Bangladesh Bank has outlined an indicative guideline on allocation of Corporate Social Responsibility fund, giving priority over education segment.
Preventive and curative health care support for underprivileged population comes next in priority.
The guideline was issued in the back drop of increased level of financial involvement in CSR activities that have raised concern about ensuring allocation of the fund and its proper use and monitoring, a Bangladesh Bank circular said yesterday.
Around 30% of total CSR expenditure should be used for awarding scholarship or stipend for students from low-income family in reputed academic and vocational training institutions and also for support to upgrade facilities in academic and vocational training institutions, according to the guideline.
Some 20% of CSR fund should go to health care for underprivileged population, said the guideline.
Health care support to the underprivileged sector comes in the form of direct grant from financial institutions. The fund should be used for running hospitals and diagnostic centres substantially engaged in the treatment of patients from grass roots levels.
The remainder of CSR fund should be allocated for areas like emergency disaster relief, promotion of environmentally sustainable output practices and lifestyles and enhancement of artistic, cultural, literary, sports and recreational facilities for underprivileged segments.
CSR units in banks and financial institutions will draw up CSR programmes and implement those annually.
The central bank’s CSR and Supervision Departments will oversee activities of the CSR units in line with the banks and financial institutions’ internal audit.
Every bank and financial institution shall be responsible for monitoring of their CSR funds as to whether or not they are spent onintended purposes.
The institutions will exercise utmost care to ensure that their CSR allocations do not end up financing militancy and terrorism.
Any suspected event of such abuse of CSR assistance must be reported to law enforcement authorities, according to the guideline.
