Regulatory Alerts2024-04-08
Added
BRPD Circular Letter No. 19: Obtaining NOC from the concerned authorities of electricity and gas suppliers in case of the bank loan
The document mandates that banks must obtain No Objection Certificates (NOCs) from relevant electricity and gas supply authorities before granting loans for new industrial establishments, excluding those located in Economic Zones or government-designated industrial areas. This requirement was decided by the Cabinet Committee on Economic Affairs on March 21, 2024, to ensure proper land and fuel management and environmental development. The directive is effective immediately and applies to all scheduled banks operating in Bangladesh.
Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-Reg.Policy-19 Banking Regulation and Policy Department BRPD Circular Letter No. 19 April 08, 2024 Date: -------------------- 25 Chaitra 1430
To, Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh
Dear Sir,
Regarding the context of obtaining No Objection Certificates (NOCs) from the concerned authorities of electricity and gas suppliers in the context of bank loan provision:
Industrial planning intended to ensure economic prosperity is of great importance. Establishing industrial units in specified locations makes it possible to ensure proper land and fuel management and environmental development. To this end, the following decisions were taken in the meeting of the Cabinet Committee on Economic Affairs held on March 21, 2024:
(1) Electricity and gas supply shall not be provided if new industrial units are constructed in any location other than Economic Zones or government-designated industrial areas; and
(2) Banks must obtain No Objection Certificates (NOCs) from the concerned authorities of electricity and gas suppliers before granting loans to new industrial units.
- This directive shall be implemented immediately.
Yours faithfully,
(Md. Harun-Ar-Rashid) Director (BRPD) Phone: 9530252