BRPD Circular Letter No. 29: Exemption from the provision of section 26kha(1) of Bank Company Act, 1991 regarding general credit limit to electricity producing companies

BRPD Circular Letter No. 29: Exemption from the provision of section 26kha(1) of Bank Company Act, 1991 regarding general credit limit to electricity producing companies

Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.

BRPD Circular Letter No. - 29 11 Srabon 1429
Date: -----------------------
26 July 2022

Managing Director/Chief Executive Officer
All Scheduled Banks operating in Bangladesh.

Dear Sir,

Regarding the exemption from the provision of section 26kha(1) of the Bank Company Act, 1991 concerning the general credit limit restriction for electricity producing establishments.

A copy of Notification No.-BRPD(R-1)(Review)-717/2022-7483 issued by Bangladesh Bank on 26 July 2022 on the above-mentioned subject is enclosed herewith for your information and necessary action.

Yours faithfully,

Enclosure: 01 (One)

(Md. Ali Akbar Farazi)
Director (BRPD)
Phone-9530095

Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.

Notification
No.-BRPD(R-1) (Review)717/2022-7483 11 Srabon 1429 Date: ----------------------- 26 July 2022

In exercise of the powers conferred by section 121 of the Bank Company Act, 1991 (Act No. 14 of 1991), it is hereby notified for the information of all concerned that, in order to ensure uninterrupted supply of fuel and other raw materials required for electricity production, the prohibition contained in section 26kha(1) of the Bank Company Act, 1991 regarding the grant of loans by any bank to any individual, institution, or group in the said sector for importing fuel and other raw materials required for electricity production shall not be operative for the next 06 months. However, the Bangladesh Bank shall determine what the upper limit shall be for the next 06 months in place of the 25% upper limit specified in section 26kha(1) of the Bank Company Act, 1991.

(Abu Farah Md. Naser)
Deputy Governor
Bangladesh Bank