No banking facility for textile companies except registration: BB
Published: 05:51 PM, 4 September 2020 Updated: 06:15 PM, 4 September 2020
Bangladesh Bank has instructed not to provide banking facilities to textile companies including buying houses without registration from the textile department.
The central bank on Thursday issued a circular in this regard and sent it to the chief executives of the banks.
According to the circular, according to sections 2 (6) and 12 (2) of the Textile Act, the textile industry cannot be conducted without the registration of the Department of Textiles. However, some buying houses and other textile companies are doing business illegally without registration. Complaints are being raised from various sources that these institutions are tarnishing the image of the country in the international market. However, as it is not registered with the Department of Textiles, the appropriate authorities are not able to take legal action against such organizations.
Since all other textile industries including the buying house must be registered with the department, in order to provide banking facilities in favor of these companies, it is necessary to ensure the registration of the organization under the law.