Bangladesh Bank has eased withdrawal restrictions for depositors of five Islamic banks being merged into Sammilito Islami Bank PLC, shortening the lock-in period for long-term deposits, doubling loan facilities against fixed deposits and expanding access to funds for medical, educational and other emergency needs.
The central bank issued the revised Bank Resolution Scheme 2025 on Sunday with immediate effect.
The scheme, signed by Governor Md Mostaqur Rahman, covers EXIM Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank, whose assets, liabilities and human resources are being transferred in phases to Sammilito Islami Bank.
The biggest change concerns long-term fixed deposits of individuals. Under the previous scheme, deposits with maturities exceeding one year could remain locked for three, four or five years depending on their original tenure.
Under the revised scheme, such fixed deposits will be treated as two-year deposits from the later date of their maturity or 29 December 2025, eliminating the previous three-, four- and five-year tiers. Depositors may also withdraw accrued profit at each renewal.
The earlier scheme provided special withdrawal relief mainly for depositors undergoing kidney dialysis or cancer treatment. The revised rules allow restrictions to be partially or fully relaxed for medical treatment, education or other important emergency expenses of account holders, their spouses, parents, sons or daughters.
Deposits under Hajj savings schemes, or funds of customers with confirmed Hajj registration, may be paid directly to the relevant Hajj agency or government without the usual restrictions.
The limit on loans or investment facilities against fixed deposits has doubled. Eligible depositors other than banks and finance companies may now borrow up to 40 per cent of their deposits, up from 20 per cent.
The scheme also clarifies that proceeds from savings certificates and remittances will continue to be paid as usual.
However, a new condition applies to profit payments. Profit will be calculated under Shariah principles only when the five banks earn a net profit. Otherwise, certain classes of depositors may receive a discretionary financial benefit called “Ihsan”, subject to Bangladesh Bank approval, which may also be applied retrospectively.
New rules have also been introduced for deposit pension scheme (DPS) accounts.
At maturity, depositors may withdraw up to Tk200,000 in protected deposits, while the remainder must be converted into a fixed deposit for at least two years. If a DPS is encashed before maturity, no profit will be paid on the deposited principal, which will also be converted into a minimum two-year fixed deposit.
Bangladesh Bank has retained the power to partially or fully relax withdrawal restrictions for any depositor or class of depositors in cases involving emergencies, public interest, financial stability or depositor interests.
