Regulatory Alerts2022-09-05
Added
BRPD Circular Letter No. 35: Regarding Cost Minimization and Practising Austerities
The BRPD issues directives to all scheduled banks operating in Bangladesh to maintain cost minimization measures in response to economic shocks from the COVID-19 pandemic and the Russia-Ukraine war. Banks are required to reduce fuel usage by at least 20 percent and electricity consumption by at least 25 percent, while taking exemplary action against misuse such as unauthorized personal use of official vehicles and unnecessary operation of climate control or electrical appliances. These instructions are issued under the powers granted by Section 45 of the Bank Company Act, 1991.
Bangladesh Bank Chief Controller Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD-RCB-35-2022-36(12) Banking Regulation and Policy Department 05 September 2022 BRPD Circular Letter No. 35 Date: ------------------ 21 Bhadro 1429 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding Cost Minimization and Practising Austerities in the context of the economic shock caused by COVID-19 and the global increase in prices of fuel, food, and consumer goods due to the ongoing Russia-Ukraine war situation. Reference is drawn to your attention regarding BRPD Circular Letter No. 28, dated: 26 July 2022, concerning the reduction/minimization of electricity and fuel costs. 02. In order to further clarify the instructions mentioned in the said circular and to ensure their proper implementation for the purpose of cost minimization and austerity in the context of the economic shock caused by COVID-19 and the global increase in prices of fuel, food, and consumer goods due to the ongoing Russia-Ukraine war situation, the following instructions are hereby given: (a) Measures taken to reduce the usage of fuel (petrol, diesel, gas, etc.), oil, and lubricants by 20 percent or more shall be maintained. In this regard, exemplary steps must be taken to prevent the misuse of allocated fuel (e.g., unauthorized use of official vehicles for personal work, allocation of vehicles beyond authorization, etc.); and (b) Measures for work to reduce electricity usage by 25 percent or more shall be strengthened. In this regard, areas of electricity misuse (e.g., use of air conditioning units outside of authorization, lighting unnecessary electricity, geysers, electric kettles, excessive/unnecessary use of electrical equipment, etc.) must be identified, and appropriate measures must be taken for electricity conservation. 03. These instructions are issued under the powers granted by Section 45 of the Bank Company Act, 1991. Yours faithfully, (Maksuda Begum) Director (BRPD) Phone: 9530252