RegAlertRule · BB · 3 Sep 2020
BRPD Circular Letter No. 45: Regarding registration of textile Industries including buying houses under The Textile Act, 2018
The circular mandates that scheduled banks in Bangladesh must verify the registration of their clients with the Department of Textiles before providing banking services to any textile industry or buying house operating under the Textile Act, 2018. This requirement addresses complaints regarding unregistered entities conducting business irregularly and damaging the country's international reputation, as operations without such registration are prohibited by law. Banks are instructed to ensure client registration compliance as a condition for extending banking facilities.
Department No.: BRPD/CD/Policy
Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.
19 Bhadro, 1427
BRPD Circular Letter No.- 45 Date: -------------------- 03 September, 2020 Managing Director / Chief Executive All Scheduled Banks Operating in Bangladesh Dear Sir, Regarding the registration of all other textile industries including buying houses under the Textile Act, 2018. The Textile Act, 2018 has been enacted to modernize the textile sector of Bangladesh with a view to fulfilling domestic textile demand, increasing exports, creating opportunities for large-scale employment, assisting in building capacity for international competition, sustainable development, attracting investment, modernization, coordination and quality control, developing demand-based curriculum in textile education, research, human resource development and creation of skilled manpower, and to carry out other related activities effectively. According to Section 2(6) and 12(2) of this Act, no textile industry [all establishments mentioned in Section 2(8) of the Textile Act, 2018] shall be operated without registration from the Department of Textiles.
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However, complaints have been raised from various quarters that some buying houses and other textile industries are conducting business irregularly without obtaining registration from the Department of Textiles, thereby tarnishing the image of the country in the international market. It is also learned that legal action cannot be taken against such establishments because they are not registered with the Department of Textiles.
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In this context, since it is mandatory for all textile industries including buying houses in the country to be registered with the Department of Textiles in accordance with the Textile Act, 2018, you are advised to ensure the registration of customer establishments under said Act while providing banking facilities to these establishments.
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This circular letter is issued under the powers conferred by Section 45 of the Banking Company Act, 1991.
Yours faithfully,
(Md. Nazrul Islam)
General Manager
Phone: 9530252
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- Banking Company Act, 1991Not in RegAlert
“This circular letter is issued under the powers conferred by Section 45 of the Banking Company Act, 1991.”
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