Scheduled banks other than the new nine banks and non-bank financial institutions will have to spend at least 2.5 per cent of their net profits for corporate social responsibility purposes in a fiscal year, said officials of Bangladesh Bank.
The new nine banks will have to spend 10 per cent of their net profits for CSR programmes in a fiscal year as per the conditions they were given at the time of receiving licences from the central bank for their operation.
The BB will not consider allocation for media advertisements and promotional activities as CSR activities, a BB official told New Age on Wednesday.
He said the central bank had already framed draft CSR guidelines for banks and NBFIs.
The CSR allocation will not be mandatory for a bank or NBFI if it posts a negative net profit in a fiscal year.
Banks and NBFIs will not allocate any CSR fund for the organisations related to their directors.
Banks and NBFIs will not be allowed to receive any gift against their CSR disbursement.
The BB official said that the central bank was farming the policy as it had received a number allegation against banks and NBFIs that they misused their CSR fund.
He said that the BB would be able to bring discipline in the CSR allocation by banks and NBFIs when they will follow the guidelines.
Banks and NBFIs will have to disburse CSR fund in three key fields – concessional loans, donation fund, and allocation for developing internal (banks and NBFIs) job environment and gender equality.
Banks and NBFIs will impose lower rate of interest than their weighted average cost of fund for the concessional loans.
The marginal and the landless farmers of the remote areas will be able to receive the concessional loans.
Banks and NBFIs will set up internal baby-cares for their female officials by using CSR fund.
They will give donation to the issues of their
officials if they (issues) obtain scholarship from any reputed educational institution.
A bank or NBFI will have to frame its own CSR policy and its board of directors will have to approve it.
Its board will have to review the policy periodically.
The board will have to make CSR committee led by a director of the bank or the NBFI.
The bank or NBFI will have to make another committee with its senior officials — managing directors and general managers.
Banks and NBFIs will have to publish an annual CSR publication, illustrating their CSR activities