A significant legal overhaul is underway to expand judicial jurisdiction over financial offences, particularly cheque dishonour cases that undermine trust in non-cash transactions.
The post-uprising government’s council of advisers approved the Negotiable Instruments Act 2025 on Thursday, which will soon be enacted through an ordinance during the interim government’s tenure, officials confirmed.
This legislation represents the first major update to the negotiable instruments framework in 144 years, prompted by a rise in cheque dishonour cases and mounting pressures on the financial system.
The reform primarily focuses on expanding judicial authority to expedite case disposal. Under the revised law, metropolitan and first-class magistrates will now be able to hear cheque dishonour cases, increasing the number of courts able to try such offences. Cases involving amounts exceeding Tk 500,000 will fall under joint sessions judges’ jurisdiction.
“With the expanded jurisdiction, cases are expected to be resolved more quickly,” a senior official from the Financial Institutions Division of the Ministry of Finance told The Financial Express on Saturday.
Delays under the current law have deterred affected parties from pursuing legal action, the official added.
The Negotiable Instruments Act governs financial instruments such as promissory notes, bills of exchange, and cheques. In practice, however, most disputes stem from cheque dishonour, a problem that has eroded confidence in non-cash transactions.
Under the new law, cheque dishonour will remain a criminal offence, with penalties ranging from six months to two years’ imprisonment.
The law introduces stricter conditions for appeal: defendants must repay 50 percent of the cheque amount before challenging a verdict, aiming to discourage frivolous lawsuits and delays.
Bankers have largely supported the reforms, citing weak enforcement of cheque obligations as a distortion in credit behaviour. Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), welcomed the update, stating it would offer relief to victims of non-payment and boost confidence in formal financial channels.
“We welcome this act, as it broadens court access and makes it easier for aggrieved parties to file cases,” Arefin, also managing director and CEO of City Bank, told the FE.
“If properly implemented, it will reduce the suffering caused by prolonged legal proceedings.”
After receiving legal opinions from the relevant ministry, the draft law will be sent to the President of Bangladesh for promulgation as an ordinance.
