The central bank of Bangladesh has announced a structured, phased repayment programme for depositors of five merged financial institutions, aiming to gradually return their funds under a carefully managed recovery and disbursement framework. The initiative is designed to safeguard depositor interests while maintaining stability across the restructured banking entities.
According to officials, the plan has been formulated and will be implemented under the supervision of the Bangladesh Bank, which emphasised that protecting depositors remains its highest priority. The announcement was made during a briefing at the central bank’s Motijheel office in Dhaka, where assistant spokesperson Shahriar Siddique outlined the operational details of the repayment strategy.
The decision follows recent demonstrations by anxious depositors of the merged banks, who gathered outside the central bank headquarters demanding immediate access to their savings. Authorities, however, stated that an orderly phased system is necessary to ensure financial discipline and avoid systemic strain.
Structured phased repayment plan
Under the proposed framework, depositors will be able to withdraw a portion of their funds immediately, followed by incremental access at fixed intervals. The entire repayment process is expected to be completed within a maximum period of 21 months.
Initially, each depositor will be permitted to withdraw up to two lakh taka. After this first disbursement, additional withdrawals of one lakh taka will be allowed every three months until full settlement is achieved, depending on the account balance.
Different categories of deposits—including current accounts, savings accounts, fixed deposits, and monthly savings schemes—will be treated under separate but coordinated rules. Once fixed deposits reach maturity, depositors may withdraw up to one lakh taka in the first phase, while the remaining principal will be released gradually through renewal cycles. Interest earnings will be available for withdrawal at each renewal stage, though the principal will remain subject to the phased release structure.
Repayment schedule overview
| Phase | Timeframe | Withdrawal Amount | Conditions |
|---|---|---|---|
| Initial phase | Immediate | Up to BDT 2 lakh | All depositors eligible |
| Subsequent phases | Every 3 months | BDT 1 lakh per cycle | Based on balance availability |
| Final phase | Up to 21 months | Remaining full amount | Subject to repayment plan |
| Special facility | As required | Up to BDT 10 lakh or unlimited | Medical and emergency cases with documentation |
Special provisions for emergencies
The plan includes special provisions for critically ill depositors, including those undergoing long-term treatment such as kidney-related or other serious medical conditions. Such individuals may apply for higher withdrawals, including unlimited access for treatment expenses, provided valid medical documentation is submitted.
In urgent cases, appointed administrators will be authorised to approve withdrawals of up to ten lakh taka, while larger amounts will require direct approval from the central bank.
Institutional restructuring and reform
Officials also confirmed that broader institutional reforms are underway to improve operational efficiency across the merged entities. Multiple branches located in the same area will be consolidated into single, more efficient units to reduce costs and enhance service delivery. Several head offices operating in rented premises are also expected to be phased out gradually.
In addition, efforts are ongoing to integrate previously separate internal banking systems into a unified digital and operational platform. This move is intended to improve transparency, oversight, and overall governance.
The formation of new leadership for the consolidated institution is also in progress, with recruitment notices already issued for top executive positions. A new board structure is being finalised to ensure effective governance and strategic direction.
Government objective
According to the central bank, the broader objective of the reform programme is to transform the merged institutions into a stable, profitable, and sustainable banking structure. Through coordinated administrative, structural, and technological reforms, authorities aim to restore depositor confidence while reinforcing long-term financial sector stability in Bangladesh.