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Banks' liquidation: BB assures depositors of getting back money

  • Published at 10:11 pm February 26th, 2020
Bangladesh-bank
File photo of Bangladesh Bank in Motijheel, Dhaka Mehedi Hasan/ Dhaka Tribune

With the Tk1 lakh coverage, 92% depositors would get back their money while the rest 8% depositors’ money would be returned after asset and liability assessment

Bangladesh Bank (BB) on Wednesday assured bank depositors that there was nothing to be worried about getting back their money in case of winding up of any scheduled bank. 

The BB gave the assurance at a press briefing held at its headquarters in the capital.

The central bank said 92% depositors’ money was protected under the existing rules.

BB executive director and spokesperson Serajul Islam and its general manager Md Abul Kalam Azad spoke at the briefing.

Serajul said that the depositors’ interest was upheld under the exiting banking rules and regulations.

As per the Bank Deposit Insurance Act- 2000, each of the depositors will get back up to Tk1 lakh from the deposit insurance trust fund within 180 days in case of winding up any bank, he said.

With the Tk1 lakh coverage, 92% depositors would get back their money while the rest 8% depositors’ money would be returned after asset and liability assessment, the BB spokesperson said. 

Along with protecting the bank depositors’ interest, the draft Bank Depositor Insurance Act- 2000 also included the depositors’ of non-bank financial institutions also, Serajul said.

Under the circumstances, the public perception that the depositors would get back only up to Tk1 lakh against any amount of deposit funds was baseless, he said.

When the BB would give consent to wind up any banks, individuals and small-scale depositors’ money would be returned first, he assured.

He also mentioned that 96% of the depositors would get protection of their money if the repayment amount was increased to Tk2 lakh from the existing Tk1 lakh.