BB Order, 1972 (as amended upto 2003)

BANGLADESH BANK ORDER, 1972 (AS AMENDED UP TO 2003)

 

  1. REF: PSD CIRCULAR LETTER NO. 06 DATED 14.05.2015, PSD CIRCULAR NO. 03 DATED 15.05.2014.

[7A.The main functions of the Bank shall be :

(a) to formulate and implement monetary policy;

(b) to formulate and implement intervention policies in the foreign exchange market;

 (c) to give advice to the Government on the interaction of monetary policy with fiscal and exchange rate policy, on the impact of various policy measures on the economy and to propose legislative measures it considers necessary or appropriate to attain its objectives and perform its functions;

(d) to hold and manage the official foreign reserves of Bangladesh;

(e) to promote, regulate and ensure a secure and efficient payment system, including the issue of bank notes;

(f) to regulate and supervise banking companies and financial institutions. ]1

  1. NI Act. REF: NIL
  2. (1) The Bank shall have the sole right to issue Bank Notes made payable to bearer on demand in Bangladesh in accordance with the provisions hereinafter made.

(2) Any person contravening this authority or committing any other offence specified in Article 35 shall be liable to the penalties mentioned therein.

  1. NI Act. REF: NIL
  2. (1) Subject to the provisions of clause (2) all Bank Notes, Coins and Currency Notes and those which were in circulation in Bangladesh on the appointed day shall continue to be legal tender at any place in Bangladesh for the amount expressed therein and shall be guaranteed by the Government.

(2) On the recommendation of the Board, the Government, may, by notification in the official Gazette, declare that with effect from such date as may be specified in the notification, any series of Bank Notes of any denomination shall cease to be legal tender save at such offices, branches and agencies, if any, of the Bank as may be specified in the notification.

  1. REF: DOS CIRCULAR NO. 01 DATED 19.01.2014.
  2. [(1) Every scheduled bank shall maintain with the Bank a balance the amount of which shall not be less than such portion of its total demand and time liabilities as may be prescribed by the Ba nk pursuant to the monetary policy objectives of the Bank, by notification in the official Gazette.

Explanation—For the purposes of this Article liabilities shall not include the paid-up capital or the reserves, or any credit balance in the profit and loss account of such bank or the amount of any loan taken from the Bank.]1

  1. COLLECTION AND FURNISHING OF CREDIT INFORMATION. REF: FSD CIRCULAR NO. 01 DATED 24.12.2015.
  2. The Bank may—

(a) collect, in such manner as it may think fit, credit information from every banking company; and

(b) furnish such information to any banking company in accordance with the provisions of Article 45.

  1. REF: PSD CIRCULAR LETTER NO. 06 DATED 14.05.2015, PSD CIRCULAR NO. 03 DATED 15.05.2014.
  2. (1) [The Board]1 may make regulations consistent with this Order to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of this Order:

Provided that in the event of non-existence of the Board, the Governor may with the approval of the Government make regulations for the purpose of giving effect to the provisions of this Order and generally for carrying out the purposes of this Order.

1Substituted by the Bangladesh Bank (Amendment) Act, 2003

(2) In particular and without prejudice to the generality of the foregoing provision, such regulations may provide for all or any of the following matters, namely:-

(a) the manner in which meetings of the Board shall be transacted and the procedure to be followed at meetings thereof;

(b) the conduct of the business of the Executive Committee;

(c) the delegation of powers and functions of the Board, the Governor, Deputy Governor, Directors, or Officers of the Bank;

(d) the formation of committees of the Board, their supervis ion by the Board and the conduct of business in such committees;

(e) Recruitment of employees of the Bank including the terms and conditions of their service, constitution of superannuation, beneficial and other funds, with or without Bank’s contribution, for the employees of the Bank, their welfare, providing amenities, medical facilities, grant of loans and advances, their betterment and uplift;

(f) the manner and form in which contracts binding on the Bank may be executed;

(g) the provision of an official seal of the Bank and the manner and effects of its use;

(h) the manner and forms in which the balance sheet of the Bank shall be drawn up, and in which the accounts shall be maintained;

(i) the remuneration of Directors;

(j) the relations of the scheduled banks with the Bank and the returns to be submitted by the scheduled banks to the Bank;

(k) the regulations of clearing houses for the scheduled banks;

(l) the circumstances in which, and the conditions and limitations subject to which, the value of any lost, stolen, mutilated or imperfect Bank Note may be refunded as of grace;

(m) the denomination, form, issue, negotiability, encashment and repatriation of the instruments mentioned in clause (8) of Article 16;

(n) generally, for making any provision necessary or convenient for the efficient conduct of the business, discharge of functions and for purposes of management of the Bank.

[(2A) Notwithstanding anything contained in this Article, no regulation under subclause (h), (i), and (m) of clause (2) shall be made without the prior approval of the Government.

Provided that regulations falling under sub-clause (e) on salary and compensation packages of employees would be subject to the approval of the government, based on due consideration of skill and competence needed for central banking.]1

1Added by the Bangladesh Bank (Amendment) Act, 2003

(3) Copies of all regulations made under this Article shall be available to the public on payment.