BB issues new guidelines for establishment of bank business centres

Bangladesh Bank (BB) has issued a comprehensive set of guidelines governing the establishment, relocation and operation of bank business centres, aiming to ensure balanced banking expansion, strengthen financial inclusion and improve cost discipline across the banking sector.

The central bank issued the new directives on Sunday under Section 45 of the Bank Company Act, 1991 (amended through 2023).

The circular supersedes BRPD Circular No. 02/2023 and is mandatory for all scheduled banks.
The guidelines classify bank business centres into three categories: Type-A (Administrative and Support Centres), Type-B (Transactional Branches) and Type-C (Specialised and Limited Service Centres).

Bangladesh Bank will retain the authority to classify any business centre not explicitly covered under the categories.

Under the new framework, banks must obtain prior approval from Bangladesh Bank before establishing or relocating business centres, except for electronic booths (ATM/CDM/CRM), airport lounges and temporary booths operating for less than one month.

The approval process has been divided into two stages. Banks will first need policy approval by submitting an Annual Bank Business Expansion Plan by November 30 of the preceding year. 

Subsequently, they must obtain case-by-case final approval before commencing operations. Bangladesh Bank said approval for new urban branches will be granted only after banks fulfill their corresponding rural branch obligations.

To promote financial inclusion, the central bank has made it mandatory that at least 50 percent of all new branches established in a calendar year be located in rural areas. Urban areas have been defined as city corporations and ‘A’ category municipalities, while all other areas are considered rural.