Bangladesh Bank on Thursday increased the cost limit for banks to purchase their motorcars and jeeps. The banks were earlier allowed to buy motorcars at a maximum cost of Tk 35 lakh and Pajero jeeps assembled by Progoti costing up to Tk 85 lakhs. The BB will now permit the banks to purchase sedan car costing up to Tk 50 lakh and jeep (sports utility vehicle) at a cost of Tk 1 crore.
To this end, the BB issued a circular to managing directors and chairmen of all banks asking them not to purchase the motorcars and jeeps violating the new BB directive.
A bank is not allowed to purchase any types of motorcar by receiving lease financing from other banks
or non-bank financial institutions, the circular said.
The bank will be able to replace their vehicles after using them at least for five years.
The banks will have to present the operating cost of vehicles in their annual general meeting and six-monthly board of directors meeting.
The BB also set guidelines to use the floor space of the banks’ branches.
The central bank circular said that an urban branch of a bank will use highest 5,000 square feet floor space while a rural bank will use maximum 2,000 square feet floor space.
The banks will be able to spend highest Tk 1,500 per square feet space to set up volt, to design interior decoration and office furniture.
The rules, however, will not be applicable for setting up information technology related equipments.
-With New Age input
