An Ordinance to provide for the establishment of a Krishi Unnayan Bank for Rajshahi Division. WHEREAS it is expedient to establish a Krishi Unnayan Bank for the Rajshahi Division and to provide for matters connected therewith or incidental thereto; NOW, THEREFORE, in pursuance of the Proclamation of the 24th March, 1982, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance:-
(1) This Ordinance may be called the Rajshahi Krishi Unnayan Bank Ordinance, 1986.
(2) It shall come into force on such date as the Government may, by notification in the official Gazette, appoint.
(3) It extends to the whole area within the Administrative Division of Rajshahi.
In this Ordinance, unless there is anything repugnant in the subject or context,-
person, company or co-operative society incorporated or registered as aforesaid, who satisfies the Bank that the loan to be taken shall be spent on agriculture or the development of agriculture or agricultural products or on the storage, warehousing or marketing or processing of agricultural products;
(1) On the commencement of this Ordinance, there shall be established a Bank to be called the Rajshahi Krishi Unnayan Bank to carry out the purposes of this Ordinance.
(2) The Bank shall be a body corporate, having perpetual succession and a common seal with power to acquire, hold and dispose of property, both movable and immovable, and shall, by the said name, sue and be sued.
(3) The Bank shall be deemed to be a banking company for the purposes of the Banking Companies Ordinance, 1962 (LVII of 1962), and the Bangladesh Bank Order, 1972(P.O. No. 127 of 1972), and any other law for the time being in force relating to banking companies.
(4) Notwithstanding anything contained in any of the laws mentioned in sub-section (3), the Bank may refer to the Bangladesh Bank for reconsideration of any directives issued under any of the said laws by the Bangladesh Bank and, in the event of a difference of opinion between the Bank and the Bangladesh Bank, the matter shall be referred to the Government whose decision thereon shall be final.
The authorised capital of the Bank shall be one hundred and fifty crore taka to be subscribed by the Government from time to time according to the requirements of the Bank and in such form and manner as may be prescribed:
Provided that the Government may increase the authorised capital of the Bank from time to time.
(1) The Head office of the Bank shall be at Rajshahi and may be shifted to such other place within the Rajshahi Division as the Government may direct.
(2) The Bank may open such other offices and branches at such places as it may consider necessary.
(1) Subject to the rules made under this Ordinance, the general direction and administration of the affairs and business of the Bank shall be entrusted to a Board of Directors to be constituted in accordance with the provisions of section 7 and such Board may exercise all such powers and do all such acts and things as may be exercised or done by the Bank.
(2) The Board, in discharging its functions, shall act on commercial considerations but due regard to be paid to the interest of agriculture and development of agriculture and cottage and other allied industries in the rural as well as urban areas and to the public interest generally, and shall be guided on questions of policy by the instructions, if any, given to it by the Government which shall be the sole judge as to whether a question is a question of policy or not.
(3) Until the first Board is constituted under section 7 the Managing Director appointed under the said section shall exercise all powers and do all acts and things as may be exercised or done by the Board.
(1) The Board shall consist of the following Directors to be appointed by the Government, namely:-
(2) The Chairman shall be appointed from amongst persons who are not in the service of the Republic.
(3) The Chairman, Managing Director and other Directors shall hold office for such period and on such terms and conditions as the Government may determine.
(4) The Government may, at any time, terminate the appointment of the Chairman, Managing Director or any other Director without assigning any reason.
(5) The Chairman, Managing Director or any other Director may, at any time, resign his office by notice in writing addressed to the Government:
Provided that no resignation shall take effect until it has been accepted by the Government.
(1) The Managing Director shall be the chief executive officer of the Bank.
(2) The Chairman, Managing Director and other Directors shall exercise such powers, perform such functions and discharge such duties as may be prescribed or assigned to them by the Board.
(1) There shall be an executive committee consisting of-
(2) Subject to the rules made in this behalf, the Executive Committee shall deal with any matter within the competence of the Board.
(3) The minutes of any meeting of the Executive Committee shall be laid before the Board at its meeting next following the meeting of the Committee.
(1) No business of the Board or of the Executive Committee shall be transacted except at a meeting at which a quorum of three Directors in the case of the Board and two members in the case of Executive Committee is present.
(2) The meetings of the Board and of the Executive Committee shall be held at such time and at such places as may be prescribed by regulations.
(3) All meetings of the Board or of the Executive Committee shall be presided over by the Chairman and in his absence by a Director or member chosen for that purpose by the Directors or members present from amongst their number.
(4) At a meeting of the Board or of the Executive Committee, each Director or member of the Committee, as the case may be, shall have one vote and in the event of equality of votes, the Chairman shall have a second or casting vote.
(5) No act or proceeding of the Board or of the Executive Committee shall be invalid merely on the ground of the existence of any vacancy in, or any defect on the constitution of, the Board or the Executive Committee.
(1) The Directors, other than the Managing Director, shall be paid such fees for attending the meetings of the Board, the Executive Committee or the Technical Advisory Committee as may be fixed by the Government from time to time.
(2) The Directors shall be reimbursed such travel costs and other expenditure for attending the meetings of the Board, the Executive Committee or the Technical Advisory Committee as may be prescribed by rules.
(3) All fees, travel costs and other expense under this section shall be payable by the Bank.
The Bank may appoint a committee of experts to be called the Technical Advisory Committee to give its technical advice on schemes submitted to the Bank for financial assistance or on any point that may be referred to the Committee by the Board.
(1) The Bank shall provide credit in cash or in kind and credit facilities including the hiring and renting of anything which it may advance by way of loan and the provision for warehousing facilities, for such terms and subject to such conditions as may be prescribed by rules , to agriculturists for the purpose of agriculture and to persons engaged in cottage, agro-based or other allied industries in rural as well as urban areas for the purpose of such industries as may carry on and transact the several kinds of business hereinafter specified, that is to say,-
Provided that where a loan not exceeding five thousand taka in the aggregate is made to an individual agriculturist, it
may be secured by a bond with one or more sureties as the Bank may deem necessary if such agriculturist makes an agreement with the Bank creating a charge on any of his specified property to secure the performance of the stipulations of the bond;
(2) Notwithstanding anything in sub-section (1), any loan guaranteed by the Government may be made without any specific security.
(3) Notwithstanding anything contained in any law for the time being in force, it shall be lawful for any agriculturist or persons engaged in cottage industry, agro-based or in any other allied industries in the rural as well as urban areas to pledge, mortgage, hypothecate or assign any kind or quantity of movable or immovable property to the Bank, or otherwise to create a charge on any such property in order to secure the repayment of the loan and the Bank shall, in accordance with the provisions of this Ordinance, be competent to deal with and recover its dues from any property so pledged, mortgaged, hypothecated or assigned:
Provided that no property so pledged, mortgaged, hypothecated, assigned or otherwise charged shall be sold or otherwise disposed of except by public auction and then only so much of it as is sufficient to recover the dues of the Bank and the Bank shall not bid at such auction except in cases where the bid is not sufficient to pay up the Bank's dues or there are no bidders.
(4) Notwithstanding anything contained in any law for the time being in force, any charge created on any property to secure the repayment of the loan of the Bank or to secure performance of the stipulations of any bond executed in favour of the Bank shall be enforced against such property in the hands of any person to whom it may have been transferred including the person who has acquired the property for consideration and without notice of the charge.
(5) The Bank may make use of any agency prescribed by rules for watching the expenditure from its loans and making recoveries.
(6) Subject to such directions, if any, as may be given by the Government, the Bank may carry on and transact outside Bangladesh all or any of the business specified in sub-section (1).
(7) Notwithstanding anything in sub-section (1) or elsewhere in this Ordinance, loans for purposes other than agricultural may be advanced to any deposit holder with the Bank against his own deposit as and when required.
The Bank may undertake, if necessary, in collaboration and consultation with official or non- official agencies,-
In transacting the business of the Bank, the Board shall, as far as possible, give due attention to credit needs of small agriculturists, including marginal and landless farmers.
The Bank shall not make any unsecured advance or loan to any Director or to any concern in which a Director is interested.
The Bank shall require and, as far as possible, ensure that a loan is spent on the purpose for which it is made, and if this requirement is not complied with by the borrower, the Bank may require the repayment of the loan forthwith.
Notwithstanding any agreement to the contrary, the Bank may, by notice, require any borrower forthwith to pay his debt to the Bank in full, if-
(1) Where any agriculturist who is liable to the Bank under any agreement makes default in repayment or otherwise fails to comply with the terms of his agreement with the Bank, such default or failure, not being due to natural calamity, the Bank may, subject to any rules made in this behalf, take over the management of the concern of the agriculturist and sell or realise any property pledged, mortgaged, hypothecated or assigned by the agriculturist to secure his liability to the Bank.
(2) All sums due to the Bank shall be recoverable as arrears of land revenue .
(3) In the application of the Public Demands Recovery Act, 1913(Ben. Act III of 1913), for the purpose of the recovery of the dues of the Bank, the provisions of sections 7, 9, 10 and 13 of that Act shall not apply and the certificates issued under section 6 of the said Act shall be conclusive proof that the amount specified therein is due to the Bank.
(4) Sums due from a co-operative society and recoverable under sub-section (1) may be recovered in accordance with the provisions of law for the time being in force relating to the recovery of such sums due from a co-operative society to the Government.
(5) An Officer of the rank of Manager or above of the Bank may exercise all the powers exercisable by a certificate officer under the Public Demands Recovery Act, 1913(Ben. Act III of 1913),within his jurisdiction for the purpose of recovery of the dues of the Bank only.
The Bank shall establish a fund to be called the General Reserve Fund and create from time to time such other reserves as the Government may direct.
After making adequate provision for bad and doubtful debts, depreciation of assets or any other matters which are usually provided for the bankers, the net annual profit of the Bank shall be disposed of in accordance with the decision of the Government in this respect.
(1) The Bank shall maintain proper accounts and prepare annual statement of accounts, including the profit and loss account and balance sheet, and shall comply in respect of such accounts with such general directions as may be issued by the Government from time to time.
(2) The accounts of the Bank shall be audited by not less than two auditors, being chartered accountants within the meaning of the Bangladesh Chartered Accountants Order, 1973(P.O. No. 2 of 1973), who shall be appointed by the Government.
(3) Every auditor appointed under sub-section (2) shall be given a copy of the annual balance sheet and other accounts of the Bank and shall examine it, together with the accounts and vouchers relating thereto, and shall have a list delivered to him of all books kept by the Bank, and shall at all reasonable times have access to the books, accounts and other documents of the Bank, and may, in relation to such accounts, examine any Director or officer of the Bank.
(4) The auditors shall report to the Government upon the annual balance sheet and accounts, and in their report they shall state whether, in their opinion, the balance sheet contains all necessary particulars and is properly drawn up so as to exhibit a true and correct view of the state of affairs of the Bank, and in case they have called for any explanation or information from the Bank, whether it has been given and whether it is satisfactory.
(5) The Government may, at any time, issue directions to the auditors requiring them to report to it upon the adequacy of measures taken by the Bank for the protection of the interest of the Government and of the creditors of the Bank or upon the sufficiency of the procedure in auditing the affairs of the Bank, and may, at any time, enlarge or extend the scope of the audit or direct that different procedure in audit shall be adopted or that any other examination shall be made by the auditors or any other person or persons, if, in its opinion, the interest of the Government so requires .
(1) The Bank shall furnish to the Government such returns, reports and statements as the Government may, from time to time, require.
(2) The Bank shall, as soon as possible, after the end of every financial year but not later than four months, furnish to the Government a statement of accounts audited by the auditor under section 22 together with an annual report on the working of the Bank during the year.
(3) The copies of the audited accounts and annual report received by the Government under sub-section (2) shall be published in the official Gazette.
(1) The Government shall appoint one or more General Manager of the Bank on such terms and conditions as it may determine.
(2) The Bank may, subject to the directives of the Government issued from time to time in this regard, appoint or employ such other persons including advisers as it considers necessary for the efficient performance of its operation on such terms and conditions as may be prescribed by regulations.
(1) Every Director shall be indemnified by the Bank against all losses and expenses incurred by him in the discharge of his duties except such as are caused by his own wilful act or default.
(2) A Director shall not be personally responsible for the acts of any other Director or of any employee of the Bank for any loss or expense resulting to the Bank by reason of the inefficiency or deficiency in value of or title to any property or security acquired or taken on behalf of the Bank or by the wrongful act of any person under a liability acquired or taken on behalf of the Bank or by anything done by him in good faith in the execution of the duties of his office.
(1) Every Director, member of the Technical Advisory Committee, auditor or employee of the Bank shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule to this Ordinance.
(2) Whoever contravenes his declaration of fidelity and secrecy shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand taka, or with both.
Whoever, in any application for obtaining a loan, advance or credit or in any balance sheet, statement of profit and loss, declaration or any other document submitted to the Bank in respect of any financial aid sought or granted under this Ordinance, wilfully makes a false statement or knowingly permits any false statement to be made or to remain or uses or permits to be used any loan, advance, or credit for any purpose other than that for which it is granted by the Bank shall be
punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand taka, or with both.
(1) No information given by a person applying to the Bank for financial assistance, or based on data furnished by such person, shall be disclosed or used for a purpose not connected with the discharge of his duties by any Director, or member of the Technical Advisory Committee or of any committee or by any employee of the Bank.
(2) Whoever contravenes any of the provisions of sub-section (1) shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand taka, or with both.
Whoever, without the consent in writing of the Bank, uses its name in any prospectus or advertisement shall be punishable with the imprisonment for a term which may extend to six months, or with fine which may extend to one thousand taka, or with both.
No Court shall take cognizance of any offence punishable under this Ordinance otherwise than on a complaint in writing signed by an officer of the Bank authorised in this behalf.
No provision of law relating to the winding up of banking companies shall apply to the Bank and the Bank shall not be wound up save by order in writing of the Government and in such manner as the Government may direct.
Every officer or other employees of the Bank while performing duties under this Ordinance shall be deemed to be a public servant within the meaning of section 21 of the Penal Code (Act XLV of 1960).
(1) The Government may, by notification in the official Gazette, make rules for carrying out the purpose of this Ordinance.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for-
(1) The Board may, with the previous approval of the Government, make regulations, not inconsistent with the provisions of this Ordinance and the rules, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Ordinance and the efficient conduct of the affairs of the Bank.
(2) Without prejudice to the generality of the provision of sub-section (1), the regulations may provide for -
(3) All regulations made under this section shall be published in the official Gazette and shall come into force upon such publication.
In the Bangladesh Krishi Bank Order, 1973 ( P.O. No. 27 of 1973), in Article 1, in clause (2), for the word “Bangladesh” the words “Bangladesh except the Rajshahi Division” shall be substituted.
(1) On the commencement of this Ordinance, the entire undertaking of the Bangladesh Krishi Bank, established under the Bangladesh Krishi Bank Order, 1973(P.O. No. 27 of 1973), hereinafter referred to as the said Bank, in relation to the area within the administrative Division of Rajshahi shall, unless otherwise directed by the Government, stand transferred to, and vest in, the Bank.
(2) The undertaking of the Bangladesh Krishi Bank in relation to the area within the Administrative Division of Rajshahi shall, unless otherwise directed by the Government, be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and immovable, cash balances, reserve funds, investment and all other rights and interests in, or arising out of, such property as were immediately before the commencement of this Ordinance in the ownership, possession, power or control of the said Bank in relation to the undertaking within the area of the Administrative Division of Rajshahi and all books of accounts, registers, records and all other documents of whatever nature relating
thereto and shall, unless the Government otherwise directs, also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the said Bank in relation to such undertaking in the area within the Administrative Division of Rajshahi.
(3) Unless otherwise expressly provided by this Ordinance and unless the Government otherwise directs, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representative and other instruments of whatever nature subsisting or having effect immediately before the commencement of this Ordinance and to which the said Bank is a party or which are in favour of the said Bank, so far as they relate to the undertaking of the said Bank which has vested in the Bank under sub-section (1) shall be of as full force and effect against or in favour of the Bank, and may be enforced or acted upon as fully and effectively as if in the place of the said Bank, the Bank had been a party thereto or as if they had been issued in favour of the Bank.
(4) Subject to other provisions of this Ordinance and unless the Government otherwise directs, any suit, appeal or other proceedings of whatever nature pending on the date of commencement of this Ordinance by or against the said Bank in relation to the undertaking which has been vested in the Bank under sub-section (1) shall be deemed to be suit, appeal or other proceedings by or against the Bank and may be continued or proceeded with and enforced by or against the Bank.
(1) Every officer or other employee of the said Bank who is serving under the said Bank anywhere within the area of administrative Division of Rajshahi shall become, on the commencement of this Ordinance, an officer or other employees, as the case may be, of the Bank and shall hold office in the Bank on the same terms and conditions and with the same rights and privileges as to the provident fund, gratuity, pension and other matters as were enjoyed by him immediately before such commencement and shall continue to do so unless and until his employment in the Bank is terminated or until his remuneration or terms and conditions of service are duly altered by the Bank:
Provided that an officer or other employee may, within such time as may be specified by the Government, exercise his option not to continue in the service of the Bank and may opt to serve in the said Bank:
Provided further that any other officer or employee of the said Bank may, within such time as may be specified by the Government, exercise his option to serve as an officer or employee of the Bank.
(2) Option exercised by an officer or other employee under sub-section (1) shall be given effect to both by the said Bank and the Bank subject to availability of posts.
(3) No officer or other employee of the said Bank whose service is, by this Ordinance, transferred to the Bank shall, notwithstanding anything contained in any law for the time being in force, be entitled to any compensation because of such transfer.
All rules and regulations made under the Bangladesh Krishi Bank Order, 1973(P.O. No. 27 of 1973), and in force immediately before the commencement of this Ordinance, shall, in so far as they are not inconsistent with the provisions of this Ordinance, continue in force and be deemed to have been made under the provisions of this Ordinance until they are repealed or amended under the said provisions.
If any difficulty arises in giving effect to the provisions of this Ordinance, the Government may, by order, do anything which appears to it to be necessary for the purpose of removing the difficulty:
Provided that no such order shall be made after the expiration of two years from the coming into force of this Ordinance.