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B'desh apex bank asks for deduction fund report
Aug '16
The apex bank of Bangladesh has in a notice ordered banks concerned to submit their deduction of LC encashment report to the secretary of the Central Fund Board of Directors (RMG Sector) within the given timeframe. The directive comes close on the heels of deposit of only about Tk 72.28 lakh (approx $91,000) in July against the expected Tk 6 crore.

As per Bangladesh labour rules, after the LC encashment, 0.03 per cent of the LC value has to be deposited in a Central Fund (RMG Sector) within seven days by the concerned bank.

The value of total garment export was about Tk 22,000 crore in June and the expected deposit in the Central Fund (RMG Sector) was about Tk 6 crore in July, the labour secretary of Bangladesh said in a letter to Bangladesh Bank governor.

However, the total deposited amount during the fortnight from July 17 to August 1 was just Tk 72.28 lakh. This means that most of the concerned banks were not reporting to the labour ministry whether they were deducting the cess at 0.03 per cent of LC, the letter said.

“Only 10 banks submitted their Central Fund report, while major LC dealing banks have not been sending their reports,” Bangladeshi media quoted the letter as saying. “It is not clear whether these banks have started deducting the amount, so will be helpful to know if the concerned banks send reports mentioning that they have zero contribution.”

Fibre2Fashion News Desk – India

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