High Court questions Bangladesh Bank circular fixing salary of entry-level private bankers

The High Court has questioned the legality of a Bangladesh Bank (BB) circular that fixed the minimum salary of entry-level officials and staff of private banks.

The court on Monday issued a rule upon the concerned bodies of the government to explain in one week as to why the BB circular that fixed the minimum salaries with an allowance of assistant officer, trainee assistant officer, trainee assistant cash officer, and equivalent officer at Tk 28000 and also fixed the minimum total salary of those officers upon completion of probation period at Tk 39000 should not be declared without lawful authority.

In the rule, the court also wanted to know as to why the term of the same circular that fixed the minimum starting salary of the messenger, cleaner, security guard, support staff, or equivalent other posts at Tk 24000 should not be declared without lawful authority.

Finance Secretary and Bangladesh Bank governor have been asked to comply with the rule within one week.

The High Court bench of Justice Mamnoon Rahman and Justice Khandaker Diliruzzaman passed the order after hearing a writ petition filed by Md Farhad Bin Hossain, a shareholder of the One Bank through BO account, challenging the BB circular issued on January 20 in 2022 fixing the minimum salary of the staffs.

The court also appointed four renowned lawyers as ‘amici curiae (friends of the court)’ to hear if the central bank has any authority to issue such circular.

The amici curiae are attorney general AM Amin Uddin, lawyers Ajmalul Hossain, Rokanuddin Mahmud, and Probir Neogi. 

Barrister Syed Mahsib Hossain appeared in the court on behalf of the writ petitioner while deputy attorney general Bepul Bagmar represented the state.

For the first time in history, Bangladesh Bank on January 20 this year fixed the minimum salary of entry-level officials of private banks in order to encourage talented young to take banking as a career and play role for the economic advancement of the nation.

The central bank said entry-level salary of assistant officer, trainee assistant officer, trainee assistant cash officer or equivalent officials would be a minimum Tk 28,000 during the probation period and their total salary including basic be at least Tk 39,000 monthly after the end of probation period.

Mr Mahsib said the circular is totally arbitrary and absurd in the present scenario of the financial sector of our country, especially during the pandemic situation.

“The financial situation of the maximum banks is very critical now. If the central bank fixes the minimum salary the banks will face more crisis,” added the lawyer.

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