The Bangladesh Bank issued a circular to this effect on Monday after it was informed that some banks are not deducting export proceeds as per the rule
The Bangladesh Bank has asked all scheduled banks to deduct 0.03% of export value against export proceeds of all export-oriented garment industries in accordance with the labour rule.
Banks will have to transfer the deducted money to the central fund created for the ready-made garment (RMG) sector, under the labour welfare programme of the government, according to a circular issued by the central bank on Monday.
Banks were also asked to submit the fund transfer report to the Bangladesh Bank and the Ministry of Labour and Employment, according to the circular.
The Bangladesh Bank issued the circular after it was informed by the labour ministry, through a letter, that some banks are not deducting export proceeds as per the rule, read the circular.
In 2016, the government created the Central Fund for the welfare of RMG industry workers.
The labour rules that came into effect in September 2015 stipulate that export-oriented factories must contribute 0.03% of their export proceeds to the fund while the contributions from the government and buyers are voluntary.
The money will be deposited equally in two accounts – one will be a beneficiary account and the other will be a contingency account.
Grants for workers or their family members will be taken from the beneficiary account, while the amount deposited in the contingency account will be used to meet the dues of workers of any closed factory if its owner is unable to pay its workers.
From the beneficiary account workers would get up to Tk30 lakh in case of death or permanent disability due to an accident in the workplace and up to Tk20 lakh in case of illness.