United News of Bangladesh

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.  

Remittance inflows into Bangladesh have witnessed a massive surge, recording a staggering 353.3 percent growth in the first five days of April 2026. In comparison to the same period last year 2025, providing a major boost to the country’s foreign exchange reserves and macroeconomic stability. According to the latest data from Bangladesh Bank, expatriate Bangladeshis sent US$540 million between April 1 and April 5. In contrast, the remittance inflow stood at only $119 million during the corresponding period in 2025. Remittance hits record $3.75b in March The data further revealed that on April 5 alone, the country received $201 million in remittances in a single day. Analysts and central bank officials attribute this ‘unusual’ growth to several factors, including a stabilized US dollar exchange rate, the rising income of expatriates in developed economies, and a steady global economic recovery. Official figures show that the cumulative remittance inflow from July to April of the current fiscal year (FY 2025-26) has reached $26.74 billion. This marks a 22.1 percent increase from the $21,904 million recorded during the same period in the previous fiscal year. Finance Ministry and Bangladesh Bank officials expressed optimism that this positive trend in expatriate income will play a crucial role in mitigating foreign exchange shortages and maintaining a stable exchange rate.

Bangladesh Bank Governor Md Mostaqur Rahman on Monday stressed the need for greater focus on cottage, micro, small and medium enterprises (CMSMEs) and the agriculture sector to boost economic growth and create employment. The governor made the remarks when a Dhaka Chamber of Commerce and Industry (DCCI) delegation, led by its President Taskeen Ahmed, paid a courtesy call on him at the central bank headquarters in Motijheel. The governor said the economy has become overly dependent on a limited number of products, services and export markets in recent years, underscoring the urgency of diversification through CMSMEs and agro-based sectors. “This will help stimulate the domestic economy and generate employment,” he said, adding that high logistics and product management costs remain key drivers of persistent inflation. Highlighting broader macroeconomic challenges, the governor noted that Bangladesh’s GDP growth has been below expectations, affecting both foreign and domestic investment inflows. “There is no alternative to reforming business and trade policies and reducing the cost of doing business.” During the meeting, DCCI President Taskeen Ahmed expressed concern over the slowdown in private sector credit growth, which has declined to 6.03 percent—the lowest in 22 years. Taskeen said the current policy rate of 10 percent has pushed lending rates up to around 16–17 percent, reflecting a liquidity crunch in the banking system and making financing increasingly costly and less accessible, particularly for SMEs and manufacturing industries. To ease the situation, Taskeen proposed a gradual reduction in the policy rate to lower borrowing costs and encourage private investment. He also suggested introducing subsidised credit facilities for priority sectors, including manufacturing, export-oriented industries and SMEs. He further noted that a wide spread between lending and deposit rates—exceeding 5 percent—has eroded investor confidence and contributed to a decline in private investment. Emphasising the importance of restoring confidence in the financial sector, the DCCI president called for stronger governance in banking and financial institutions. He also raised concerns over recent changes in loan classification policy, where the timeframe has been reduced from nine months to three months, saying it has added pressure on businesses already grappling with high costs, energy shortages and weak demand. In this context, he proposed extending the loan classification period to at least six months and reconsidering loan rescheduling facilities for unintentional defaulters. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman, board members and senior officials of Bangladesh Bank were present at the meeting.

Bangladesh Bank has announced revised office and transaction hours for scheduled banks across the country in view of the ongoing fuel and electricity situation. According to a circular issued on Saturday, banks will remain open from Sunday to Thursday, with office hours from 10 am to 5 pm while transaction hours for clients will be from 10 am to 3 pm. Banking operations will continue from Sunday under the adjusted schedule until further instructions. Weekly holidays will remain unchanged on Friday and Saturday. The central bank said branches operating in port, customs and important economic zones will continue their activities as per existing special arrangements to ensure uninterrupted trade and business operations. The directive has been issued under the authority of the Bank Company Act, 1991.

Bangladesh Bank (BB) on Sunday issued a comprehensive ‘Cybersecurity Framework’ to safeguard the financial sector against increasingly sophisticated cyber threats. The new guidelines are mandatory for all scheduled banks, finance companies, Mobile Financial Service (MFS) providers, Payment Service Providers (PSP), and Payment System Operators (PSO) operating in the country. According to a circular issued by the Banking Regulation and Policy Department (BRPD), all relevant financial entities must ensure full compliance with the new framework by December 31, 2026. The central bank stated that the rapid expansion of digital platforms, online transactions, and cloud-based services has significantly increased the "attack surface" for cybercriminals. The framework aims to protect national financial stability, establish a minimum baseline for cyber resilience and governance, standardize the approach to detecting and responding to threats such as hacking, phishing, and ransomware and define clear roles and responsibilities for all relevant parties. Aligned with the international NIST standards, the framework is built around seven core functions: Preparation & Govern, Identify, Protect, Detect, Respond, Recovery, and Reporting. Under these functions, the framework mandates several critical measures, including: Mandatory CISO: Every organization must recruit a qualified Chief Information Security Officer (CISO) with industry-accepted certifications and provide them with a sufficient budget and human resources. Incident Reporting: For any critical cyber incident, organizations are now required to report to both internal and external stakeholders—including Bangladesh Bank and the BGD-CIRT—within 72 hours. Security Infrastructure: Banks must implement advanced solutions such as Security Information and Event Management (SIEM), Multi-Factor Authentication (MFA), and Web Application Firewalls (WAF). Data Protection: Strict protocols for data encryption, access control based on "least privilege," and regular audit log monitoring have been established. Oversight and Implementation The framework was developed by a technical committee headed by Debdulal Roy, Executive Director (ICT) of Bangladesh Bank, with contributions from various private and state-owned banks. Bangladesh Bank warned that these guidelines act as a "baseline" and that organizations should perform their own risk analysis to achieve higher maturity levels. The ICT Audit, Inspection, and Compliance Wing of the central bank will provide support to institutions during the implementation phase.

Bangladesh Bank (BB) on Sunday issued a comprehensive policy for credit cards, doubling the loan limit to Tk 40 lakh from the previous Tk 20 lakh to encourage a cashless ecosystem. The central bank also capped the maximum interest rate on credit card loans at 25 percent. According to the new circular, banks can now provide up to Tk 20 lakh in unsecured loans (without collateral) and up to Tk 40 lakh against collateral. Previously, these limits were Tk 10 lakh and Tk 20 lakh, respectively. The policy further specifies that cardholders can withdraw a maximum of 50 percent of their total credit limit in cash. The central bank stated that the updated policy aims to reduce complexities as the use of credit cards as an alternative to cash continues to rise. The guidelines are designed to strengthen risk management, protect consumer rights, and encourage responsible lending. The policy clarifies that the maximum 25 percent interest rate can only be applied to the outstanding balance, not the total bill amount. While interest-free periods apply to purchases, no such facility will be available for cash withdrawals. Regarding fees, the central bank directed that no charges can be levied before a card is activated. Late payment fees can only be imposed once per billing cycle. Furthermore, banks must notify cardholders via written or electronic means at least 30 days before changing interest rates or other charges. To prevent harassment, the guidelines strictly prohibit banks or recovery agents from physically or mentally harassing or threatening customers. The privacy of the cardholder's family, friends, or referees must be maintained. Recovery-related communication, whether via phone or in person, must be restricted to standard office hours. Banks are also required to maintain 24-hour helplines to allow customers to block cards immediately in case of loss or theft. To obtain a credit card, applicants must be at least 18 years old, possess an e-TIN certificate, and have a clean Credit Information Bureau (CIB) report. Students aged 16 who are dependents of a primary cardholder are eligible for supplementary cards. This new policy replaces the previous guidelines issued in 2004.

Bangladesh Bank Governor Md. Mustaqur Rahman on Tuesday affirmed that the operations of Sammilito Islami Bank, formed through the merger of five Shariah-based banks, will continue as planned. The Governor also sent a stern warning to those involved in the misappropriation of funds from these banks during the tenure of the fallen Awami League government, stating that the government will ensure they face legal punishment. Bangladesh Bank buys $25 million from banks to stabilize market Governor Rahman shared these directives during a meeting with the newly appointed administrators of the five banks and senior officials of the central bank at his office on Tuesday, according to meeting sources. During the meeting, the Governor instructed officials to expedite the appointment of a Managing Director for Sammilito Islami Bank. He confirmed that the current Board of Directors will remain in place to oversee the transition. In a move to stabilize the economy, the Governor emphasized the revival of industrial units under the jurisdiction of these five banks. New Bangladesh Bank Governor outlines vision for investment-led growth "Initiatives must be taken to restart factories that are currently non-functional. We must ensure these units return to production," he reportedly said, adding that the central bank would assist in clearing any outstanding foreign dues of these institutions to facilitate operations. Officials present at the meeting noted that the Governor’s clear stance has dispelled the prevailing confusion and rumors regarding the future of the merger. This follows a similar message delivered by the Governor on Sunday during a meeting with representatives from the Association of Bankers, Bangladesh (ABB). In that meeting, he asserted that ongoing reforms in the banking sector would continue unabated and that he would not succumb to any political pressure. Furthermore, in alignment with the current government’s electoral pledge to create 10 million jobs within the first 18 months, the Governor pledged policy support to revive factories that were shut down due to recent political shifts. Following the fall of the Awami League government, the interim administration merged five struggling banks—EXIM, Social Islami, First Security Islami, Union, and Global Islami Bank—to form Sammilito Islami Bank. The new entity began its journey with a total capital of Tk 35,000 crore. Of this, the government provided Tk 20,000 crore, while the remaining Tk 15,000 crore will be sourced from a dedicated fund for depositors. Additionally, an initiative is underway to pay out Tk 12,000 crore from the Deposit Insurance Fund to approximately 78 lakh depositors, with each receiving up to Tk 2 lakh.

Transparency International Bangladesh (TIB) has expressed concern over how independently the newly appointed Governor of Bangladesh Bank will be able to discharge his responsibilities, rising above conflicts of interest. The organisation has also raised the question of how a readymade garment and real estate entrepreneur, who rescheduled loans for his own company under special consideration, will be able to perform his duties impartially as Governor of the central bank. New pay scale could fuel bribery 'premiums' without reforms to public admin: TIB In a statement issued  on Thursday, TIB Executive Director Dr Iftekharuzzaman said the newly appointed governor’s experience in the banking sector is mainly linked to being a borrower, later a loan defaulter, and subsequently benefiting from loan rescheduling under special consideration. He said the governor has also played significant roles within influential business lobbies, including the readymade garment sector, the real estate sector, ATAB and the Dhaka Chamber. Dr Iftekharuzzaman questioned whether a governor appointed in haste would be able to meet public expectations of restoring a banking sector that fell into disarray during ‘an authoritarian kleptocratic regime’ while remaining free from the influence of business lobbies, borrowers and loan defaulters. TIB slams draft media ordinances as ‘mockery’ of free press He said nearly 60 percent of Members of Parliament and 62 percent of Cabinet members are primarily businesspersons while around 50 percent of MPs are loan defaulters with outstanding recoverable loans exceeding all previous records. In such a context, he asked how risky it could be for the banking sector to appoint ‘a loan-defaulting businessperson’ who has benefited from loan rescheduling under special consideration and from policy capture in sectors such as the readymade garment industry and REHAB. Through this appointment, he questioned what message is being sent both nationally and internationally and urged the government to reflect carefully on these issues. Referring to this unprecedented appointment—the first time in the country’s history that a businessperson has been appointed Governor of Bangladesh Bank—Dr. Iftekharuzzaman said such a decision risks turning the central bank once again into an instrument of business lobbies dependent on defaulted loans and political connections, rather than safeguarding national interest, as was the case during the authoritarian kleptocratic regime. He said, “The government must also consider how prudent it was to entrust the central bank’s leadership to a member of the election management committee of the ruling party. Moreover, the BNP, in its election manifesto, pledged to ensure good governance in the banking sector, discipline in financial institutions, and transparency and oversight. Appointing an individual burdened with conflict of interest as Governor of Bangladesh Bank constitutes a clear breach of that electoral commitment. The current government is well aware of the fragile state of the banking sector during the fallen authoritarian regime when partisan considerations and facilitation of vested interest groups by Bangladesh Bank contributed to large-scale money laundering, soaring defaulted loans, and overall economic vulnerability, he added. At a time when ensuring good governance in the financial sector including attracting foreign investment is critically important amid ongoing economic challenges, the effectiveness of this appointment remains questionable, said Dr Iftekharuzzaman.