United News of Bangladesh

The government has introduced a newly designed Tk 5 currency note under the theme “Historical and Archaeological Architecture of Bangladesh,” which will enter circulation from Tuesday. According to a press release issued by the Finance Division, the new note bears the signature of Finance Secretary Dr Md Khairuzzaman Mozumder and will initially be available from the Motijheel office of Bangladesh Bank before being distributed through its other offices across the country. The new Tk 5 note measures 117 mm by 60 mm and features an image of Tara Mosque in Dhaka on the left side of the front panel. The middle portion carries a background design with Bangladesh’s national flower, the water lily, including leaves and buds. The reverse side of the note contains an image titled “Graffiti-2024.” The note has a predominantly light pink colour scheme and includes several security features. These include a 2 mm-wide embedded security thread visible from both sides when held against light, and a watermark showing the face of a Royal Bengal Tiger along with a bright electrotype watermark marked “5” and the monogram of the Government of Bangladesh. In addition, the front side contains repeated microprinted “BANGLADESH” text above the bluish guilloche pattern at the lower portion of the note. The Finance Division said all existing paper notes and metallic coins currently in circulation will remain valid alongside the new Tk 5 note. Considering the interest of currency collectors, Bangladesh Bank has also printed non-exchangeable specimen notes of the new Tk 5 design. These can be collected at a fixed price from the Bangladesh Bank Currency Museum in Mirpur.

Scheduled banks across the country will remain closed for seven consecutive days – from May 25 to May 31 – on the occasion of Eid-ul-Azha, according to Bangladesh Bank (BB). The central bank issued a notification on Monday stating that in accordance with the Ministry of Public Administration’s notification, all branches and sub-branches of scheduled banks will operate under normal working hours on May 23 (Saturday) and May 24 (Sunday), right before the holidays begin. Govt to cut bank borrowing in FY27 to spur private credit, curb inflation However, special arrangements have been made to facilitate the payment of salaries, bonuses, and other allowances to garment workers, as well as to keep import and export activities active ahead of the festival. To support this, bank branches located in garment-industrial zones, including Dhaka city, Ashulia, Tongi, Gazipur, Savar, Bhaluka, Narayanganj, and Chattogram, will remain open on a limited scale on May 25 and 26. According to the BB directive, during those two days, the office hours for these specific branches will be from 10:00am to 3:00pm, while transactions will be conducted from 10:00am to 1:00pm. Furthermore, bank branches, sub-branches, and booths situated in sea port, land port and airport areas have been directed to keep import-export activities functional on a limited scale. The central bank instructed the relevant desks to continue essential banking operations throughout the holiday period (from May 25 to May 31, excluding Eid day.

In a significant move to ease international travel for Bangladeshis, Bangladesh Bank (BB) has allowed the remittance of mandatory visa bonds and refundable security deposits required by foreign embassies, high commissions, and other visa authorities. The central bank issued a circular on Sunday, instructing Authorized Dealer (AD) banks to facilitate such payments on behalf of visa applicants. According to the new directive, banks are now permitted to issue international or virtual cards in the name of the applicant, specifically for this purpose. These cards can be pre-loaded with the necessary bond or security deposit amount. Furthermore, existing international cardholders can reload their cards under their travel quota to cover these specific costs. However, the central bank emphasized that these funds must exclusively be used for visa-related financial requirements. A key clause in the circular mandates the swift repatriation of these funds once the relevant embassy or authority refunds the bond or security deposit. “Banks are required to maintain separate registries to track these transactions. They must regularly monitor and report the progress of fund returns to the central bank,” stated in the circular. Before remitting any funds, banks must verify several essential documents, including-a valid passport of the applicant, a formal requirement letter or invoice from the embassy or relevant authority, and references or acknowledgment letters related to the visa application. The central bank clarified that these transactions can be processed through Exporter’s Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or international cards issued against such accounts. Industry insiders believe this decision will remove a major bottleneck for Bangladeshi travelers, students, and professionals applying to countries that require financial guarantees as a prerequisite for visa approval, making the overall process more transparent and accessible.

Bangladesh Bank has directed all commercial banks to set up dedicated counterfeit currency detection booths at cattle markets across the country to ensure the security of large-scale cash transactions during the upcoming Eid-ul-Azha. The central bank issued a circular in this regard recently asking banks to deploy note-counting and currency authentication machines to prevent the circulation of fake notes during the peak sacrificial animal trading period. According to the directive, each commercial bank must appoint a focal coordinating officer for the operation and submit their names, designations and contact details to Bangladesh Bank by May 17. For cattle markets in Dhaka North and South City Corporations, specific banks have been assigned individual markets to operate booths until the night before Eid. Outside Dhaka, Bangladesh Bank’s regional offices will coordinate the arrangement, while Sonali Bank will lead coordination in districts where the central bank has no branch presence. The circular also instructed that the booths must provide uninterrupted service throughout the trading period up to Eid night. Banks have been asked to maintain close coordination with local administrations, city corporations, municipalities and law enforcement agencies to ensure smooth operations and security. In Dhaka North, banks including Islami Bank, Shimanto Bank, AB Bank, National Bank, Al-Arafah Islami Bank, Eastern Bank, IFIC Bank, Meghna Bank, United Commercial Bank, City Bank, Agrani Bank, BRAC Bank, Dutch-Bangla Bank, Bank Asia, Jamuna Bank, Shahjalal Islami Bank and BASIC Bank have been assigned responsibilities. In Dhaka South, 19 banksincluding Premier Bank, Uttara Bank, Dutch-Bangla Bank, Bangladesh Krishi Bank, Dhaka Bank, Rupali Bank, Janata Bank, One Bank, Modhumoti Bank, Community Bank, Pubali Bank, Mercantile Bank, NCC Bank and Sonali Bank—have been deployed to operate detection booths across 13 designated cattle markets. Central bank officials said the initiative is aimed at safeguarding financial transactions during the festive season and ensuring confidence among buyers and sellers in a cash-intensive market.  

Credit card transactions by Bangladeshi nationals abroad and foreign nationals within Bangladesh witnessed a notable decline in February compared to the previous month, according to the latest report from the Bangladesh Bank. The central bank’s data shows that Bangladeshi cardholders spent Tk 377 crore abroad in February, a Tk 86 crore drop from the Tk 463 crore recorded in January. Among international destinations, the United States remained the top location for spending, accounting for Tk 54.03 crore. This was followed by Thailand (Tk 50.04 crore), Singapore (Tk 32.04 crore), and the United Kingdom (Tk 30.04 crore). Bangladesh Bank buys $60 million from banks to maintain exchange rate stability Other significant spending was recorded in Saudi Arabia, Tk 28 crore, India, Tk 25 crore, Malaysia, Tk 23 crore, and the Netherlands, Tk 17 crore, while Australia, the UAE, Ireland, and other countries accounted for the remainder. A similar downward trend was observed among foreign nationals using credit cards within Bangladesh. Spending by foreigners dropped to Tk 266.06 crore in February, down from Tk 344.04 crore in January—a Tk 78 crore decrease in a single month. US citizens were the highest spenders in Bangladesh, totaling Tk 86.09 crore. They were followed by citizens of Mozambique, Tk 35 crore, the United Kingdom, Tk 24 crore, and Australia, Tk 9.06 crore. Domestic credit card usage also saw a contraction. Transactions within the country fell by Tk 298 crore, sliding from Tk 3,720 crore in January to Tk 3,422 crore in February. Overall, the central bank report highlights a clear downward trajectory in credit card activity across all sectors during the month of February.

Bangladesh’s banking sector, which should operate as the backbone of the economy, is struggling to regain its footing due to a profound lack of good governance and deepening financial instability. According to the latest review by Bangladesh Bank, 17 banks failed to generate any net profit in 2024, while 11 banks gave up spending under Corporate Social Responsibility (CSR) altogether in 2025. Experts view these as a clear sign of the dire state of the industry, fueled by skyrocketing non-performing loans (NPLs), weak boards, and political interference. Masrur Reaz, Chairman of Policy Exchange Bangladesh and former senior economist at the World Bank, told UNB that the financial health of some banks has revealed the worsening situation of the sector. He pointed out that these banks will take several years to return to a good financial position. At the same time, the strict policy regulations and skilled management are also required for these banks. Towfiqul Islam Khan, an economist and the Additional Research Director at the Centre for Policy Dialogue (CPD), said that the scenario was a reflection of the economy of Bangladesh. The banking sector is like the blood circulation in the financial sector; while banks are in trouble, the overall economy will not be vibrant, he said. Zero CSR Spending by 11 Banks: A recent central bank report on CSR activities revealed that 11 banks made no contributions to social welfare in 2025. These institutions include: Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, National Bank, Global Islami Bank, Padma Bank, Union Bank, and National Bank of Pakistan. While CSR funds are typically allocated to sectors like education, health, and climate change, the zero expenditure by these banks suggests they are too preoccupied with internal financial and administrative crises to fulfill their social obligations. Profitability Crisis: Meanwhile, the central bank's performance report for 2024 identifies 17 banks that failed to earn a net profit. The list comprises several state-owned and struggling private lenders: Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, AB Bank, Bangladesh Commerce Bank, First Security Islami Bank, ICB Islamic Bank, IFIC Bank, National Bank, NRB Commercial Bank, Global Islami Bank, Padma Bank, Social Islami Bank, Union Bank, and National Bank of Pakistan. Analysts cite high NPLs, unearned interest income, rising operating costs, and irregularities in loan disbursement as the primary drivers of this unprofitability. Many of these banks are now facing such severe capital shortfalls that they struggle to maintain regular business operations. Interestingly, the report noted that six banks managed to contribute to CSR in 2025 despite recording no profits in 2024, likely by utilizing previous reserves—a move experts warn may challenge long-term stability. The crisis points toward systemic issues that have plagued the sector for years. The main challenges identified include: A significant portion of total loans is stuck with large borrowers who continue to enjoy new facilities without repayment. Political and influential interference in boardrooms often overrides commercial logic. Lack of profits has led to a sharp decline in Capital Adequacy Ratios (CAR). Also, reliance on manual systems and outdated software increases operational risks. Impact on the Economy: The fragility of the banking sector is casting a long shadow over the national economy. A weak banking system leads to reduced credit flow to industries, hindered investment, and slowed GDP growth. In 2025, the total CSR expenditure by the banking sector stood at Tk 345.05 crore, with Tk 98.44 crore going to education and Tk 85.64 crore to health. However, the fact that only a few strong banks carry the bulk of this expenditure highlights a massive disparity in financial health across the sector. Urgent Reforms Needed: The economists and industry insiders are calling for immediate intervention to stabilize the sector. Key recommendations include: 1. Strict Loan Recovery: Legal action against willful defaulters. 2. Board Accountability: Ensuring transparency and independence in bank management. 3. Digitalization: Modernizing risk management and banking software. 4. Policy Oversight: Strengthening CSR monitoring to ensure it remains a merit-based, profit-driven obligation. Without swift reformative steps, this deep-seated governance crisis and financial weakness pose a significant risk to the overall economic stability of Bangladesh.

After a hiatus of nearly two months, Bangladesh Bank (BB) has resumed purchasing US dollars from commercial banks through auctions to maintain stability in the foreign exchange market and keep the exchange rate under control. Bangladesh Bank spokesperson Arif Hossain Khan said the central bank bought $50 million from four commercial banks on Thursday at a cut-off rate of Tk 122.75 per dollar. This followed a purchase of $70 million at Tk 122.70 per dollar on Wednesday. With these transactions, the central bank has purchased a total of $120 million so far in April. In the current fiscal year FY2025–26, the total dollar purchase by the central bank stands at $5.61 billion. A high-ranking official of the central bank said banks were verbally instructed earlier this week to purchase remittance dollars at a maximum rate of Tk 122.90. However, by buying dollars at a slightly lower rate through the auction, the central bank sent a clear signal to the market that its goal is to stabilise the rate around Tk 122.75. The market has recently felt some pressure due to geopolitical tensions, particularly surrounding US-Iran tensions, causing some banks to acquire dollars at higher rates. However, central bank officials expect the situation to normalize soon, leading to a potential dip in the exchange rate.  

The parliament on Friday passed a bill to remove the maximum age limit of 67 years for the post of Governor of Bangladesh Bank, clearing the legal path for experienced individuals to lead the central bank regardless of their age. The Bangladesh Bank (Amendment) Bill, 2026 was passed by voice vote as Finance Minister Amir Khosru Mahmud Chowdhury moved the bill, which seeks to amend the Bangladesh Bank Order, 1972. As there were no further amendments proposed for the specific clauses, the bill was passed in its original form. Parliament ratifies 10 more ordinances The new legislation retains the provision for a four-year term for the Governor and the possibility of reappointment. However, it explicitly strikes out the condition from Clause 5 of Article 10 of the Bangladesh Bank Order, 1972, which stated that no person could remain in the post after reaching the age of 67. Under the previous law, the Governor was appointed for a four-year term and was eligible for reappointment, but mandatory retirement was fixed at 67 years. The new amendment eliminates this final restriction, allowing the government to appoint or retain a Governor based on merit and necessity rather than age. In the object of the Bill, Finance Minister Amir Khosru Mahmud Chowdhury emphasized that the Governor's role is critical for formulating and implementing monetary policy, maintaining financial stability, bank supervision, managing foreign exchange reserves, and coordinating with international financial institutions. The Minister argued that the existing age limit often acted as a barrier to appointing experienced, skilled, and wise individuals to this high-stakes position. The statement said that except for Nepal and Pakistan, many countries do not have a maximum age limit for central bank governors, making this change consistent with global practices. This is the third time in recent years the age limit has been addressed. In 2020, the limit was raised from 65 to 67 years to accommodate former Governor Fazle Kabir. The current move follows the interim government's appointment of Ahsan H. Mansur, 73, as Governor in 2024. At that time, an ordinance was issued to bypass the 67-year limit. Today’s passage of the bill in the Parliament provides the permanent legal framework for that decision and future appointments.

Bangladesh Bank (BB) Governor has assured Shariah board members of ‘full protection’ and functional independence, urging them to work without political influence to restore discipline in the country’s Islamic banking sector. “You, the members of the Shariah boards, will work independently; full protection will be provided to you by the Central Bank,” the Governor said while presiding over a high-level view-exchange meeting titled "Current Status, Challenges, and Future Way Forward of Islamic Banking" held at the central bank headquarters recently. This marked the first time a BB Governor sat with top Shariah experts, including members of the newly formed BB Shariah Advisory Board, chairmen of Shariah boards from almost all Islamic banks, and renowned Islamic scholars and academics. In his opening remarks, the Governor noted that money laundering incidents had occurred in several Islamic banking institutions in the past, primarily due to a lack of "proper supervision." He emphasized that since Islamic banking is designed to be asset-backed, such losses should not occur if the system is implemented authentically. "The fact that losses occurred is a matter of deep concern for us," he said, adding that empowering Shariah boards is the only way to re-establish effective oversight. During the meeting, Islamic scholars and experts presented a series of strategic recommendations to strengthen governance: Urgent enactment of a dedicated "Islamic Banking Act" and the appointment of a separate Deputy Governor and Executive Director at Bangladesh Bank to oversee the sector. Granting Shariah Supervisory Committees the legal right to work independently of the Board of Directors. It was proposed that the consent of at least three Shariah board members be mandatory for approving large investments. Ensuring that Shariah supervisors (Murakibs) are protected from management pressure so they can provide neutral audit reports. Establishing a Shariah Governance Framework modeled after Bank Negara Malaysia and creating a world-class research center and library under Bangladesh Bank to make Bangladesh an "Islamic Banking Hub." And finally capacity building, in the form of mandatory Shariah banking knowledge for the Board of Directors and a requirement for Bank MDs and top executives to hold recognized certificates in Islamic finance. The meeting also discussed the situation of five troubled Islamic banks (under the United Islamic Bank umbrella). Scholars urged the central bank to recognize the share value of existing shareholders to mitigate dissatisfaction and requested liquidity support on easy terms for struggling banks. The Governor concluded by stressing that banks and hospitals should operate solely as service-oriented institutions, free from political interference. He also expressed interest in hosting international Islamic finance conferences in Bangladesh, inviting world-renowned scholars like Justice Taqi Usmani. The meeting was attended by prominent scholars including Prof. Dr. Abu Bakar Rafique, Dr. Mohammad Manzur-e-Elahi, Dr. Mufti Yousuf Sultan, and representatives from almost all major Islamic and conventional banks operating Islamic wings.

Bangladesh Bank (BB) on Tuesday said depositors of the five banks merged into Sammilito Islamic Bank will receive their funds in phases under a structured repayment plan. The clarification came at a press briefing at the central bank’s Sena Kalyan Bhaban office, following a protest by depositors of the merged banks in front of the central bank headquarters.  “A specific scheme has been developed to return depositors’ money and the process is already underway in stages,” central bank’s Assistant Spokesperson Shahriar Siddique at the briefing. Under the scheme, depositors can immediately withdraw up to Tk 2 lakh and after that they will be allowed to withdraw Tk 1 lakh every three months, he said. The central bank said this arrangement will enable depositors to recover their full balances within a maximum of 21 months. For Fixed Deposit Receipts (FDR) and Deposit Pension Schemes (DPS), depositors will be able to withdraw Tk 1 lakh upon maturity. The remaining balance will be renewed under a revised schedule, allowing customers to withdraw profits at each renewal while the principal remains temporarily locked, the Assistant Spokesperson said. Bangladesh Bank has introduced special measures on humanitarian grounds It said depositors suffering from severe or life-threatening conditions such as kidney disease, will be allowed to withdraw any required amount upon submission of valid medical documents. Besides, the bank’s administrator may approve withdrawals of up to Tk 10 lakh and requests exceeding this limit will require approval from Bangladesh Bank. The central bank said efforts are ongoing to establish a permanent management structure for the new bank. Recruitment for the Managing Director is in progress, and a chairman will be appointed with government approval. The merger of five Islamic banks is currently focused on technical and operational integration, he said. Overlapping branches will be merged to reduce costs, rented head offices are being closed to centralise operations and specialists are working to unify five separate core banking systems into a single platform, he added “The government and Bangladesh Bank are committed to protecting depositors’ interests and turning the merged bank into a stable and profitable institution,” Siddique said urging customers to remain patient during the transition.