Many financial institutions (FI) continue to conduct their financial transactions using different names and even the word 'bank' at the end.
Surprisingly a large part of them conducts these financial activities without any license and in many cases take money from the people and disappear.
This time Bangladesh Bank (BB) is going to initiate a strict investigation against these unregistered institutions.
The court has also ordered to stop such activities and following the directives issued in this regard, the central bank authorities have recently formed a seven-member committee and submitted it to the High Court.
Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank, has been made the chairman of the committee.
The other members are the central bank’s Executive Director Serajul Islam, General Manager of the Banking Inspection Department-1 Jiban Krishno Roy, General Manager of off-site supervision department Anwarul Islam, General Manager of the Department of Financial Institutions and Markets Zulkar Nayn, General Manager of Banking Regulation and Policy Department Maksuda Begum and Deputy General Manager of Banking Inspection Department-4 Munir Ahmed Chowdhury.
Asked about the matter, the committee spokesperson of Bangladesh Bank Serajul Islam said: “The committee has already been formed by the court order. The committee will start work soon as per the instructions.”
“The task of this committee will be to stop the activities of these unlicensed and illegal organizations and take strict legal action against them,” he added.
During the investigation, if the existence of any unauthorized banking or non-banking financial institution is found, it is directed to the respondents to immediately shut down the offices of those entities and take legal action against the responsible people with the help of the local administration, the court said in its order.
It also asked the Microcredit Regulatory Authority (MRA) to submit a list of the local money lenders who lend money by mortgaging immovable or immovable property before this court within 45 days.
According to the central bank sources, the committee will review the overall issue and submit a report to the court.
They will be able to recommend action under Section 109 of The Bank Company Act, 1991.
There is a provision of imprisonment for up to seven years and a fine of Tk10 lakh for providing banking services without approval or license for banking services.
If this committee can implement the directives, the illegal organizations which are conducting their activities in different parts of the country may be stopped.
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