BRPD Circular Letter No. 45: Regarding registration of textile Industries including buying houses under The Textile Act, 2018

Ref No.: BRPD Circular Letter No. 45 Date: 03 September, 2020

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

Dear Sir,

Regarding registration of textile Industries including buying houses under The Textile Act, 2018.

The Textile Act, 2018 has been enacted to modernize the textile sector of Bangladesh, to help it become competitive in international markets, to ensure sustainable development, to attract investment, to modernize, coordinate and control quality, to develop demand-based curricula in textile education, to conduct research, to develop human resources and create skilled manpower, and to carry out other related activities effectively. In accordance with Sections 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.

However, it has been reported from various quarters that some buying houses and other textile industries are operating illegally without obtaining registration from the Department of Textiles, thereby damaging the country's image in the international market. It is also known that legal action cannot be taken against such establishments by the competent authority because they are not registered with the Department of Textiles.

In this regard, it is advised to you to ensure the registration of the client establishment under the said Act while providing banking facilities to all textile industries, including buying houses in the country, as it is mandatory for them to be registered with the Department of Textiles under the Textile Act, 2018.

This circular letter is issued under the powers conferred by Section 45 of the Bank Companies Act, 1991.

Yours faithfully,

(Md. Nazrul Islam) Manager Phone: 9530252