No immediate funds for merged bank depositors, B.B.

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Dhaka, Dec 27 -Depositors of the five banks currently undergoing a merger will have to wait longer to withdraw their funds.

Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank confirmed on Saturday that there is no possibility of releasing funds to these depositors within the current year, and a specific date for the commencement of withdrawals has yet to be finalized.

However, a process is underway to eventually allow depositors to withdraw a maximum of Tk 2 lakh.

He dismissed reports circulating on social media claiming that withdrawals would begin this coming Monday (December 29). The central bank termed these claims "baseless and untrue."

Based on the needs of the depositors of the five merged banks, a policy to allow withdrawals of up to Tk 2 lakh is under consideration and will begin shortly, he said.

Arif further urged the public not to be misled by false information appearing in various media outlets and social platforms.

The five banks—First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank—are being consolidated into a single entity named Sammilito Islamic Bank PLC.

Sources indicate that the process of transferring account data to the newly formed bank is in its final stages and is expected to be completed within the next week. Once the process is finished:

All existing accounts will be automatically transferred to the Sammilito Islamic Bank. Depositors will not need to submit new applications or fulfill additional formalities.

Customers will be able to use their current checkbooks to withdraw up to the approved limit of Tk 2 lakh.

The central bank assured that any remaining balance above the withdrawal limit will remain secure in the respective accounts. Furthermore, profits will continue to be provided on these deposits according to the prevailing rates.

The merger and the controlled withdrawal facility are part of a broader move to stabilize the banking sector following liquidity crises triggered by past irregularities. - UNB