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02/12/2022
Laws of Bangladesh

The Bangladesh Banks (Nationalisation) Order, 1972 (President's Order)

( PRESIDENT'S ORDER NO. 26 OF 1972 )

21. (1) Every new bank shall carry on and transact all kinds of banking business.
 
 
 
 
(2) Without prejudice to the generality of the foregoing provision, every new bank may, in particular, carry on and transact the following kinds of business, namely:-
 
 
 
 
(a) advancing and lending of money, and opening of cash credits upon the security of-
 
 
 
 
(i) stocks, funds and securities in which a trustee is authorised to invest trust money by any law for the time being in force;
 
 
 
 
(ii) debentures or other securities for money issued under the authority or any law for the time being in force or under the authority of the Government;
 
 
 
 
(iii) goods which, or the documents of title to which, are deposited with or assigned to, the bank as security for such advances, loans or credits;
 
 
 
 
(iv) debentures of companies with limited liability, subject to such directions as may be issued by the Board;
 
 
 
 
(v) shares of companies with limited liability, in accordance with such directions in this regard as may be issued from time to time by the Bangladesh Bank;
 
 
 
 
(vi) goods, including tea crops and raw or finished jute products which are hypothecated to the bank as security for such advances, loans or credits;
 
 
 
 
(vii) accepted bills of exchange and promissory notes endorsed by the payees;
 
 
 
 
(viii) immovable property or documents of title relating thereto, subject to such directions as may be issued from time to time by the Bangladesh Bank:
 
 
 
 
Provided that any advances or loans which are guaranteed by the Government may be made without any specified security.
 
 
 
 
 
 
(b) selling and realisation of proceeds or sale of any such promissory notes, debentures, stock receipts, bonds, annuities, stocks, shares, securities or goods which, or the documents of title to which, have been deposited with, or pledged, hypothecated, assigned or transferred to, the bank as security for such advances, loans or credits or which are held by the bank or over which the bank is entitled to any lien or charge in respect of any such advance or loan or credit or any debt or claim of the bank, and which have not been redeemed in accordance with the terms and conditions, if any, of such deposits, pledge, hypothecation, assignment or transfer;
 
 
 
 
(c) advancing and lending of money to Courts of Wards upon the security of estates in their charge or under their superintendence and the realisation of such advances or loans and any interest due thereon;
 
 
 
 
(d) issuing of letters of credit;
 
 
 
 
(e) buying and selling of gold and silver whether coined or uncoined;
 
 
 
 
(f) receiving of deposits and keeping cash accounts and accepting of jewelleries, title deeds, and other valuable goods on such terms as may be agreed on;
 
 
 
 
(g) managing, selling and realising of all properties, 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, and the acquisition and holding of, and generally the dealing with, any right, title or interest in any property, movable or immovable, which may be the bank's security for any advance or loan may be connected with any such security;
 
 
 
 
(h) transacting of pecuniary agency business on commission and entering into contracts of indemnity, suretyship or guarantee with specific security or otherwise and the underwriting, participation in, and carrying out of the issue of any stocks, shares, debentures and other securities;
 
 
 
 
(i) administration of estates for any purpose whether as an executor, trustee or otherwise and the acting as agent on commission in the transaction of the following kinds of business, namely:-
 
 
 
 
(i) buying, selling, transferring and taking charge of any security or any share in any public company and also receiving the proceeds thereof, whether principal, interest or dividend;
 
 
 
 
(ii) remittance of such proceeds by public or private bills of exchange, payable either in Bangladesh or elsewhere;
 
 
 
 
(j) drawing of bills of exchange and the granting of letters of credit payable out of Bangladesh;
 
 
 
 
(k) buying of bills of exchange payable out of Bangladesh;
 
 
 
 
(l) borrowing of money for the purpose of the bank's business, and the giving of security for money so borrowed by pledging assets or otherwise;
 
 
 
 
(m) paying, receiving, collecting and remitting money, bullion and securities under any agreement with the Bangladesh Bank as its agent on behalf of the Government, or undertaking and transacting any business which the Bangladesh Bank may from time to time entrust to it;
 
 
 
 
(n) establishing and discontinuing of branches and agencies;
 
 
 
 
(o) acquiring, maintaining and transferring of the bank's residential and business premises;
 
 
 
 
(p) taking over of the business, including the capital, assets and liabilities of any other bank, with the sanction of the Government;
 
 
 
 
(q) granting of advances or loans to any other bank for any purpose authorised by the Board;
 
 
 
 
(r) with the previous permission of the Bangladesh Bank:-
 
 
 
 
(i) investing of the funds of the bank in any bank incorporated outside Bangladesh, and
 
 
 
 
(ii) participation in the management and administration of any such bank in which the funds of the bank have been invested; and
 
 
 
 
(s) generally doing of all such matters and things as may be incidental or subsidiary or conducive to the promotion or advancement of the business or the bank, including foreign exchange business.
 
 
 
 
 
 
(3) Notwithstanding anything contained in clauses (1) and (2), the bank may carry on and transact such other business as the Government or the Bangladesh Bank may direct from time to time.

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Ministry of Law, Justice and Parliamentary Affairs