Banks now can set up new ATM and other electronic booths for automatic banking in the country of their own free will, needing no prior permission from the regulator.
In a latest circular Bangladesh Bank (BB) relieved the banks of taking its permission in this matter.
The Banking Regulation and Policy Department (BRPD) of the central bank issued Tuesday the circular revising the previous one of 2012 to this effect.
Earlier, the banks had to take approval from the BB for installing new ATM booths.
According to the revised policy guidelines, the banks, however, must take permission from their board of directors regarding the rent and other costs for installation of ATM booths.
The central bank in the circular warned of necessary actions, including closure of the booths, if the BB inspections found any irregularities relating to such rent and other costs.
"At such booths, no other banking transactions, except electronic ones, shall be conducted," he said.
The new circular also relaxed the earlier policy that had made it mandatory prior permission from BB in renting, leasing or renewing any type of establishments, and had barred giving advance money for more than three years.
Under the relaxed policy, the banks were also relieved of taking such permission of BRPD regarding the renewal, if the maximum hike in establishment rent in a term (three years and above) remains limited to 15 per cent.
But the BRPD will have to be informed about it within one month after the banks' board of directors gives approval for the renewal, the new circular says.
Earlier on August 18, 2013, The Financial Express published a news report that installation of ATM booths in the country had significantly been reduced since January 2014 allegedly due to the BB policy tightening the installation process.
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Banks now free to set up ATMs
FE Report | Published: January 14, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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