The Bangladesh Bank (BB) issued a master circular on Thursday mandating commercial banks to submit accurate deposit-insurance premium information semi-annually without delay.
The directive stressed timely and correct data submission, threatening penalties for violations under the Bank Company Act, 1991.
"Banks must send accurate information relating to deposit insurance premiums to the central bank every six months, without any delay," the circular read. "Any mistakes or delays will result in penalties as per the relevant sections of the Act." This latest measure builds upon the existing deposit insurance system, which was established in 1984 to protect small depositors.
All scheduled banks in Bangladesh are legally required to participate in the Deposit Insurance Trust Fund as per 'The Bank Deposit Insurance Act, 2000'.
Section 5 of this Act mandates that all scheduled banks contribute deposit premiums to the central bank.
However, the central bank has observed instances of delayed and inaccurate information from banks regarding their premiums. This master circular consolidates previous directives by the Deposit Insurance Department, in a bid to streamline and ensure the accuracy of submitted data.
The circular warns of stricter actions for intentional data manipulation, citing Section 109 (2) of the Bank Company Act -- which mentions imprisonment up to three years and a fine at the same time.
Besides, delayed submissions will incur penalties under Section 109 (7) of the same Act -- which mentions fines.
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