Bangladesh Bank (BB) has instructed all scheduled banks to formulate or update a comprehensive Human Resource Management Policy by March 31, 2027, to ensure good governance, stability, and transparency across the banking sector.

The central bank issued the directives through BRPD (Banking Regulation and Policy Department) on Monday (September 7), aiming to protect depositors' interests and establish a merit-based HR structure.

To strengthen corporate governance, banks must incorporate 18 key components into their board-approved policies. These include recruitment, probation, and succession planning for C-suite executives, code of conduct, whistle-blower policies, harassment prevention, and grievance resolution systems.

The circular also laid down several mandatory guidelines regarding recruitment and academic certificate verification, effective immediately:

Direct Entry Recruitment: Positions requiring no prior experience—such as Management Trainee Officers, Probationary Officers, Trainee Assistant Officers, and Cash Officers—must be advertised on bank websites, job portals, and at least two national daily newspapers to ensure equal opportunity.

Competitive Selection: Recruitment for entry-level posts must undergo a competitive process involving objective/written assessments and viva voce exams. Higher-level lateral hires must also undergo competitive evaluation, at minimum a viva voce (oral interview).

Certificate Verification: Banks must verify the latest academic certificates of newly hired employees within one year of joining. For existing staff hired before this circular, verification must be completed by March 31, 2027.

Lateral Hire Exemption: If a hired officer’s certificates were already verified by their previous bank, re-verification from the issuing institution is not required, provided the previous bank issues a release order certifying the verification.

Fraud Prevention: If any employee submits forged educational or professional certificates at recruitment or for promotion, banks must take administrative action and upload the record to the central bank's Corporate Memory Management System (CMMS).