The cabinet has approved a draft of The Bangladesh Bank (Amendment) Act, 2020 discarding the age limit provision for its governor.
The approval came at the regular cabinet meeting held at the cabinet room of the Jatiya Sangsad Bhaban with Prime Minister Sheikh Hasina in the chair, said cabinet secretary Khandaker Anwarul Islam at a press briefing after the meeting at Bangladesh Secretariat.
According to the provision of clause 5 of Article 10 of the Bangladesh Bank Order, 1972 (President's Order No 127 of 1972), the tenure of the central bank governor is four years and he or she may be reappointed.
"However, the proviso of that clause mentions that no person may hold the post of the governor after s/he is 65," Islam said.
The cabinet secretary said an experienced person is appointed as a governor. "However, it is not possible to appoint an efficient and experienced person in the financial sector after s/he is 65 as the current law has set the upper age limit at 65 years," he added.
Islam said even it was not therefore possible to reappoint an experienced person who performed the responsibility of the governor at the Bangladesh Bank.
In this connection, he referred to the fact that neighbouring countries India and Sri Lanka do not mention an upper age limit for their central bank governors.
"In these circumstances, an initiative has been taken in the public interest to scrap the proviso of clause 5 of Article 10 of the Bangladesh Bank Order, 1972 (President's Order No 127 of 1972) related to the upper age limit of the central bank governor," the cabinet secretary said.
Fazle Kabir's tenure is supposed to end on July 3 this year as he will be 65 then. There is a discussion about his reappointment among the high level of the government.
On March 16, 2016, Fazle Kabir was appointed as the 11th governor of the Bangladesh Bank for four years. His tenure was supposed to expire on March 20 this year, but later it was extended until he turned 65.