Regulatory Alerts2024-07-11
Added · Updated
BRPD Circular Letter No. 32: Encashment of Performance Security
The document instructs scheduled banks in Bangladesh to strictly adhere to the prescribed format when issuing performance securities and to properly follow contractual terms and government regulations when encashing them. This directive addresses recent instances of unjustified delays and non-cooperation by banks in honoring these securities, which are critical for contractors obtaining purchase orders or work orders from government and private institutions. The instruction is issued under the powers granted by Section 45 of the Bank Companies Act, 1991.
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