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2026-03-11

BRPD-2 Circular Letter No. 02: Selection of Qualified Mediators for Effective Mediation in Resolving Disputes through Pre-Suit Mediation

Bangladesh Bank directs all scheduled banks to select qualified, certified, and independent mediators for effective Pre-Suit Mediation, mandating strict eligibility criteria including conflict-of-interest checks, prior notice periods, and proven integrity. The circular supersedes previous directives and requires branch managers to ensure full compliance with the outlined mediator selection guidelines and fee structures. Banks must verify that all appointed mediators meet the specified experience, training, and certification standards to facilitate efficient dispute resolution under the Alternative Dispute Resolution framework.

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Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh website: www.bb.org.bd Circular Letter No. 02 dated 11 May 2026 Ref: --------------------- 26 Dhub 1432 Subject: Circular/Direction to all Scheduled Banks in Bangladesh Dear Sir, With reference to Pre-Suit Mediation, this circular is issued for the selection of qualified mediators for effective mediation. Pursuant to Circular Letter No. 11 dated 12 May 2024, the following directions are issued under the said circular:

  1. In line with the directions of the aforementioned circular, the Alternative Dispute Resolution (ADR) mechanism is an important step towards resolving disputes. However, as of 30 May 2026, a 1% fee is applicable under the ADR mechanism. Accordingly, banks are directed to select mediators who are experienced, trained, and certified in Pre-Suit Mediation, or those recognized by other competent authorities. Furthermore, to ensure effective mediation, banks are required to select qualified mediators from a panel of experienced, trained, and certified individuals, or those recognized by other competent authorities, or those who have been trained and certified by other competent authorities.

  2. In line with the Alternative Dispute Resolution mechanism, the Alternative Dispute Resolution Act, 2026 and the Alternative Dispute Resolution (Arbitration) Act, 2025 provide the legal framework for Pre-Suit Mediation. Accordingly, banks must follow relevant directions under these laws.

  3. The Alternative Dispute Resolution Act, 2001 and the Alternative Dispute Resolution (Arbitration) Act, 2025 provide the legal framework for Pre-Suit Mediation. Accordingly, banks must follow relevant directions under these laws. Page No. 02

  4. The competent authority has issued detailed guidelines for the selection of qualified mediators in line with the Alternative Dispute Resolution mechanism. Banks must follow these guidelines. The following criteria must be met for mediator selection: (K) The mediator must be experienced, trained, and certified in mediation as per the guidelines issued by the competent authority; (L) The mediator selected for the dispute must not be a relative, employee, or have any financial interest in the parties, nor be related to them by blood, marriage, or business, nor be bound by any obligation; (M) Must submit a notice of 07 (seven) days to the bank, competent authority, or other relevant body. Similarly, in case of bank/competent authority arbitration/ADR, a notice of 03 (three) days must be submitted; (N) Must be independent, impartial, and free from bias regarding the bank and competent authority, and must maintain confidentiality and follow Bangladesh Bank's guidelines; (O) Must not have any prior involvement in the dispute or mediation; (P) Must possess integrity, honesty, good conduct, and a clean record; (Q) Must not be convicted of any criminal offense or involved in any fraud, misrepresentation, or breach of trust; (R) Must be of good moral character, upright, fair, and not bankrupt; (S) Must not be a party to any bank or competent authority dispute; and (T) Must not have been disqualified by any authority at any time.

  5. Banks must ensure that selected mediators meet the above criteria and follow the guidelines.

  6. Branch managers are directed to comply with these instructions.

  7. All previous circulars are superseded.

  8. Issued under Section 45 of the Bangladesh Bank Order, 1972.

Authorized Signatory, (Md. Abdul Jabbar) Deputy Governor (Circular-2) Date: 9530095

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