Mehnaz Begum, a client of EXIM Bank, broke down in tears at the very beginning of our conversation on Wednesday morning. She said she had spent her entire life as a teacher. After retirement, she withdrew her provident fund savings and placed the money in a fixed deposit at the bank. Now, she can neither withdraw her principal nor receive her profit.
“Bangladesh Bank is slowly pushing us toward death,” she said. “Even though my money is in the bank, I cannot withdraw it for my medical treatment.”
Afzalul returned to the country during the COVID period after working in Saudi Arabia for many years. He did not want to receive interest from conventional banks, which is why he deposited his savings in Social Islami Bank.
Now he feels helpless. “After working for so many years, today I am like a beggar on the street. I am not getting justice. Why won’t I get my own money back?” he asked.
These cries represent nearly 76,000 people – depositors of five Islamic banks – who now feel destitute and helpless. What is their fault? What crime did they commit? They deposited their money in banks approved by the government. At the time, the government did not warn them that keeping money there was risky. So why should the government not take responsibility for their deposits?
Depositors of the merged five banks, now operating as Shommilito Islami Bank PLC (Combined Islami Bank), have been suffering for two years, unable to withdraw funds even in emergencies. Most recently, as an added hardship, Bangladesh Bank decided to deduct previously paid profits from depositors’ accounts under a “haircut” policy.
Under pressure from protests, the outgoing Governor of Bangladesh Bank, Ahsan H. Mansur, announced that depositors would receive 4% profit for 2024 and 2025.
However, many had originally deposited their funds under agreements promising 12%-14% returns. Around 7.5 million customers have demanded the cancellation of the haircut, but it has not yet been withdrawn.
Depositors are now waiting for action from the new government, though no official statement has been made so far. The new Governor of Bangladesh Bank, Mostakur Rahman, stated at a meeting on Tuesday with administrators of the merged banks that the operations of Shommilito Islami Bank would continue.
Meanwhile, affected depositors have announced a peaceful human chain protest in front of Bangladesh Bank on Thursday, demanding full withdrawal of the haircut and restoration of normal banking operations.
The five merged banks are First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank.
Depositors argue that a new government has come to power with a strong mandate and has appointed a new governor. They hope the new leadership will reverse what they consider unjust decisions by the former governor. “Depositing money in a bank has become a sin,” many say. “We deposited in institutions approved by Bangladesh Bank.”
Bd-pratidin English/ ANI
