United News of Bangladesh

Bangladesh Bank Governor Md. Mostaqur Rahman on Saturday said the banking sector will need Tk 60,000 crore annually from the national budget for the next five to eight years to assist the sector recover from massive “financial looting and structural damages”. "When I took charge as Governor, one-third of the total funds in the banking system had already been stolen," the central bank governor revealed, describing the scale of capital flight and financial irregularities in the financial sector. Governor Mostaqur Rahman made the remarks while speaking as the chief guest at a campaign event promoting Bangla QR transactions, organised by ONE Bank PLC at United International University (UIU) in the capital. Highlighting the massive opportunity cost of this financial drain, the Governor said, "With this amount of money, the government could have supported 2.0 crore families or constructed two mega infrastructure projects like the Padma Bridge." Severely criticizsng those responsible for the widespread systemic drain on liquidity, he emphasised that standard terminology fails to capture the gravity of the offense. "The plundering group looted public money. Calling it simple theft would be an understatement; it was outright plundering," he said. The Governor assured that stringent legal actions are already underway against those involved in the widespread financial irregularities and money laundering to hold perpetrators accountable and recover plundered assets.

Bangladesh Bank (BB) has permitted passengers to purchase tickets for foreign airlines operating in the country directly using international credit and debit cards, providing an alternative to traditional banking channels and travel agencies. The central bank’s Foreign Exchange Policy Department (FEPD-1) issued a circular on Monday and dispatched it to all Authorized Dealer (AD) banks across the country. According to the circular, Bangladeshi citizens holding valid visas can use international cards to buy tickets for foreign airlines operating in Bangladesh. This facility will also apply to foreign airlines whose ticket sales are settled outside Bangladesh through international acquiring and payment settlement systems. As per Bangladesh Bank instructions, purchasing tickets via international cards under this provision will remain outside the consumer's fixed annual travel quota. However, issuing banks can verify the authenticity of ticket purchases to refill or adjust the spent limit on the customer's card. To identify such transactions, banks must follow the specific Merchant Category Code (MCC) assigned to the respective airlines. However, the central bank clarified that this facility will not apply to domestic Bangladeshi airlines if booked through foreign platforms operating outside Bangladesh. The circular further stated that foreign currency earned through ticket sales must be calculated and adjusted as remittable surplus under existing regulations when sending money to the airline's home country. Additionally, banks must regularly report these transaction details through Bangladesh Bank’s Transaction Monitoring (TM) module. The directive, signed by BB Director (FEPD-1) Dr. Md. Abu Bakkar Siddique, comes into effect immediately.

Bangladesh Bank is set to launch a specialised financial program titled "Uddyog: Upazila-Based Young Entrepreneur Search, Identification, and Financing Program" to transform young citizens into successful entrepreneurs across the country. The SME and Special Programs Department of the central bank will implement the initiative. Details of the scheme were unveiled by BB Spokesperson and Executive Director Arif Hossain Khan at a press conference at the central bank headquarters on Thursday. Unlike traditional competitive contests, "Uddyog" will identify promising young individuals directly at the upazila level through branches of scheduled banks. Participating banks will evaluate applicants' business plans, feasibility, and funding requirements to disburse the financial assistance. Under the program, selected young entrepreneurs will receive financial support of up to Tk 20 lakh. This package includes a maximum bank loan of Tk 10 lakh and a grant of up to Tk 10 lakh. The interest or profit rate for the loan portion at the customer level has been fixed at a maximum of 4 to 7 percent. Crucially, the entire financing package will be provided without requiring any collateral. However, if an entrepreneur fails to repay the loan portion within the stipulated timeframe, the grant portion will automatically be converted into an interest-free loan. The account will then be classified under standard central bank rules, rendering the borrower a defaulter and ineligible for future loans. To qualify for the programme, applicants must be adult Bangladeshi citizens and residents of the respective upazila, with an upper age limit of 28 years on the final date of application. Prior business experience is not mandatory, allowing individuals with realistic and viable business ideas to apply. Eligible sectors include agriculture, food processing, fisheries, livestock, handicrafts, tourism, services, technology, and other legitimate business ventures. No application fee will be charged. Interested candidates can submit their application forms to any scheduled bank branch within their respective upazila. In its initial pilot phase, the programme will roll out across 64 upazilas in eight selected districts spanning eight divisions: Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur, and Netrokona. Ten young entrepreneurs will be selected from each upazila, totaling 640 beneficiaries in the first phase, before the program expands nationwide. Beyond financial funding, "Uddyog" will offer entrepreneurship development training, mentorship from experienced professionals, business registration support, assistance in business plan formulation, and market linkage services. Bangladesh Bank estimates that each successful micro-entrepreneur creates employment for three to five people on average, making this initiative a key driver for job creation and local economic growth. A detailed circular outlining the implementation methodology and terms will be issued by Bangladesh Bank on September 16, following which applications will remain open for one month.

Sammilito Islami Bank PLC is set to begin refunding the principal deposits to its individual account holders starting on September 7. Customers will be allowed to withdraw or encash their entire deposited principal amount at once, though they will not receive any profit on the withdrawn funds. The bank's branches will start accepting applications for these withdrawals from Tuesday. The bank's head office has issued a special circular outlining necessary preparations and guidelines for all divisional heads, zonal heads, and branch managers. The directive was signed by bank's Deputy Managing Director and Chief Coordinator of Operations AF Sabbir Ahmed. While Bangladesh Bank had previously announced the resumption of normal transactions for individual customers starting on September 1, the bank requires a few additional days to finalise preparations. These include sending cash requisitions to branches and sub-branches, ensuring adequate cash supply from the central bank, and establishing a risk-free cash management system. Consequently, the fully-fledged refund process will commence on September 7. According to the directive, customers can withdraw their principal funds from Al-Wadia current accounts, Mudaraba savings accounts, and various term deposits, such as MTDR and DPS. However, depositors who choose to keep their accounts active without withdrawing will continue to receive profits at their pre-determined contractual rates. Once the bank's overall operations fully resume, customers will be able to deposit and withdraw any amount, including profits. To restore lost trust and reassure customers ahead of the payout process, bank authorities have instructed branches to observe September 1 as a special day for rebuilding customer confidence. Officials have been directed to decorate branches and sub-branches, wear formal and decent attire, and welcome customers with flowers or gifts. Priority services must be ensured for senior citizens, women, and persons with disabilities. Branches are required to maintain a clean, positive environment, maximise customer satisfaction, and record video footage of customer service activities. Sammilito Islami Bank was formed during the interim government by merging EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank. The merger took place after these institutions failed to return customer deposits for a prolonged period due to widespread financial irregularities and fraud. The five merged banks hold Tk 1,42,000 crore belonging to approximately 76 lakh depositors, with about Tk 15,000 crore held in individual savings accounts. A staggering 86 percent of the Tk 1,92,000 crore total loans across these banks are currently defaulted, resulting in a capital shortfall of over Tk 1.5 lakh crore. Operating as a state-owned bank since November last year, Sammilito Islami Bank has an authorised capital of Tk 40,000 crore and a paid-up capital of Tk 35,000 crore. The government provided Tk 20,000 crore of the paid-up capital, while shares will be issued to depositors against the remaining Tk 15,000 crore.

Bangladesh Bank has cleared the regulatory path for the introduction of international digital payment and money transfer services in Bangladesh allowing local banks to partner with global platforms such as PayPal and Payoneer to facilitate cross-border transactions. According to a circular issued by the Foreign Exchange Policy Department of Bangladesh Bank, authorised dealer (AD) banks can establish operational agreements with foreign digital payment service providers, international payment gateways, and aggregators following approval from the central bank. The central bank emphasised that these agreements will allow local banks to facilitate cross-border digital money transfers, remittances, service fees, e-commerce transactions, and freelancer payments through secure international channels. Central bank officials stated that the main objective of the new framework is to modernise cross-border transaction services, enhance transparency, and simplify international payment flows for freelancers, IT service exporters, and small entrepreneurs.

The remittance inflow to Bangladesh reached $2.095 billion in the first 21 days of July, marking a robust 23.5 percent year-on-year growth at the beginning of the current fiscal year 2026-27, according to the latest data from Bangladesh Bank. Bangladeshi Expatriates living in different countries remitted $1.696 billion during the corresponding period (July 1-21) of FY26. On July 21 alone, Bangladeshis sent home $78 million. BB allows unlimited royalty remittance for EZ units with BEZA nod The sustained momentum in inward remittances is expected to further strengthen the country's foreign exchange reserves, relieve pressure on the balance of payments, and support macroeconomic stability in the early months of the new fiscal year. Central bank officials attribute the strong growth to an increasing preference among non-resident Bangladeshis for legal and formal banking channels, supported by competitive exchange rates and policy measures aimed at facilitating seamless fund transfers.

Bangladesh Bank has made prior approval from the Chief Inspector of Boilers mandatory for the import of boilers and boiler components, in line with a directive from the Ministry of Industries. The central bank's Foreign Exchange Policy Department issued a notification on Tuesday, instructing authorised dealer (AD) branches of all banks engaged in foreign exchange transactions to comply with the new requirement. The notification said the fresh directive follows a memo issued by the Boiler Wing of the Ministry of Industries on June 28, 2026, and has been made effective for all boiler and boiler component imports accordingly. According to the notification, boiler manufacturers must complete construction within a maximum of 12 months from the date of drawing and design approval. Manufacturers must also hand over all documents and certificates required for registration to the buying entity after supply or sale of a boiler, and must inform the Chief Inspector of Boilers in writing of the buyer's name and address. The directive further requires that occupational health and safety of factory workers be ensured, with all relevant provisions of existing labour law to be followed. Under the new instructions, prior approval from the Chief Inspector of Boilers must be obtained through a prescribed application form before any import of boilers or boiler components. On receipt of an application, a designated officer will verify the necessary documents and submit a report to the Chief Inspector, who will grant or reject the import approval after reviewing the report. If approved, the Deputy Chief Inspector of Boilers will issue the approval letter. If an application is rejected, the applicant must be informed in writing of the reasons within seven working days, after which they may reapply upon rectifying the deficiencies and paying the requisite fee. The notification added that the concerned authority may also inspect a manufacturer's factory or production process, if required, to ensure the quality of boilers.

Bangladesh Bank on Tuesday unveiled its monetary policy for the July-December period, retaining the policy rate at 10 percent while seeking to curb inflation. Governor Mostaqur Rahman announced the monetary policy for the first half of the new fiscal year at a press conference held at the central bank. Bangladesh Bank (BB) will firmly stick to its flexible, market-determined exchange rate regime to protect the country's external sector from international shocks, expand exports, and optimize remittance inflows, official sources said. Unveiling the new Monetary Policy Statement (MPS) for the July–December period of the fiscal year FY2026-27, Mostaqur Rahman reiterated that the market-driven exchange mechanism remains a vital strategic pillar for the country's macroeconomic stability.  

Bangladesh Bank (BB) is likely to keep its key policy interest rate unchanged at 10 percent shelving an earlier plan to lower the rate amid growing global economic uncertainty triggered by the recent geopolitical tensions in the Middle East. The central bank is scheduled to announce the monetary policy on Tuesday afternoon at a press conference. The governor initially convened a meeting of the Monetary Policy Committee (MPC) with a proposal to reduce the policy rate in an effort to lower borrowing costs, encourage private sector investment and support employment generation, according to Bangladesh Bank sources. However, the central bank later dropped the plan after the sudden escalation of tensions in the Middle East raised fresh concerns over global economic stability and the risk of renewed inflationary pressures, the sources said. The decision comes despite private sector credit growth falling to a record low. In its monetary policy for FY2025-26, Bangladesh Bank projected private sector credit growth to reach 8.50 percent by June. However, official data showed that credit growth stood at only 4.75 percent at the end of April, the lowest level on record.

Bangladesh Bank (BB) has formally launched a Tk 10,000 crore special refinancing scheme to boost agricultural production and ensure food security, while revising key provisions from its initial proposal.  The new directive replaces the plan to use foreign currency reserves with domestic bank surplus liquidity and reduces the scheme's duration from five years to three. Through an Agriculture Credit Department (ACD) circular, issued today (Sunday) and sent to the Managing Directors/Chief Executives Officers of all banks, the central bank provided a comprehensive set of revised operating guidelines for the scheme. This follow-up circular replaces critical parameters previously outlined in the June 8, 2026. A fundamental shift in policy has occurred regarding the source of funding. According to today's circular, the Tk 10,000 crore scheme is no longer dependent on using foreign currency reserves. Instead, it will be constituted from the surplus liquidity of scheduled banks operating under the management of Bangladesh Bank. This change ensures the program operates strictly with domestic funds, preserving external reserves. The duration of the scheme has also been adjusted. The central bank specified that the new refinancing tenor is now fixed at three (3) years from the date of the new circular issuance, down from the original five-year proposal. All other instructions and provisions of the June 8, 2026, circular that were not specifically amended remain unchanged. Bangladesh Bank stated that these new guidelines are effective immediately. This revised approach by the central bank appears intended to streamline the refinancing process by leveraging domestic banking liquidity while supporting the crucial agriculture sector—responsible for rural employment and national food security—in a sustainable and less reserve-dependent manner.