Banks asked not to purchase vehicles for next one year

All banks have been asked to stop purchasing vehicles for a year – until June next year, according to a Bangladesh Bank (BB) circular issued on Wednesday.

They also have to cut 50 per cent of their budget allocated for food, furniture, electrical equipment and trip.

Earlier, on Tuesday BB ordered all banks to cut power and fuel costs by 25 and 20 per cent respectively in a bid to tackle the crisis induced by the Russian invasion in Ukraine.

The government is reducing the costs in different sectors in this fiscal. As a part of that, decision has been taken to cut the cost of some sectors in banks.

The purchase of all types of vehicles, including new and replacement, will remain closed until June next year.

BB said the banks will not be allowed to spend the money – they would save by reducing the expenditures – in other sectors.

Banks will have to keep the records concerning the reduced costs at the head offices of the respective banks.