Depositors demand end to plight as savings trapped in six NBFIs

Retired Bapex employee AMM Ansarullah died five months ago without proper treatment after the Tk16 lakh he had placed with People's Leasing remained inaccessible for years.

The savings were meant to pay for his daughter's wedding and his son's education, while the profit from the deposit was supposed to support the family's daily expenses after retirement. Instead, the family's hopes gradually collapsed as the money remained frozen.

In 2020, his daughter's marriage took place without any celebration. Later, as Ansarullah's health deteriorated, the family struggled to arrange treatment.

Speaking at a press conference in Dhaka today, his widow Aktari Begum broke down in tears while recalling her husband's final days.

My husband died five months ago. Even though our money remained with People's Leasing, he could not receive treatment in the final stage of his life.

The press conference was organised under the banner of the Alliance of Depositors of Six Non-bank Financial Institutions Facing Liquidation.

"My husband died five months ago," Aktari said. "Even though our money remained with People's Leasing, he could not receive treatment in the final stage of his life. Before his death, we wanted to borrow from relatives for his treatment, but he refused. He said that if we took a loan for treatment, the family would later be burdened with debt. In the end, he died because he could not receive proper treatment."

She added, "I do not know how I will survive with my children now. I cannot even ask others for help. I appeal to the Bangladesh Bank and the relevant authorities to take action."

The plight of Ansarullah's family was one of several accounts shared at the event, where depositors described years of financial distress caused by their inability to recover money placed with troubled non-bank financial institutions, or NBFIs.

Professor Nashid Kamal, who read out a written statement at the press conference, said depositors had been victims of deception for years.

She said that although a range of reforms, deposit protection measures and recovery mechanisms had been introduced in the banking sector, little effective action had been taken in the NBFI sector.

"The recovery and deposit protection structures introduced in the banking sector should also be implemented in the NBFI sector with the necessary modifications, while fully preserving the basic rights of depositors," Prof Nashid said.

She added, "Depositors are depositors, whether their money is in a bank or in an NBFI. Both sectors must provide equal protection, fair compensation and timely repayment. Any law, regulation or reform introduced for the banking sector must also be implemented in the NBFI sector without delay."

Among the demands raised by the alliance were the announcement of a clear, transparent and time-bound roadmap to repay deposits within 3 to 6 months, the rapid implementation of recovery plans for troubled NBFIs, regulatory protection equal to that provided in the banking sector, and full transparency and accountability in both liquidation and recovery processes.

The depositors also demanded strict and visible legal action against those involved in financial irregularities and corruption.

Professor Monira Khan said she had come to the press conference in a deeply frustrated state.

"On behalf of thousands of depositors, I can say that we repeatedly hear that we will receive our money soon and that it will be returned before July," she said. "But in reality, we are seeing no progress."

She said her sister also had money deposited with People's Leasing.

"She is suffering from cancer and has been diagnosed again after six years," Professor Monira said. "Yet even after approaching the institution, she has not received her money."

She added: "Customers are unable to recover even their own savings and are forced to ask for them like beggars. Where are we supposed to go? While waiting for this money, many people have lost their loved ones."