No provident fund for contractual bankers: BB

Bangladesh Bank today asked banks in the country not to create any provident funds for employees appointed on a contractual basis.

The employees will not be allowed to enjoy any gratuity as well, according to a central bank notice.

In its notice, Bangladesh Bank says that some banks are giving these facilities to employees appointed on a contractual basis, breaching the norms of the human resource policy of the banking sector.

As per the policy, employees in the banking sector are permitted to do their job until the age of 59, after which they have to retire.

However, banks are allowed to appoint their retired employees to do contractual jobs until 65.

The central bank has found allegations that some banks are now providing the two facilities -- provident funds and gratuity -- to the retired employees working on a contractual basis.

As such, the banking watchdog asked the lenders to only provide gratuity and provident funds to the regularised employees that leave their post or retire at 59.