Photo: Collected

DHAKA, July 26, 2026 (BSS) — 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 today 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.

The circular also imposes proximity restrictions, prohibiting banks from opening a new branch or sub-branch within a one-kilometre radius of their own existing outlet.

In addition, a sub-branch cannot be established within a three-kilometre radius of another sub-branch of the same bank, unless Bangladesh Bank grants an exemption for financial inclusion or special geographic considerations.

For sub-branches, the guidelines require that a maximum of 15 percent be located in city corporations, up to 25 percent in 'A' category municipalities and at least 60 percent in 'B' category municipalities and rural areas.

Sub-branches must operate with at least three employees and may not charge fees higher than those of regular branches. They are also prohibited from conducting foreign trade transactions. Furthermore, SME and agricultural branches must reinvest at least 50 percent of locally mobilised deposits as loans within the same locality to support regional economic development.

The guidelines also introduce stricter controls on infrastructure and operating costs. Banks have been instructed to adopt austerity measures by limiting office space to actual business requirements, using environmentally friendly and locally manufactured furniture, and avoiding excessive interior expenditures.

To prevent unnecessary cost escalation, the central bank has directed banks to execute formal lease agreements, avoid abnormal rent increases during renewals and limit advance rent payments. Banks will also be required to submit an annual statement on rent and lease rates to Bangladesh Bank.

The circular further prohibits financial transactions at administrative centres and specified support and sales offices. 

Any unauthorised business activities or establishment or relocation of business centres without approval will be treated as regulatory violations and will attract penalties under the guidelines and the Bank Company Act.

Bangladesh Bank said it reserves the authority to inspect business centres and amend the guidelines whenever necessary to safeguard financial stability and ensure orderly expansion of the country's banking network.