Depositors May Be Allowed to Withdraw Up to Two Lakh Taka

In a few days, five Shariah-based Islamic banks in the country will be merged and renamed as the ‘United Islamic Bank’. Subsequently, all branch signboards nationwide will be changed. Before the signboard change, Bangladesh Bank will announce when depositors can withdraw their funds from these banks.

According to Bangladesh Bank sources, a programme or scheme for depositors will be introduced alongside the formation of the new bank. In the first phase, under the deposit insurance fund, each depositor will be allowed to withdraw up to two lakh taka. This withdrawal will be allowed from one account per national identity card. The central bank has stated that preparations are underway to begin the fund withdrawal process next week.

Last Sunday, at a board meeting chaired by Governor Ahsan H. Mansur, Bangladesh Bank granted final approval for the ‘United Islamic Bank PLC’. The bank will take over First Security Islamic Bank, Global Islamic Bank, Social Islamic Bank, Exim Bank and Union Bank. Exim Bank’s chairman was Nazrul Islam Majumdar, while the others were controlled by the Chittagong-based S Alam Group.

These troubled banks faced severe financial crises due to unchecked corruption. Customers could not withdraw their funds, and employees could not receive full salaries. The new bank’s head office has been opened at Sena Kalyan Bhaban in Motijheel. The paid-up capital is set at 35,000 crore taka, with 20,000 crore from the government and 15,000 crore from depositors’ shares. The authorised capital is fixed at 40,000 crore.

Bangladesh Bank officials said that with the government fund received and the new bank approved, there are no further obstacles to integration. Appointments for directors, managing director and company secretary are underway. On Thursday, a press conference by the governor will provide details on fund withdrawals for depositors.

Although multiple accounts exist per identity card in the five banks, initially, the withdrawal limit of two lakh taka will apply to one account per card. Only individual depositors will benefit, with higher withdrawal limits phased in later.

Mohammad Ayub Mia, chairman of the United Islamic Bank PLC and former secretary, met with the governor and inspected the head office. He stated that the government-owned Islamic bank is good news for the nation, and the main goal is to restore depositors’ confidence. The bank will become a symbol of national trust.

Khaborwala/ASN