16. The Bank is authorised to carry on and transact the several kinds of business hereinafter specified, namely:-
[ (1) The accepting of money on deposit from and the collection of money for the Government, foreign Governments, domestic and foreign banks, domestic and foreign financial institutions and local authorities with or without interest.]
[ * * *]
(2) (a) The purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in Bangladesh and arising out of bona fide commercial or trade transactions bearing two or more good signatures one of which shall be that of a scheduled bank, and maturing within one hundred eighty days, from the date of such purchase or rediscount, exclusive of days of grace;
(b) The purchase, sale and rediscount of bills of exchange and promissory notes, drawn on and payable in Bangladesh and bearing two or more good signatures one of which shall be that of a scheduled bank or the apex co-operative bank and drawn or issued for the purpose of financing seasonal agricultural operations or the marketing of crops, and maturing within fifteen months from the date of such purchase or rediscount exclusive of days of grace;
Explanation - For the purpose of this sub-clause-
[ (i) The expression ‘agricultural operations' include cultivation of crops, plantation, agricultural machineries and implements, fertilizers and pesticides, fishing, pisciculture, animal husbandry, forestry, horticulture and allied activities;]
(ii) “crops” include products of agricultural operations;
(iii) the expression “marketing of crops” includes the processing of crops prior to marketing by agricultural producers or any organisation of such producers;
(c) The purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in Bangladesh and bearing two or more good signatures, one of which shall be that of the apex co-operative bank or a financial corporation and drawn or issued for the purpose of financing the production or marketing activities of cottage and small scale industries approved by the Bank and maturing within eighteen months from the date of such purchase or rediscount, exclusive of days of grace:
Provided that the payment of the principal and interest of such bills of exchange or promissory notes is guaranteed by the Government to the satisfaction of the Bank.
(d) The making to a corporation declared eligible by the Government in consultation with the Bank of loans and advances-
(i) repayable on demand or on the expiry of fixed periods not exceeding ninety days from the date of such loan or advance, against securities of the Government; or
(ii) repayable on the expiry of fixed periods not exceeding eighteen months from the date of such loan or advance, against securities of the Government of any maturity, or against bonds and debentures issued by the Corporation to which the loan or advance is made, and guaranteed by the Government and maturing within a period not exceeding eighteen months from the date of such loan or advance;
(e) The purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in Bangladesh and bearing the signature of a scheduled bank, and issued or drawn for the purpose of holding or trading in securities of the Government and maturing within ninety days from the date of such purchase or rediscount, exclusive of days of grace;
(f) The purchase, sale and rediscount of bills of exchange and promissory notes drawn on and payable in Bangladesh and bearing two or more good signatures one of which shall be that of a scheduled bank or the apex co-operative Bank or any corporation approved by the Government and having as one of its objects the making of loans and advances in cash or kind, drawn and issued for financing the development of agriculture, or of agricultural or animal produce or the needs of industry, having maturities not exceeding ten years from the date of such purchase or rediscount:
Provided that the Bank may from time to time issue to a corporation which may have dealings with the Bank under this sub-clause any directions which can by issued to a banking company under the [ ব্যাংক কোম্পানী আইন, ১৯৯১ (১৯৯১ সনের ১৪ নং আইন)], and in the event of anybody, while carrying out any direction hereunder, either wilfully making a false statement or wilfully omitting to make material statement shall be punishable under [ sub-section (2) of section 109 of the said Act of 1991], and in the event of any contravention or default in compliance with any direction, any Director or Officer who is knowingly a party to the contravention or default shall be punishable under [ sub-section (7) of section of the said section], and the provisions of [ section 111 of the said Act] shall apply to such proceedings as if such corporation were a banking company;
(g) The purchase, sale and rediscount of such Government guaranteed debentures issued by a public company or corporation established by or under any law for the time being in force as the Bank may from time to time approve in this behalf;
(h) To guarantee, to the extent the Bank deems fit, issue of loans and debentures by the scheduled banks or financial institutions to rural credit institutions.
(i) To guarantee funds of scheduled banks in agricultural credit operations to the extent the bank deems fit.
(3) (a) The purchase and sale of approved foreign exchange;
(b) The purchase, sale and rediscount of bills of exchange including treasury bills drawn in or on any place in countries whose currency has been declared as approved foreign exchange and maturing within one hundred and eighty days from the date of purchase:
Provided that no such purchase, sale or rediscount shall be made in Bangladesh except with a scheduled bank;
(c) The keeping of balances with banks in countries whose currency has been declared as approved foreign exchange;
[ (d) subject to the approval of the Board the placing of balances abroad with asset management companies of global standing and reputation for investment in countries whose currencies have been declared as approved foreign exchange:
Provided that the placement under this clause shall not exceed 25 percent of the balance kept abroad.]
(4) The making to local Authorities, scheduled banks or co-operative banks of advances and loans repayable on demand or on the expiry of fixed periods not exceeding ninety days against the security of-
(a) stocks, funds and securities, other than immovable property, in which a trustee is authorised to invest trust money by any law for the time being in force in Bangladesh;
(b) gold or silver or documents of title to the same;
(c) such bills of exchange and promissory notes as are eligible for purchase or rediscount by the bank; and
(d) promissory notes of any scheduled bank supported by documents of title relating to goods, such documents having been transferred, assigned or pledged to any such bank as security, for a cash credit or overdraft granted for bona fide commercial or trade transactions or for the purpose of financing seasonal agricultural operations or the marketing of crops;
(5) The making of loans and advances out of the Rural Credit Fund established under Article 60 for the purposes specified therein;
(6) The making of loans and advances out of the Agricultural Credit Stabilisation Fund established under Article 61 for the purposes specified therein;
(7) The making of loans and advances out of the Industrial Credit Fund established under Article 62 for the purposes specified therein;
(8) The making of loans and advances out of the Export Credit Fund established under Article 63 for the purposes specified therein;
(9) The making to the Government of advances repayable in each case not later than three months from the date of the making of the advance;
(10) The making to institutions or banks, specially established for the purpose of promoting agricultural or industrial development in the country or co-operative banks of advances and loans for such amounts and on such terms and conditions as the Board may decide from time to time;
(11) The purchase holding and sale of shares and debentures of any company or corporation or institution as may be decided in consultation with the Government;
(12) The issue and purchase of telegraphic transfers, demand drafts and other kinds of remittances made payable at its own branches, offices or agencies;
(13) The drawing, accepting, making and issue, on its own account or on account of the Government, as the case may be, of any bill of exchange, hundi, promissory note or engagement for the payment within or without Bangladesh, of Bangladesh or foreign currency payable to bearer or to a banker on demand; but no such business shall be carried on or transacted without the previous approval of the Government;
[ (13A) The issue of its own negotiable securities on such rate of interest as the Bank may decide;]
(14) (a) Subject to sub-clause (b) the purchases and sale of securities of countries whose currency has been declared as approved foreign exchange with an unexpired currency of not more than ten years;
(b) The restrictions relating to maturity shall not apply to securities held by the Bank on the date on which this Order comes into force or any securities that may be received as assets including those transferred to and vested in the Bank under Article 5;
(15) (a) The purchase and sale of securities of the Government, or of such securities of a Local Authority as may be specified in this behalf by the Government by notification in the official Gazette on the recommendation of the Board;
(b) Securities, Debentures and Shares fully guaranteed as to principal and interest by the Government shall be deemed for the purpose of this clause to be securities of the Government;
(c) The amount of such securities held at any time in the Banking Department shall be so regulated that the total value of such securities shall not exceed the aggregate amount of the capital of the Bank, the Reserve Fund and four-fifths of the Liabilities of the Banking Department in respect of deposits;
(16) The custody of monies, securities and other articles of value and the collection of the proceeds, whether principal, interest or dividends of any such securities;
(17) The sale and realisation of all property, whether movable or immovable which may in any way come into the possession of the Bank in satisfaction, or part satisfaction of any of its claims;
(18) The acting as agent to the Government, or any Local Authority in the transaction of any of the following kinds of business, namely:-
(a) the purchase and sale of gold or silver or approved foreign exchange;
(b) the purchase, sale, transfer and custody of bills of exchange, securities or shares in any company;
(c) the collection of the proceeds, whether principal, interest or dividends, or any securities or shares;
(d) the remittance of such proceeds at the risk of the principal, by bills of exchange payable either in Bangladesh or elsewhere;
(e) and the management of public debt;
(19) The purchase and sale of gold coin and gold or silver bullion;
(20) The opening of an account with or the making of any agency arrangement with, and the acting as agent or correspondent of a bank incorporated in any country outside Bangladesh or the principal currency authority of any country under the law for the time being in force in that country or any international or regional bank formed by such principal currency authorities, and the investing of the funds of the Bank in the shares and securities of any such international or regional bank;
[ (21) (a) Subject to sub-clauses (b) and (c), the borrowing of money for the purpose of business of the Bank and the giving of security for money so borrowed;
(b) No money shall be borrowed under this clause from any person in Bangladesh other than a scheduled bank for a period exceeding three months and an amount not at any time exceeding the amount of the capital of the Bank;
(c) No money shall be borrowed under this clause from any foreign national in or outside Bangladesh other than foreign and international banks, companies, institutions or concerns;]
(22) The making and issue of bank notes subject to the provisions of this Order;
(23) The performance of the functions of the Bank under the International Financial Organisations Order, 1972;
(24) Establish credits and give guarantees; and
(25) The exercise of powers and functions and the performance of duties entrusted to the Bank under this Order or under any other law for the time being in force;
(26) Generally, the doing of all such matters and things as may be necessary, incidental to or consequential upon the exercise of its powers or the discharge of its duties or functions under this Order.