Regulatory Alerts2022-01-25
Added
BRPD Circular Letter No. 04: Regarding salary of entry level officials and employees of bank-company
The Bangladesh Bank clarifies that Circular Letter No. 02 does not prohibit dismissing employees for incompetence or denying promotions for failing to meet deposit collection targets. The circular explicitly states that administrative actions, including dismissal or forced resignation, may be taken against officials and employees if there are specific and proven allegations, in accordance with the bank's own policies and rules. This directive aims to correct misinterpretations that previously suggested such actions were forbidden under the guise of incompetence.
BRPD Circular Letter No. 04 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. BRPD Circular Letter No. - 04 11 Magh 1428 Date: ----------------------- 25 January 2022 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the salary and allowances of entry-level officials and employees of bank-companies.
Reference is drawn to BRPD Circular No. 02 issued on 20 January 2022 on the above subject.
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The following instructions are provided in serial number 3.6 of the said circular: - "Employees of bank-companies shall not be deprived of promotion due to failure to achieve the set target or on the pretext of incompetence. Similarly, employees shall not be dismissed from service on such pretext, i.e., employees shall not be dismissed from service or forced to resign without any specific and proven allegation;"
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Some banks are creating obstacles in the implementation of the instructions of the said circular by providing misleading interpretations in a fragmented manner without carefully examining the matters mentioned in the aforementioned paragraph, which is not desirable.
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Now, to remove the created confusion and to clarify the instructions of the said circular, it is informed here that there is no such instruction in the aforementioned paragraph or anywhere in the circular that employees cannot be dismissed for incompetence or must be promoted for incompetence. If there are specific and proven allegations, no prohibition has been imposed on administrative actions against the accused officials and employees in accordance with the bank's own policy/rules.
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However, it has been instructed in the discussed paragraph that employees of bank-companies shall not be deprived of promotion or dismissed from service or forced to resign on the pretext of incompetence without failing to achieve the target of deposit collection only or without any proven allegation.
Yours faithfully,
(Md. Ali Akbar Farazi) General Manager Phone-9530095