Describe the Status of Bangladesh Bank Order 1972, as Law

Bangladesh Bank Order 1972 is popularly known as Presidential Order No 127 of 1972. This order was enacted on 7 April 1972. Through this order, Bangladesh Bank was established as the country’s central bank and apex regulatory body for the country’s monetary and financial system. The Dhaka branch of the State Bank of Pakistan was converted to the Head Office of Bangladesh Bank. As per the order, Bangladesh Bank was established on the very first victory day, i.e., 16 December 1971.

Status of Bangladesh Bank Order 1972, as Law:

Fundamental Law: Bangladesh Bank Order 1972 is the fundamental law governing the constitution and functions of Bangladesh Bank as the central bank of Bangladesh.

Creates a Regulatory Body: The Order provides authority to Bangladesh Bank to supervise and monitor the Banks, Non-banking Financial Institutions, and regulate the financial sector of Bangladesh.

Constitutional Recognition: All existing laws, including Presidential Orders, are valid and in force under the Constitution of Bangladesh. Therefore, Bangladesh Bank Order 1972 enjoys full constitutional recognition.

Relationship With Other Financial Laws: Bangladesh Bank Order 1972 is related to other Financial Laws, like: Bank Company Act 1991, Negotiable Instrument Act 1881, Foreign Exchange Regulation Act 1947.

Evolution Through Amendments: Bangladesh Bank Order 1972 is the foundation. But it has been amended over time to time. The provisions are updated from time to time to meet the situation demand and modernization. 98th BPE, 8(a)