On Wednesday night, Bangladesh Bank (BB) instructed all government and private banks to halt cash withdrawals exceeding Tk1 lakh for today, August 8.
Details of the Directive
This urgent directive, communicated by the central bank’s managing directors, permits customers to continue digital transactions and transfers of any amount despite the withdrawal cap.
Reasons for the Directive
The decision comes in response to an influx of unnamed cheques and a security vacuum at banks and ATMs following the resignation and escape of former Prime Minister Sheikh Hasina. Reports indicate heightened withdrawal pressure as many Awami League members are withdrawing large sums of money out of insecurity.
Preventing Misuse
The central bank’s move aims to curb the potential misuse of withdrawn cash, particularly to prevent financing terrorism or violence.
Additional Measures
BB has also decided to suspend the distribution of money to bank branches from its headquarters and has encouraged customers to settle payments using cheques.
Official Statement
A BB official stated, “There is no government in the country right now, and a new government is set to take oath today. We’ve issued the directive to prevent the misuse of money withdrawn from banks.”
Impact on Banking Operations
In just the past two days, Islami Bank has refused unnamed cheques worth Tk848 crore from various branches across the country.
The central bank’s measures reflect efforts to stabilize the financial system amid the ongoing political turbulence.
