IDRA Circular

Circular nonlife 62/2019: (1-10), Date: 3 June, 2019

1. Bank A/C for premium deposit
 Need separate 3 Banks
 Each separate banks should have one Bank A/C
 Maximum bank a/c should not exceed 3 Bank A/C
 Other bank account (except 3 separate Bank A/C) should be shut down within
31.7.2019.
2. Bank A/C for capital reserve + other income deposit
 For capital reserve – there should be one Bank A/C
 For other income deposit – there should be one Bank A/C
3. Bank A/C for expense
 For expense claim – One Bank A/C
 For management expense – One Bank A/C
4. No cash payment for claims, commission, salary and other allowances
5. Branch Office Banking rules
 For Branch office expenses – Each branch should have one Bank A/C
 Fund transfer from Central premium deposit bank A/C to Branch A/C – Crossed
cheque or Fund transfer
6. In case of income, commission return related to Branch, amount should be deposit to
the Bank notified at 2(B).
7. Withdrawal + Expenses
 Transaction should be made by crossed cheque
 Maximum withdrawal for special administrative special needs = 10,000 BDT
 Cash payment allowable for expenses – related to Company Directors’ meeting
honorarium + other related expenses
8. Based on the above directions, classification of Bank A/C should be notified to the
authority within 12.8.2019.
9. Approvals
 FDR related to investment – No need for approval of the authority
 IPO, right issue, dividend payment
 Need director’s approval
 Bank A/C + its details should be submitted to the authority
 Other company matters – Pre approval needed from the authority
10. Insurance stump due on policy amount >20,000 BDT, payment made through pay
order/cross cheque with separate Challan.
11. Circular Nonlife 66/2019, Date: 24 July, 2019, 64/2019, Date: 2 July, 2019: Commission
to insurance agent = 15%
12. Circular Nonlife 75/2019: Agent commission = 14.25% (after deducting advance tax 5%)
should be given to agent under IDRA license.