§ 1(1) This Order may be called the Bangladesh Ban
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The Bangladesh Bank Order, 1972 is the founding legislation that established the Bangladesh Bank as the central bank of Bangladesh. It applies to all banking and financial activities within the jurisdiction of Bangladesh Bank. The Order sets out the Bank's capital structure, management (Governing Board consisting of a Governor and Directors), and its primary functions including the formulation and implementation of monetary policy, regulation and supervision of banks and financial institutions, management of foreign exchange reserves, issuance of currency notes (the Taka), and acting as the banker to the Government. Key mechanisms include the Bank's authority to grant licences to scheduled banks, to regulate interest rates, to control credit through cash reserve ratio and statutory liquidity requirements, to act as lender of last resort, and to maintain the external value of the Taka. Notable provisions include the Bank's power to inspect and supervise banks (Section 42), to call for information and returns from banks, and to impose penalties for non-compliance. The Order established the institutional framework for Bangladesh's financial system following independence and has been amended numerous times to adapt to evolving economic conditions. The Bank continues to operate under this Order as the apex monetary authority of Bangladesh.
Full text · showing key sections
§ 2Order, context repugnant ,—
2। order, context repugnant ,—
() "prescribed/determined day" 1971 16 ;
() " foreign currency" currency 18 notification declaration tax ;
() "Bank" Bank;
() "Bank company" Bank company Act, 1991 (1991 14 Act) 5 () definition "Bank company";
() "Bank " Bank tax 23 currency;
() "Bank " Bank tax 21 publication ;
() "Board" Bank ;
() "currency" , () purpose , currency order, 1972 (1972 .. 83) currency;
() " Bank" Bank, Bank , Act, 2001 (2001 47 Act) in force Act under , purpose financial ;
() "Director" Bank Director;
() "financial institution" financial institution Act, 1993 (1993 27 Act) 2 () definition "financial institution";
() "Governor" "Deputy Governor" Bank Governor Deputy Governor;
() "Government" Government;
() "schedule Bank" 37 (2) - () Bank list Bank;
() " Bank" Bank Act, 1956 Bank ;
() " currency" currency currency valid currency।
§ 3(1) There shall be a bank to be called the Bang
(1)There shall be a bank to be called the Bangladesh Bank for the purposes of carrying on the business of central banking and it shall be deemed to have been established on the appointed day.
(2)The Bank shall be a body corporate by the name of the Bangladesh Bank, having perpetual succession and a common seal, and shall by the said name sue and be sued.
§ 4(1) The capital of the Bank shall be Taka three
(1)The capital of the Bank shall be Taka three crores.
(2)The entire capital of the Bank shall stand vested in, and allotted to, the Government.
(3)The capital of the Bank may, subject to the approval of the Government, be increased by a resolution of the Board, and any capital so increased shall be subscribed for by the Government in such form and manner as may be determined by the Government.
(4)On the appointed day all the shares of the State Bank held in Bangladesh which have not already vested in the Government by or under any other law for the time being in force, shall, by virtue of this Order, be deemed to have been vested in, and allotted to, the Government free from any trust, mortgage, charge, lien, interest, or other encumbrance whatsoever.
(5)The Government shall pay such compensation in respect of the shares vested in the Government under clause (4) as may be determined by it and such compensation shall be distributed among the share-holders of the State Bank in Bangladesh in the manner as may be determined by the Government:
Provided thatthe total compensation payable under this clause shall not exceed the total paid up value of the shares held by the share-holders, among whom such compensation is to be distributed.
§ 5(1) On the appointed day the entire undertaking
(1)On the appointed day the entire undertaking of the State Bank in and in relation to Bangladesh shall be deemed to have been transferred to, and vested in, the Bank.
(2)The undertaking of the State Bank so transferred and vested shall be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and immovable, including all lands, buildings, cash balances, reserve funds, investments, and debts or actionable claims, any security or negotiable instrument, and all other rights and interests in, or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of the State Bank in relation to, or for the purposes of, the undertaking of the State Bank in or in relation to Bangladesh whether such property is situated within or without Bangladesh, and all books of account, registers, records and all other documents of whatever nature relating thereto and shall also be deemed to include all borrowings, liabilities and obligations of whatever kind of the State Bank in relation to the undertaking within the territory of Bangladesh.
(3)Subject to the provisions of this Order all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature subsisting or having effect immediately before the appointed day and to which the State Bank is a party or which are in favour of the State Bank shall-
(a) if they are exclusively for the purposes or for the business of the undertaking of the State Bank in Bangladesh; or
(b) if they are partly for the purposes in sub-clause (a) and partly for any other purpose to the extent and subject to such conditions and limitation, as the Government may determine, be of as full force and effect against or in favour of the Bank and may be enforced or acted upon as fully and effectively as if in place of the State Bank, the Bank has been a party thereto or as if they had been issued in favour of the Bank.
(a) if they are exclusively for the purposes or for the business of the undertaking of the State Bank in Bangladesh; or
(b) if they are partly for the purposes in sub-clause (a) and partly for any other purpose to the extent and subject to such conditions and limitation, as the Government may determine, be of as full force and effect against or in favour of the Bank and may be enforced or acted upon as fully and effectively as if in place of the State Bank, the Bank has been a party thereto or as if they had been issued in favour of the Bank.
§ 6(1) All suits, appeals, or other legal proceedi
(1)All suits, appeals, or other legal proceedings of whatever nature pending on the appointed day by or against the State Bank in relation to its undertaking which has vested in the Bank under Article 5, shall be deemed to be suits, appeals and other legal proceedings pending by or against the Bank and may be continued and enforced by or against the Bank.
(2)Notwithstanding anything contained in any other law for the time being in force, where any proceeding for the winding up of a banking company under the Banking Companies Ordinance, 1962, is pending before the High Court of Bangladesh immediately before the appointed day in which the State Bank was appointed as Official Liquidator, the Bank shall be substituted in place of the State Bank as the Official Liquidator and shall be deemed always to have been so substituted.
§ 7Subject to the provisions of this Order and any
Subject to the provisions of this Order and any other law for the time being in force, any person being a citizen of Bangladesh who, immediately before the appointed day, was an employee of the State Bank shall, as from that day, continue to be an employee of the Bank on the same terms and conditions as were applicable to him immediately before that day.
§ 7AThe main functions of the Bank shall be: (a)
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[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.]
§ 8(1) The Head Office of the Bank shall be at Dac
(1)The Head Office of the Bank shall be at Dacca.
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[(2) The Bank shall have offices at Dhaka, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur and may establish other offices, branches and agencies in Bangladesh or in consultation with the Government anywhere outside Bangladesh.]
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[(2) The Bank shall have offices at Dhaka, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal, Rangpur and may establish other offices, branches and agencies in Bangladesh or in consultation with the Government anywhere outside Bangladesh.]
§ 9[* * *] (2) [The general superintendence] and d
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[* * *]
(2)2
[The general superintendence] and direction of the affairs and business of the Bank shall be entrusted to a Board of Directors which may exercise all the powers and do all acts and things that may be exercised or done by the Bank
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[:
[The general superintendence] and direction of the affairs and business of the Bank shall be entrusted to a Board of Directors which may exercise all the powers and do all acts and things that may be exercised or done by the Bank
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[:
Provided thatuntil the first Board is constituted, the Governor may exercise all powers and do all acts and things as are required to be exercised or done by the Board.]
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[(3) The Board shall consist of-
(a) the Governor;
(b) a Deputy Governors, to be nominated by the Government;
(c)
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[four Directors who will not be Government officials] to be nominated by the Government from amongst persons who, in the opinion of the Government, have had experience and shown capacity in the field of banking, trade, commerce, industry or agriculture.
(d) three Government Officials to be nominated by the Government.]
§ 9A(1) There shall be a Council for the co-ordin
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[9A. (1) There shall be a Council for the co-ordination of fiscal, monetary and exchange rate policies, hereinafter called the Co-ordination Council, consisting of-
(i) Minister for Finance .......... Chairman.
(ii) Minister for Commerce .......... Member.
(iii) Governor, Bangladesh Bank .......... Member.
(iv) Secretary, Finance Division .......... Member.
(v) Secretary, Internal Resources Division .......... Member.
(vi) Member (Programming), Planning Commission .......... Member.
(2)The Co-ordination Council shall-
(a) co-ordinate the macro-economic framework including fiscal, monetary and exchange rate strategies and policies;
(b) ensure consistency among macro-economic targets of growth, inflation and fiscal, monetary and external accounts;
(c) meet for the purposes of clauses (a) and (b) before the finalization of the budget to determine the extent of public sector borrowing taking into account credit requirements of the private sector, monetary expansion based on projected growth, price inflation, and net foreign assets of the banking system;
(d) meet at least on a quarterly basis to review the consistency of macro-economic policies and to revise limits and targets set at the time of the formulation of the budget, keeping in view the latest developments in the economy;
(e) consider limits of the government borrowing as revised from time to time in the meetings to be held before and after passage of the annual budget.
(a) co-ordinate the macro-economic framework including fiscal, monetary and exchange rate strategies and policies;
(b) ensure consistency among macro-economic targets of growth, inflation and fiscal, monetary and external accounts;
(c) meet for the purposes of clauses (a) and (b) before the finalization of the budget to determine the extent of public sector borrowing taking into account credit requirements of the private sector, monetary expansion based on projected growth, price inflation, and net foreign assets of the banking system;
(d) meet at least on a quarterly basis to review the consistency of macro-economic policies and to revise limits and targets set at the time of the formulation of the budget, keeping in view the latest developments in the economy;
(e) consider limits of the government borrowing as revised from time to time in the meetings to be held before and after passage of the annual budget.
(3)The Bangladesh Bank shall ensure that the macro-economic framework as co-ordinated by the Co-ordination Council is reflected in the policies of the Bangladesh Bank.
(4)The Bangladesh Bank shall place before the Co-ordination Council-
(a) relevant data relating to monetary expansion and Government borrowing from the banking system, and
(b) the assessment of the Bangladesh Bank regarding the impact of economic policies of the government on monetary aggregates and balance of payments.
(a) relevant data relating to monetary expansion and Government borrowing from the banking system, and
(b) the assessment of the Bangladesh Bank regarding the impact of economic policies of the government on monetary aggregates and balance of payments.
(5)The Ministry of Finance shall, from time to time, bring to the notice of the Co-ordination Council the impact of tax, budget and debt management policies on overall macro-economic situation.
(6)The Ministry of Commerce shall from time to time, bring to the notice of the Co-ordination Council the impact of trade and tariff policies on overall macro-economic situation.]
§ 10Governor to be the chief executive officer
(1)The Governor of the Bank shall be the Chief Executive Officer and shall, on behalf of the Board, direct and control the whole affairs of the Bank.
(2)In the matters not specifically required by this Order or by regulations made thereunder, to be done by the Board, the Government shall have powers of general superintendence and directions of the affairs and business of the Bank and may exercise all powers and do all acts and things which may be exercised or done by the Bank.
(3)The Governor shall be appointed
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[by the Government] on such salary and terms and conditions as may be determined by the Government except that neither the salary of the Governor nor his other terms and conditions of service shall be varied to his disadvantage after his appointment.
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[by the Government] on such salary and terms and conditions as may be determined by the Government except that neither the salary of the Governor nor his other terms and conditions of service shall be varied to his disadvantage after his appointment.
(4)One or more Deputy Governors shall be appointed
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[by the Government] on such salary and on such terms and conditions as the Government may determine except that neither the salary of a Deputy Governor nor his other terms and conditions shall be varied to his disadvantage after his appointment.
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[(5) The Governor shall hold office for a period of four years and shall be eligible for re-appointment
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[.]
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[***]
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[by the Government] on such salary and on such terms and conditions as the Government may determine except that neither the salary of a Deputy Governor nor his other terms and conditions shall be varied to his disadvantage after his appointment.
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[(5) The Governor shall hold office for a period of four years and shall be eligible for re-appointment
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[.]
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[***]
(6)The Governor and a Deputy Governor shall devote their whole time to the affairs of the Bank.
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[(7) The Government may require a Deputy Governor to hold an office other than in the Bank, in which event the Deputy Governor shall vacate his office, and the period during which he holds the other office shall not count towards his tenure of office as Deputy Governor.]
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[(7) The Government may require a Deputy Governor to hold an office other than in the Bank, in which event the Deputy Governor shall vacate his office, and the period during which he holds the other office shall not count towards his tenure of office as Deputy Governor.]
(8)The Governor, or a Deputy Governor, as the case may be, in addition to his duties as the Governor or a Deputy Governor, be entrusted by an order of the Government with such duties for such period as may be specified in the order.
(9)No person shall hold office as
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[Governor or Deputy Governor]
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[* * *]:
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[(a) who is a member of the Legislature or a local Government;]
(b) who is employed in any capacity in the public service of Bangladesh or holds any office or position for which any salary or other remuneration is payable out of public funds;
(c) who is a Director, officer or employee of any other
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[banking company or financial institution] or of any other business concern:
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[Governor or Deputy Governor]
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[* * *]:
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[(a) who is a member of the Legislature or a local Government;]
(b) who is employed in any capacity in the public service of Bangladesh or holds any office or position for which any salary or other remuneration is payable out of public funds;
(c) who is a Director, officer or employee of any other
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[banking company or financial institution] or of any other business concern:
Provided thatnothing in this sub-clause shall apply where the
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[Governor or Deputy Governor]
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[* * *] is entrusted with additional duties under clause (8);
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[(d) who has defaulted in payment of dues of the government or of any banking company or any financial institutions;]
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[(e) who is, or at any time has been, adjudicated an insolvent or had suspended payment or has compounded with his creditors;
(f) who is found lunatic or becomes of unsound mind;
(g) who has been convicted of an offence involving moral turpitude or has been sentenced by a court for a term of imprisonment exceeding one year.]
(10)The Government may grant leave to the Governor and a Deputy Governor for such period and on such terms and conditions as may be specified by the Government;
(11)Where the Governor
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[* * *] during his term of office is incapacitated or is absent on deputation, leave or otherwise, the Government may appoint any person qualified under clause (9) but who may not be qualified under sub-clause (b) of that clause to act for the time being as the Governor
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[* * *] in his place.
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[* * *] during his term of office is incapacitated or is absent on deputation, leave or otherwise, the Government may appoint any person qualified under clause (9) but who may not be qualified under sub-clause (b) of that clause to act for the time being as the Governor
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[* * *] in his place.
§ 11(1) Meetings of the Board shall be convened by
(1)Meetings of the Board shall be convened by the Governor at least six times in each year and at least once in each quarter.
(2)Any three Directors may require the Governor to convene a meeting of the Board at any time and the Governor shall forthwith convene a meeting accordingly.
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[(3) The Governor or, if for any reason he is unable to attend, the Deputy Governor nominated under sub-clause (b) of clause (3) of Article 9, shall preside at meetings of the Board and in the event of any equality of votes, shall have a second or casting vote. In case the Deputy Governor is also unable to attend for any reason, any other Director, authorised by the Governor, shall preside over the meeting of the Board and shall have a second or casting vote.]
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[(3) The Governor or, if for any reason he is unable to attend, the Deputy Governor nominated under sub-clause (b) of clause (3) of Article 9, shall preside at meetings of the Board and in the event of any equality of votes, shall have a second or casting vote. In case the Deputy Governor is also unable to attend for any reason, any other Director, authorised by the Governor, shall preside over the meeting of the Board and shall have a second or casting vote.]
(4)No act or proceedings of the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Board.
§ 12[(1) There shall be an Executive Committee con
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[(1) There shall be an Executive Committee consisting of-
(a) the Governor;
(b) the Director nominated under sub-clause (b) of clause (3) of Article 9;
(c) one Director elected by the Board from amongst the Directors nominated under sub-clause (c) of clause (3) of Article 9; and
(d) one Director appointed by the Government from amongst the Directors nominated under sub-clause (d) of clause (3) of Article 9.]
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(3)Except when the Board is in session, the Executive Committee shall deal with and decide any matter within the competence of the Board and shall keep minutes of its proceedings, which shall be submitted to the Board for information at its next meeting.
§ 13(1) Director
13। (1) Director —
() Government ;
() Government Bank company financial institution ;
() tax tax;
() ;
() Bank company financial institution taxtax employee;
() Bank company financial institution Director, Act, 2001 (2001 47 Act) in force Act under Bank Director Director tax ;
() Board Board absent ;
() offence guilty penalty convicted/punished ।
(2)(1) - () 9 (3) - () under Director account Government taxtax applicable ।
§ 14(1) The Directors nominated under sub-clause [
(1)The Directors nominated under sub-clause
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[(c)] of clause (3) of Article 9 shall hold office for three years.
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[(c)] of clause (3) of Article 9 shall hold office for three years.
(2)A Director nominated under sub-clause
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[(d)] of clause (3) of Article 9 shall hold office at the pleasure of the Government.
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[(d)] of clause (3) of Article 9 shall hold office at the pleasure of the Government.
(3)Directors shall on the expiry of their term of office be eligible for renomination.
§ 15(1) The Government may remove from office- (a)
(1)The Government may remove from office-
(a) the Governor or
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[a Deputy Governor] if he becomes permanently incapable of performing his duties or subject to any of the disqualifications specified in clause (9) of Article 10 or has done any act which is a breach of the trust reposed in him, or if his continuance in office is regarded as manifestly opposed to the interests of the Bank; and
(b) any Director.
(a) the Governor or
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[a Deputy Governor] if he becomes permanently incapable of performing his duties or subject to any of the disqualifications specified in clause (9) of Article 10 or has done any act which is a breach of the trust reposed in him, or if his continuance in office is regarded as manifestly opposed to the interests of the Bank; and
(b) any Director.
(2)(a) The Governor,
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[a Deputy Governor] or a Director may resign his office by statement to that effect in writing signed by him and addressed to the Government;
(b) A statement of resignation by
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[a Deputy Governor] or
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[a Director] shall be addressed as above through the Governor;
(c) On the acceptance of such a resignation by the Government, the office shall become vacant;
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[a Deputy Governor] or a Director may resign his office by statement to that effect in writing signed by him and addressed to the Government;
(b) A statement of resignation by
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[a Deputy Governor] or
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[a Director] shall be addressed as above through the Governor;
(c) On the acceptance of such a resignation by the Government, the office shall become vacant;
(3)Any Director vacating office under this Article shall not be eligible to become a Director until the expiry of the term of office for which he was nominated; and
(4)In the event of a vacancy occurring, the Government shall fill the vacancy by nominating another Director.
§ 16Bank undertaking tax power , :-
16। Bank undertaking tax power , :-
(1)Government, Government, Bank, financial institution tax ।
(2)() , schedule Bank day day , , ;
() , schedule Bank Bank , tax purpose , , day month ;
- - purpose-
() , schedule Bank Bank , tax purpose , , day month ;
- - purpose-
(1)“ ” , , , , , , , , ;
(2)“” ;
(3)“ tax” tax tax tax ;
() , Bank financial tax , Bank tax tax purpose , , day month :
capital Government tax Bank ।
() Government tax Bank tax account loan —
() , Bank financial tax , Bank tax tax purpose , , day month :
capital Government tax Bank ।
() Government tax Bank tax account loan —
(1)loan day specified , Government ;
(2)loan month specified , Government , tax loan tax tax tax Government tax loan month ;
() schedule Bank , Government purpose , , day day ;
() , schedule Bank Bank Government tax purpose cash goods loan tax, tax , goods , , :
Bank - under Bank tax tax Bank company Act, 1991 (1991 14 Act) under Bank company tax direction tax , tax Act 1991 109 - (2) under punishment , direction tax Director taxtax - (7) under punishment , Act 111 applicable tax Bank company;
() Bank tax company in force Act under tax tax Government- , ;
() Bank tax , schedule Bank financial institution tax loan institution loan ;
() Bank tax , loan schedule Bank fund ।
() schedule Bank , Government purpose , , day day ;
() , schedule Bank Bank Government tax purpose cash goods loan tax, tax , goods , , :
Bank - under Bank tax tax Bank company Act, 1991 (1991 14 Act) under Bank company tax direction tax , tax Act 1991 109 - (2) under punishment , direction tax Director taxtax - (7) under punishment , Act 111 applicable tax Bank company;
() Bank tax company in force Act under tax tax Government- , ;
() Bank tax , schedule Bank financial institution tax loan institution loan ;
() Bank tax , loan schedule Bank fund ।
(3)() foreign currency ;
() currency foreign currency account declaration tax day day , :
, schedule Bank tax ;
() currency foreign currency account declaration tax Bank surplus ;
() Board , company surplus , under Bank surplus 25 ।
() currency foreign currency account declaration tax day day , :
, schedule Bank tax ;
() currency foreign currency account declaration tax Bank surplus ;
() Board , company surplus , under Bank surplus 25 ।
(4)tax, schedule Bank Bank security specified loan , day —
() in force Act tax power, immovable property , , fund ;
() document;
() Bank tax ;
() goods document schedule Bank , document tax purpose cash loan security account Bank transfer, tax ;
() in force Act tax power, immovable property , , fund ;
() document;
() Bank tax ;
() goods document schedule Bank , document tax purpose cash loan security account Bank transfer, tax ;
(5)60 under loan fund fund purpose loan ;
(6)61 under loan tax fund fund purpose loan ;
(7)62 under loan fund fund purpose loan ;
(8)63 under loan fund fund purpose loan ;
(9)Government , month ;
(10)purpose institution Bank Bank Board prescribed/determined loan ;
(11)Government prescribed/determined company, tax institution , ;
(12), , ;
(13)Government , foreign currency Bank , , , , ; Government tax ;
(13)Bank tax prescribed/determined negotiable ;
(14)() - () , currency foreign currency account declaration tax ;
() order in force Bank account applicable , 5 under Bank transfer vested ;
() order in force Bank account applicable , 5 under Bank transfer vested ;
(15)() Government , Board Government tax official Gazette notification tax , ;
() capital account Government tax , purpose Government ;
() Bank Division Bank capital, fund Bank Division - ;
() capital account Government tax , purpose Government ;
() Bank Division Bank capital, fund Bank Division - ;
(16), capital, ;
(17)property, movable immovable, Bank Bank , cashtax;
(18)Government tax account tax, :-
() , foreign currency ;
() company , , , transfer ;
() capital, ;
() ;
() Government loan ;
() , foreign currency ;
() company , , , transfer ;
() capital, ;
() ;
() Government loan ;
(19)currency ;
(20)Bank in force Act Chief currency tax Chief currency tax tax Bank account tax, account tax, Bank fund Bank tax;
(21)() - () () , Bank purpose tax tax security ;
() under schedule Bank month Bank capital tax ;
() under Bank, company, institution tax ;
() under schedule Bank month Bank capital tax ;
() under Bank, company, institution tax ;
(22)order Bank ;
(23)financial order, 1972 under Bank ;
(24)loan ;
(25)order in force Act under Bank vested power ;
(26), order under Bank power , tax।
§ 17(1) Where, in the opinion of the Board or of t
(1)Where, in the opinion of the Board or of the Governor, circumstances so warrant, the Bank may, notwithstanding any limitation contained in sub-clauses (a) and (b) of clause (2) or sub-clauses (a) and (b) of clause (3) or clause (4) of Article 16-
(a) purchase, sell or discount any of the bills of exchange or promissory notes specified in sub-clause (a) or sub-clause (b) of clause (2) or sub-clause (b) of clause (3) of Article 16 though such bill or promissory note does not bear the signature of a scheduled bank; or
(b) make advances or loans repayable on demand or on the expiry of fixed periods not exceeding ninety days against the various forms of security specified in clause (4) of Article 16 or against the security of goods or when the advance or loan is made to a banking company against such other form of security as the Bank may consider sufficient.
(a) purchase, sell or discount any of the bills of exchange or promissory notes specified in sub-clause (a) or sub-clause (b) of clause (2) or sub-clause (b) of clause (3) of Article 16 though such bill or promissory note does not bear the signature of a scheduled bank; or
(b) make advances or loans repayable on demand or on the expiry of fixed periods not exceeding ninety days against the various forms of security specified in clause (4) of Article 16 or against the security of goods or when the advance or loan is made to a banking company against such other form of security as the Bank may consider sufficient.
(2)Notwithstanding anything to the contrary contained in any other law for the time being in force, where a banking company, to which an advance or loan has been made under the provisions of sub-clause (b) of clause (1) is wound up, any sum due to the Bank in respect of such advance or loan shall, subject only to the claims, if any, of any other banking company in respect of any prior claim or advance made by such banking company against any security, be a first charge on the assets of the banking company.
§ 18The Bank shall by notification in the officia
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[18. The Bank shall by notification in the official Gazette, declare the currency of any country to be approved foreign exchange for all or any of the purposes of this Order.]
§ 19The Bank shall not, except as authorised under
The Bank shall not, except as authorised under this Order-
(1)engage in trade or otherwise have a direct interest in any commercial, industrial or other undertaking except such interest as it may in any way acquire in the course of the satisfaction of any of its claims, but all such interest shall be disposed of at the earliest possible moment;
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[* * *]
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[* * *]
(3)advance money on the mortgage, or otherwise on the security, of immovable property or documents of title relating thereto, except where such advance is made to any of its employees for building or purchasing a house for his personal use against the security of the house;
(4)become the owner of any immovable property except where ownership is necessary for the use of such property by the Bank, or for the residence, recreation or welfare of its employees;
(5)make unsecured advances and loans;
(6)draw or accept bills payable otherwise than on demand; and
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§ 20(1) The Bank shall undertake to accept monies
(1)The Bank shall undertake to accept monies for account of the Government, and to make payments up to the amount standing to the credit of their accounts and to carry out its exchange, remittance and other banking operations, including the management of the public debt.
(2)(a) The Government shall entrust the Bank, on such conditions as may be agreed upon between the Government and the Bank, with all their money, remittance, and banking transactions in Bangladesh, and, in particular, shall deposit free of interest all its cash balances with the Bank.
(b) Nothing in this clause shall be deemed to prevent the Government from carrying on money transactions, at places where the Bank has no office, branch or agency or from holding at such places such balances at it may require.
(c) The Government shall entrust the Bank, on such conditions as may be agreed upon between the Government and the Bank, with the management of the public debt and with the issue of any new loans.
(b) Nothing in this clause shall be deemed to prevent the Government from carrying on money transactions, at places where the Bank has no office, branch or agency or from holding at such places such balances at it may require.
(c) The Government shall entrust the Bank, on such conditions as may be agreed upon between the Government and the Bank, with the management of the public debt and with the issue of any new loans.
(3)In the event of any failure to reach agreement on the conditions referred to in this Article, the Government shall decide the conditions and its decision shall be final.
(4)Any agreement made under this Article shall be laid, as soon as may be after it is made, before the Legislature.
§ 21The Bank shall make public from time to time t
The Bank shall make public from time to time the standard rate at which it is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under this Order.
§ 22The Bank shall sell to or buy from any author
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[22. The Bank shall sell to or buy from any authorised dealer in Bangladesh approved foreign exchange at such rates of exchange and on such conditions as it may determine Pursuant to its monetary and exchange rate policy.]
§ 23(1) The Bank shall have the sole right to issu
(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.
§ 24(1) Subject to the provisions of clause (2) al
(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.
§ 25Notwithstanding anything contained in Article
Notwithstanding anything contained in Article 24 no Pakistan Bank note of the denominational value of five hundred rupees and one hundred rupees issued before 8th day of June, 1971 shall be legal tender in payment or an account of amount expressed therein.
§ 26(1) The issue of Bank Notes shall be conducted
(1)The issue of Bank Notes shall be conducted by the Bank in an Issue Department which shall be separated and kept wholly distinct from the Banking Department and the assets of the Issue Department shall not be subject to any liability other than the liabilities of the Issue Department as defined in Article 32.
(2)The Issue Department shall not issue Bank Notes to the Banking Department or to any person except in exchange for other Bank Notes or for such coin, bullion, approved foreign exchange or securities as are permitted under this Order to form part of the assets of the Issue Department.
§ 27Bank Notes made and issued by the Bank shall b
Bank Notes made and issued by the Bank shall be in such denominations and of such design, form and material as may be approved by the Government on the recommendations of the Board.
§ 28The Bank shall not reissue Bank Notes which ar
The Bank shall not reissue Bank Notes which are torn, defaced or excessively soiled.
§ 29Notwithstanding anything contained in any enac
Notwithstanding anything contained in any enactment or rule or law to the contrary, no person shall as of right be entitled to recover from the Government or the Bank the value of any lost, stolen, mutilated or imperfect Bank Note.
§ 30(1) The assets of the Issue Department shall n
(1)The assets of the Issue Department shall not be less than the total of its liabilities and shall be maintained as follows:-
(a) of the total amount of the assets, assets of such value as the Government in consultation with the Bank, may, by notification in the official Gazette, specify shall be held in gold coins, gold bullion, silver bullion, Special Drawing Rights
1
[, Asian Monetary Units
2
[, Islamic Dinars]] or approved foreign exchange, and
(b) the remainder of the assets shall be held in-
(i) Taka coins;
(ii) Taka securities of any maturity;
(iii) Such bills of exchange and promissory notes payable in Bangladesh as are eligible for purchase by the Bank under sub-clauses (a), (b) and (f) of clause (2) of Article 16;
(iv) Promissory notes obtained by the Bank in respect of advances and loans made under clause (4) of Article 16 against such securities as are mentioned in sub-clauses (a) and (b) of that clause; and
(v) Promissory notes obtained by the Bank in respect of advances and loans made under clause (10) of Article 16.
3
[(2) For the purposes of this Article,-
(a) gold coin, gold bullion and silver bullion shall be valued at the market value of the fine gold or silver content thereof, as the case may be;
(b) Taka coin shall be valued at its face value; and
(c) Taka securities and securities specified in clause (4) shall be valued at the market value for the time being obtaining or face value, whichever is less.]
(a) of the total amount of the assets, assets of such value as the Government in consultation with the Bank, may, by notification in the official Gazette, specify shall be held in gold coins, gold bullion, silver bullion, Special Drawing Rights
1
[, Asian Monetary Units
2
[, Islamic Dinars]] or approved foreign exchange, and
(b) the remainder of the assets shall be held in-
(i) Taka coins;
(ii) Taka securities of any maturity;
(iii) Such bills of exchange and promissory notes payable in Bangladesh as are eligible for purchase by the Bank under sub-clauses (a), (b) and (f) of clause (2) of Article 16;
(iv) Promissory notes obtained by the Bank in respect of advances and loans made under clause (4) of Article 16 against such securities as are mentioned in sub-clauses (a) and (b) of that clause; and
(v) Promissory notes obtained by the Bank in respect of advances and loans made under clause (10) of Article 16.
3
[(2) For the purposes of this Article,-
(a) gold coin, gold bullion and silver bullion shall be valued at the market value of the fine gold or silver content thereof, as the case may be;
(b) Taka coin shall be valued at its face value; and
(c) Taka securities and securities specified in clause (4) shall be valued at the market value for the time being obtaining or face value, whichever is less.]
(3)Of the gold coin and gold or silver bullion held as assets not less than seventeen-twentieths shall be held in the custody of the Bank including its branches, offices or agencies, and the gold or silver belonging to the Bank which is in any other bank or in any mint or treasury or in transit may be reckoned as part of the assets.
(4)For the purposes of this Article the approved foreign exchange which may be held as part of the assets shall be in any of the following forms, namely:-
(a) balances standing to the credit of the Bank with the principal currency authority of a country whose currency is an approved foreign exchange, or at any bank in such country;
(b) bills of exchange bearing two or more good signatures having a maturity not exceeding one hundred and eighty days and drawn on and payable at any place in a country whose currency is an approved foreign exchange; and
(c) securities of a Government with an unexpired currency of not more than five years and payable in a currency which is an approved foreign exchange.
(a) balances standing to the credit of the Bank with the principal currency authority of a country whose currency is an approved foreign exchange, or at any bank in such country;
(b) bills of exchange bearing two or more good signatures having a maturity not exceeding one hundred and eighty days and drawn on and payable at any place in a country whose currency is an approved foreign exchange; and
(c) securities of a Government with an unexpired currency of not more than five years and payable in a currency which is an approved foreign exchange.
(5)Restrictions relating to maturity shall not apply to securities mentioned in clause (4) held by the Bank on the appointed day or any securities transferred to and vested in the Bank under Article 5.
§ 31Notwithstanding anything contained in the fore
Notwithstanding anything contained in the foregoing provisions, the Bank may, with the previous sanction of the Government, for periods not exceeding six months in the first instance, which may with the like sanction be extended from time to time by periods not exceeding three months at a time, hold as assets gold coin, gold or silver bullion,
1
[Special Drawing Rights, Asian Monetary Units
2
[, Islamic Dinars]] or approved foreign exchange of less aggregate amount than that required by sub-clause
3
[(a)] of clause (1) of Article 30.
§ 32(1) The liabilities of the Issue Department sh
(1)The liabilities of the Issue Department shall be an amount equal to the total of the amount of the Bank Notes for the time being in circulation.
(2)For the purposes of this Article any Bank Note which has not been presented for payment within forty years from the first day of July following the date of its issue shall be deemed not to be in circulation and the value thereof shall notwithstanding anything contained in clause (2) of Article 26 be paid by the Issue Department to the Banking Department; but any such Bank Note if subsequently presented for payment, shall be paid by the Banking Department.
§ 33(1) The Bank shall issue Taka coin on demand i
(1)The Bank shall issue Taka coin on demand in exchange for Bank Notes and Bank Notes on demand in exchange for coin which is legal tender in Bangladesh.
(2)The Bank shall in exchange for Bank Notes of
1
[ten] Taka or upwards supply Bank Notes of lower value or coins which are legal tender in Bangladesh under the Bangladesh Coinage Order, 1972, in such quantities as may in the opinion of the Bank be required for circulation. The Government shall supply such coins to the Bank on demand and if it fails to do so at any time the Bank shall be released during the period of such failure from obligation to supply them to the public.
1
[ten] Taka or upwards supply Bank Notes of lower value or coins which are legal tender in Bangladesh under the Bangladesh Coinage Order, 1972, in such quantities as may in the opinion of the Bank be required for circulation. The Government shall supply such coins to the Bank on demand and if it fails to do so at any time the Bank shall be released during the period of such failure from obligation to supply them to the public.
(3)The Government shall take over from the Bank at such times and in such quantities as the Bank may, with the previous approval of the Government, determine Taka coins which are not required for purposes of circulation against payment.
§ 34The Government shall not re-issue any Taka coi
The Government shall not re-issue any Taka coins taken over under clause (3) of Article 33 nor put into circulation any Taka coin except through the Bank and the Bank shall not dispose of Taka coin otherwise than for purposes of circulation or by delivery to the Government under the preceding Article.
§ 35(1) No person in Bangladesh other than the Ban
(1)No person in Bangladesh other than the Bank or as expressly authorised by this Order, the Government shall draw, accept, make or issue any Bill of Exchange, Hundi, Promissory Note or engagement for the payment of money payable to bearer on demand, or borrow, owe or take up any sum or sums of money on the Bills, Hundis or Notes payable to bearer on demand of any such persons, but such cheques, or Drafts, including Hundi, payable to bearer on demand or otherwise may be drawn on a person's account with a banker.
(2)Notwithstanding anything contained in the
Negotiable Instruments Act, 1881
, no person in Bangladesh other than the Bank, or as expressly authorised by this Order, the Government shall make or issue any Promissory Note expressed to be payable to the bearer of the instrument.
Negotiable Instruments Act, 1881
, no person in Bangladesh other than the Bank, or as expressly authorised by this Order, the Government shall make or issue any Promissory Note expressed to be payable to the bearer of the instrument.
(3)Any person contravening the provision of this Article shall be punishable upon conviction with fine which may extend to double the amount of the Bill, Hundi, Promissory Note or engagement in respect whereof the offence is committed.
(4)No prosecution under this Article shall be instituted except on complaint made in writing on behalf of the Bank.
§ 36[(1) Every scheduled bank shall maintain with
1
[(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 Bank 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.
(2)Based on the monetary policy objectives pursued by the Bank, it shall prescribe from time to time the terms and conditions of admissibility of interest, and the rate of interest, on the required minimum balances and/or on amounts in excess of the required minimum balances.]
2
[ * * * ]
2
[ * * * ]
(3)Every scheduled bank shall send to the Bank returns signed by two responsible officers of such bank containing such information as may be deemed necessary for carrying out the purposes and objects of this Order at such periods of time as the Bank may from time to time direct.
3
[(4) If at the close of business on any day before the day fixed for the next return under the preceding clause, the balance held at the Bank by any scheduled bank is below the minimum fixed by clause (1) such scheduled bank may be ordered by the Bank to pay the Bank in respect of such day penal interest at such rate above the Bank rate as may be determined by the Bank from time to time on the amount by which the balance with the Bank falls short of the fixed minimum, and if, on the day on which the next return is due, such balance is still below the fixed minimum as disclosed by this return, Bangladesh Bank may impose a higher rate of penal interest above the Bank rate in respect of that day and each subsequent day on which the balance held at the Bank at the close of business on the day is below the fixed minimum.]
3
[(4) If at the close of business on any day before the day fixed for the next return under the preceding clause, the balance held at the Bank by any scheduled bank is below the minimum fixed by clause (1) such scheduled bank may be ordered by the Bank to pay the Bank in respect of such day penal interest at such rate above the Bank rate as may be determined by the Bank from time to time on the amount by which the balance with the Bank falls short of the fixed minimum, and if, on the day on which the next return is due, such balance is still below the fixed minimum as disclosed by this return, Bangladesh Bank may impose a higher rate of penal interest above the Bank rate in respect of that day and each subsequent day on which the balance held at the Bank at the close of business on the day is below the fixed minimum.]
(5)When under the provisions of clause (4) penal interest
4
[* * *] has become payable by a scheduled bank, if thereafter on the day fixed for the next return under clause (3) the balance held at the Bank is still below the fixed minimum as disclosed by this return-
(a) every director and officer of the scheduled bank, who is knowingly and wilfully a party to the default, shall by order of the Bank be punishable with fine which may extend to
5
[Taka one lakh] and with a further fine which may extend to
6
[Taka one lakh] for each subsequent day on which the default continues; and
(b) the Bank may prohibit the scheduled bank from receiving after the said day any fresh deposit, and if default is made by the scheduled bank in complying with such prohibition, every director and officer of the scheduled bank who is knowingly and wilfully a party to such default or who through negligence or otherwise contributes to such default shall by order of the Bank be punishable in respect of each default with fine which may extend to
7
[Taka one lakh] for each day after the first on which a deposit received in contravention of such prohibition is retained by the scheduled bank.
8
[* * *]
4
[* * *] has become payable by a scheduled bank, if thereafter on the day fixed for the next return under clause (3) the balance held at the Bank is still below the fixed minimum as disclosed by this return-
(a) every director and officer of the scheduled bank, who is knowingly and wilfully a party to the default, shall by order of the Bank be punishable with fine which may extend to
5
[Taka one lakh] and with a further fine which may extend to
6
[Taka one lakh] for each subsequent day on which the default continues; and
(b) the Bank may prohibit the scheduled bank from receiving after the said day any fresh deposit, and if default is made by the scheduled bank in complying with such prohibition, every director and officer of the scheduled bank who is knowingly and wilfully a party to such default or who through negligence or otherwise contributes to such default shall by order of the Bank be punishable in respect of each default with fine which may extend to
7
[Taka one lakh] for each day after the first on which a deposit received in contravention of such prohibition is retained by the scheduled bank.
8
[* * *]
(6)Any scheduled bank failing to comply with the provisions of clause (3) shall by order of the Bank be liable to pay to the Bank a penalty of
9
[Taka twenty five thousand] for each day during which the failure continues.
9
[Taka twenty five thousand] for each day during which the failure continues.
(7)Whoever in any return under this Article wilfully or recklessly makes a statement false in any material particular or wilfully or recklessly omits to state a material particular shall by order of the Bank be punishable with fine which may extend to
10
[Taka ten lakh] in respect of each such return.
10
[Taka ten lakh] in respect of each such return.
(8)The penalties imposed by clauses (4), (5), (6) and (7) shall be payable on demand made by the Bank and in the event to refusal by the defaulting bank, director or officer to pay on such demand, may be levied by a direction of the Civil Court having jurisdiction in the area where an office of the defaulting bank is situated, such direction being made only upon application made in this behalf to the Court by the Bank, with the previous sanction of the Government.
§ 37(1) Bank schedule Bank account Bank update list tax।
37। (1) Bank (2) - () under Bank tax schedule Bank account Bank update list tax।
(2)Bank official Gazette notification —
() Bank Bank schedule Bank declaration tax , —
() Bank Bank schedule Bank declaration tax , —
(1)Bank company, Bank, in force Act under tax company ;
(2)Bank company Act, 1991 (1991 14 Act) 13 under tax capital ;
Bank Bank tax ;
Bank Bank tax ;
(3)Bank tax functions tax ;
() schedule Bank - direction —
() schedule Bank - direction —
(1)- () tax Bank tax ;
(2)Bank , tax tax:
Bank, schedule Bank application , - () under direction Bank tax tax , schedule Bank () (2) (3) ;
() schedule Bank tax schedule Bank list tax।
- (2) “” capital , Bank tax ।
Bank, schedule Bank application , - () under direction Bank tax tax , schedule Bank () (2) (3) ;
() schedule Bank tax schedule Bank list tax।
- (2) “” capital , Bank tax ।
§ 38The Bank may require any Corporation with whic
The Bank may require any Corporation with which it has any transactions under Article 16 to furnish returns referred to in clause (3) of Article 36 and if it does so require, the provisions of clauses (6), (7) and (8) of Article 36 shall apply, so far as may be, to such Corporation as if it were a scheduled bank.
§ 38AThe Governor shall at least once a year or a
1
[38A. The Governor shall at least once a year or at any other instance, if so summoned appear before the Parliamentary Committee on Finance to report on the monetary policy and of other activities of the Bank and to answer questions.]
§ 39The Bank shall compile and publish in such ma
1
[39. The Bank shall compile and publish in such manner and at such times as the Board may consider appropriate a consolidated statement from such information as may be received under this Order.]
§ 40(1) The Bank shall prepare and transmit to the
(1)The Bank shall prepare and transmit to the Government a weekly account of the Issue Department and of the Banking Department in such form as the Government may, by notification in the official Gazette direct. The Government shall cause these accounts to be published weekly in the official Gazette.
(2)The Bank shall also, within two months from the date on which the annual accounts of the Bank are closed, transmit to the Government a copy of the annual accounts signed by the Governor, the Deputy Governor, if any, and the Chief Accounting Officer of the Bank, and certified by the Auditors together with a report by the Board on the working of the Bank throughout the year, and the Government shall cause such accounts and report to be published in the official Gazette.
§ 41(1) No suit or other legal proceedings shall l
(1)No suit or other legal proceedings shall lie against the Bank or any of its Officer for anything which is in good faith done or intended to be done in pursuance of Article 36 or Article 37 or Article 38 or Article 39 or Article 40 or in pursuance of the provisions of Chapter IV.
(2)No suit or other legal proceedings shall lie against the Bank or any of its Officers for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of Article 36 or Article 37 or Article 38 or Article 39 or Article 40, or in pursuance of the provisions of Chapter IV.
§ 42In this Chapter, unless the context otherwise
In this Chapter, unless the context otherwise requires,-
(a) “banking company” means the banking company as defined in
1
[clause (cc) of article 2 of this Order] and includes the apex co-operative bank or any other banking or financial institution notified by the Government in this behalf;
(b) “borrower” means any person to whom any credit limit has been sanctioned by any banking company, whether availed of or not, and includes-
(i) in the case of a company or corporation, its subsidiaries;
(ii) in the case of a Hindu undivided family, any member thereof or any firm in which such member is a partner;
(iii) in the case of a firm, any partner thereof or any other firm in which such partner is a partner; and
(iv) in the case of an individual, any firm in which such individual is a partner;
(c) “credit information” means any information relating to-
(i) the amounts and the nature of loans or advances and other credit facilities granted by a banking company to any borrower or class of borrowers;
(ii) the nature of security taken from any borrower for credit facilities granted to him; and
(iii) the guarantee furnished by a banking company for any of its customers.
§ 43The Bank may- (a) collect, in such manner as i
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.
§ 44(1) For the purpose of enabling the Bank to di
(1)For the purpose of enabling the Bank to discharge its functions under this Chapter, it may at any time direct any banking company to submit to it such statements relating to such credit information and in such form and within such time as may be specified by the Bank from time to time.
(2)A banking company shall, notwithstanding anything to the contrary contained in any other law for the time being in force or in any instrument regulating the constitution thereof or in any agreement executed by it relating to the secrecy of its dealing with its constituents, be bound to comply with any direction issued under clause 1.
§ 45(1) A banking company may, in connection with
(1)A banking company may, in connection with any financial arrangement entered into or proposed to be entered into by it with any person, make an application to the Bank in such form as the Bank may specify requesting it to furnish the applicant with such credit information as may be specified in the application.
(2)On receipt of an application under clause (1), the Bank may, as soon as may be, furnish the applicant with such credit information relating to the matters specified in the application, as may be in its possession:
Provided thatthe information so furnished shall not disclose the names of the banking companies which have submitted such information to the Bank.
(3)The Bank may in respect of each application levy such fees, as it may deem fit, for furnishing credit information.
§ 46(1) Any credit information contained in any st
(1)Any credit information contained in any statement submitted by a banking company under Article 44 or furnished by the Bank to any banking company under Article 45 shall be treated as confidential and shall not, except for the purposes of this Chapter, be published or otherwise disclosed.
(2)Nothing in this Article shall apply to-
(a) the disclosure by any banking company, with the previous permission of the Bank, of any information furnished to the Bank under Article 44;
(b) the publication by the Bank, if it considers necessary in the public interest so to do, of any information collected by it under Article 44, in such consolidated form as it may deem fit without disclosing the name of any banking company or its borrowers.
(a) the disclosure by any banking company, with the previous permission of the Bank, of any information furnished to the Bank under Article 44;
(b) the publication by the Bank, if it considers necessary in the public interest so to do, of any information collected by it under Article 44, in such consolidated form as it may deem fit without disclosing the name of any banking company or its borrowers.
(3)Notwithstanding anything contained in any law for the time being in force, no Court, tribunal or
1
[other authority except Parliament] shall compel the Bank or any banking company to produce or to give inspection of any statement submitted by that banking company under Article 44 or to disclose any credit information furnished by the Bank to that banking company under Article 45.
1
[other authority except Parliament] shall compel the Bank or any banking company to produce or to give inspection of any statement submitted by that banking company under Article 44 or to disclose any credit information furnished by the Bank to that banking company under Article 45.
§ 47No person shall have any right, whether in con
No person shall have any right, whether in contract or otherwise, to any compensation for any loss incurred by reason of the operation of any of the provisions of this Chapter.
The Bangladesh Bank Order, 1972 is the founding legislation that established the Bangladesh Bank as the central bank of Bangladesh. It applies to all banking and financial activities within the jurisdiction of Bangladesh Bank. The Order sets out the Bank's capital structure, management (Governing Board consisting of a Governor and Directors), and its primary functions including the formulation and implementation of monetary policy, regulation and supervision of banks and financial institutions, management of foreign exchange reserves, issuance of currency notes (the Taka), and acting as the banker to the Government. Key mechanisms include the Bank's authority to grant licences to scheduled banks, to regulate interest rates, to control credit through cash reserve ratio and statutory liquidity requirements, to act as lender of last resort, and to maintain the external value of the Taka. Notable provisions include the Bank's power to inspect and supervise banks (Section 42), to call for information and returns from banks, and to impose penalties for non-compliance. The Order established the institutional framework for Bangladesh's financial system following independence and has been amended numerous times to adapt to evolving economic conditions. The Bank continues to operate under this Order as the apex monetary authority of Bangladesh.