BRPD Circular Letter No. 30: Suspension/ Reduction of Operational and Development Expense

Bangladesh Bank Chief Controller's Office Motijheel, Dhaka-1000 Bangladesh. Ref No: BRPD Circular Letter No. 30 27 July 2022 Date: ---------------- 12 Sraban 1429

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

Dear Sir,

Regarding Suspension/Reduction of Operational and Development Expenses.

In the context of the current difficult economic situation, the Government has decided to suspend/reduce operational and development expenses in certain sectors for the fiscal year 2022-23. In this regard, you are hereby instructed to duly comply with the following matters for the purpose of suspending/reducing operational and development expenses in certain sectors during the remaining 06 months of the calendar year 2022 (from July/2022 to December/2022) and the first 06 months of the calendar year 2023 (from January/2023 to June/2023):

a) Purchase of all types of vehicles, whether new or replacement, shall remain suspended;

b) In cases of emergency and necessity, expenditure in the categories of entertainment, travel, computers and accessories, electrical equipment, furniture, and other items shall be limited to a maximum of 50% of the allocated budget; and

c) The savings generated in accordance with the instructions in (a) and (b) above shall not be allocated or spent in any other sector.

2. Banks must retain information and documents regarding expense reduction as described in the aforementioned paragraph at the Chief Controller's Office and provide them to the inspectors of Bangladesh Bank upon request during bank inspections for audit purposes.

3. In the case of the above instructions, the expenses incurred from July/2022 to December/2022 must be reflected in the official statement of December/2022, and the expenses incurred from January/2023 to June/2023 must be reflected in the official statement of December/2023.

4. This instruction is issued under the powers conferred by Section 45 of the Companies Act, 1991. This instruction shall come into force immediately.

Yours faithfully,

(Maksuda Begum) Director (BRPD) Phone: 9530252