are instructed to inform them in writing.

5. To ensure proper compliance with these instructions, banks must submit reports on the information divided into the attached format (Annexure-A) to the Banking Regulation and Policy Department and the concerned Bank Inspection Department by the 15th of the following month, on a quarterly basis (based on December 31 and June 30).

Yours faithfully,

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

"Annexure-A"

Bangladesh Bank Head Office Dhaka.

Information regarding the progress of compliance with the instructions issued under BRPD Circular Letter No. 12, dated October 12, 2015, and BRPD Circular Letter No. 04, dated May 15, 2017, in the context of the proper implementation of "The Mandatory Jute Packaging Act, 2010":

............................... Date Basis

Name of the Bank: -----------------------------------------

Sr. No.	Name of Bank Branch	Name of Business Establishment/Manufacturer and Supplier of Rice, Paddy, Wheat, Corn, Fertilizer, Sugar, Chili, Turmeric, Onion, Ginger, Garlic, Pulses, Coriander, Potato, Flour, and Bran/Husk/Chaff	Date of Issuance of Circular / Subsequent Loan Provision/Renewal/Distribution	Amount of Loan (in Lakh Taka)	Whether the imposed condition has been made via BRPD Circular Letter No. 12, dated October 12, 2015, and BRPD Circular Letter No. 04, dated May 15, 2017?	Report on Compliance with Imposed Condition Regarding Use of Jute Packaging by Loan Borrowing Business Establishment	Remarks
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