Dhaka, Bangladesh (BBN) – Two proposed commercial banks have got extended time to comply with the Bangladesh Bank’s (BB) requirements for licences to run their businesses, officials said.

The decision was taken at a board of directors’ meeting of the BB held at its headquarters on Tuesday with its Governor Atiur Rahman in the chair.

Proposed NRB Global Bank Limited is allowed to comply with the requirements of the letter of intent (LoI), issued by the Bangladesh Bank on April 17, within March 31, 2013, while Modhumoti Bank Limited will have to submit documents for the same purpose by December 31 this year, according to the decision.

“We’ve also informed the board about the latest position of the seven other proposed commercial banks,” a BB senior official told BBN in Dhaka, adding that the BB has submitted a ‘status paper’ on the other proposed banks at the meeting highlighting their current positions including loan default and tax-related issues.

“The BB has sent necessary documents of five proposed banks to the National Board of Revenue (NBR) for checking tax-related issues of the sponsors to ensure whether the blocked money for maintaining the banks’ paid-up capital was taxed or not,” the BB official noted.

Under the existing provisions, the paid-up capital of a new bank will be no less than BDT 4.0 billion, and sponsors of the non-resident Bangladeshi (NRB) banks will have to deposit their paid-up capital in foreign currency.

The seven proposed commercial banks earlier applied to the central bank for licences to start their business after complying with the requirements as per the LoI.

The proposed banks, which have submitted documents to the BB, are: Union Bank Limited, Farmers Bank Limited, Meghna Bank Limited, Midland Bank Limited, South Bangla Agriculture and Commerce Bank Limited, NRB Commercial Bank Limited and NRB Bank Limited.

However, two proposed banks — Modhumoti Bank Limited and NRB Global Bank Limited — had sought time extension for complying with the requirements of the LoI.

Earlier on April 8, the central bank approved six private commercial banks (PCBs) to strengthen the financial inclusion process through bringing un-banked people under banking network.

The BB earlier also approved three new commercial banks, sponsored by NRBs, to help boost the country’s foreign exchange inflow.