Banks open under new govt, need time for full normalcy

Bank operations resumed on the first working day under the interim government, marking a return to normalcy with disruptions in cheque clearing at some Islamic banks.

However, bankers said it will be a gradual process for the banking sector to return to complete normalcy which will take more time.

Managing directors of several banks told The Business Standard that there was a slight increase in customer presence, and banking activities resumed as usual. They said the demand for cash withdrawals has decreased, and refilling ATMs remains a challenge.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said they are still facing challenges with sending money to ATMs, making it difficult to refill distant booths. "Despite this, we are working to maintain services." 

The banker added that it may take this week to normalise bank operations and said, "We are hoping that the law and order situation will be normalised within this week.

Arif Quadri, managing director and CEO of United Commercial Bank, said they have implemented several measures to keep ATMs functional. For remote branches, they are sending money to nearby branches and then distributing it step by step. 

"On Sunday, we managed to operate most of our ATM booths, and we plan to have the rest running by Monday," he added.

Disruption in cheque clearing

The central bank yesterday halted cheque clearing for an Islamic bank due to a negative balance in its current account, causing a temporary halt in cheque clearing across all banks in the country. 

However, all cheques were eventually cleared. Bankers noted that while cheque clearing usually completes by 5pm, which on Sunday, it extended past 7pm.

A senior central bank official said the central bank had long allowed the Islamic bank to continue transactions despite a negative account balance. 

"However, after the new government took over, we halted cheque clearing for this bank. On Sunday, the bank deposited about Tk1,000 crore to clear cheques, but the balance dropped to Tk183 crore as cheque clearing was stopped, and this amount was not approved either," he told TBS.

Another senior official confirmed that the bank's cheques were cleared only after the current account balance turned positive. 

"The delay in cheque clearing caused disruptions for many organisations, including issues with business transactions and salary payments," said the official.