Regulatory Alerts2022-07-26
Added
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
The Bangladesh Bank exempts banks from the prohibition in section 26kha(1) of the Bank Company Act, 1991, regarding general credit limits for loans to individuals, institutions, or groups in the electricity production sector for importing fuel and other raw materials for a period of six months from July 26, 2022. While the standard 25% upper limit specified in the Act does not apply, the Bangladesh Bank will determine the specific upper limit for this six-month period.
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