Bangladesh Bank has fixed the maximum rent rates for bank branches and other business centers across different regions of the country. The directive, issued on Thursday, states that banks will no longer need prior approval from the central bank if the rent remains within the prescribed limits. However, approval will be required if the rent exceeds those limits. Banks can now decide on leasing or renting business premises with their board of directors’ approval, including new contracts or renewals.

According to the circular, if the property owner is a bank director or a related party, prior approval from Bangladesh Bank will still be necessary. Approval will also be required for relocating business centers before the contract expires, or for renting premises for head offices and controlled divisions. The circular instructs banks to follow previous guidelines on advance payments, establishment costs, and rent escalation.

The maximum rent per square foot has been set at 104 taka in Dhaka City Corporation areas, with varying rates for other cities and rural areas. Banks must determine rent rationally within these limits, considering location, floor level, and building quality.