BRPD Circular Letter No. 48: Avoidance of High Expense for Luxurious Vehicles, Decoration and other Matters

Bangladesh Bank
Chief Executive Office
Motijheel, Dhaka-1000
Bangladesh.
Ref No.: BRPD Circular Letter No. 48 Date: ------------------- 22 Agrahayan 1429 Department of Banking Regulation and Policy To, Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Subject: Avoidance of High Expense for Luxurious Vehicles, Decoration and other Matters in the Context of Reducing Bank Operational Expenses.

1. We draw your attention to Circular Letter No. 18 dated August 20, 2019, and Circular Letter No. 30 dated July 27, 2022, regarding the suspension/reduction of operational and development expenses.

2. Through Clause 2(g) of Circular Letter No. 18/2019, it was generally instructed that all vehicles, including sedans for the Chairman and Chief Executive Officer, would be eligible for replacement after a minimum use of 05 (five) years. Now, to align with the government order regarding the vehicle lifespan of 08 (eight) years, this instruction is issued that vehicles purchased by scheduled banks for the Chairman and Chief Executive Officer, including sedans, and for other official bank purposes, shall be eligible for replacement after a minimum use of 08 (eight) years.

3. In accordance with Circular Letter No. 30/2022, the instruction banning the purchase of vehicles (new/replacement) for the current fiscal year shall remain in force, and other instructions mentioned in Circular Letter No. 18/2019 shall remain unchanged.

4. These instructions are issued under the powers conferred by Section 45 of the Companies Act, 1991.

These instructions shall take immediate effect.

Yours faithfully,

(Maksuda Begum)
Director (BRPD)
Phone: 9530252