Bangladesh Bank raises cash withdrawal limit to Tk 400,000 from Sunday

Starting from Sunday, the Bangladesh Bank has set a new cash withdrawal limit of Tk 400,000 via cheques, up from the previous limit of Tk 300,000.

The decision, which raised the limit by Tk 100,000 in just a week, was communicated to all commercial banks on Saturday, with the central bank instructing strict adherence to the new limit for security reasons, reports bdnews24.com. 

This follows the interim government's directive for banking and financial sector reforms after the fall of the previous government on Aug 5.

The new government is also monitoring the situation to prevent individuals who amassed wealth through corruption and market manipulation during the Awami League’s tenure from transferring their assets out of the country.

Earlier, on Aug 8, the interim government imposed stricter controls, limiting cheque withdrawals to Tk 100,000.

Last week's directive had raised this limit to Tk 200,000.

The central bank has also advised banks to halt transactions if there is any suspicion involved. 

Despite the cheque withdrawal limit, digital transactions remain unrestricted, allowing for any amount to be transferred electronically.

Bank officials reported an increase in withdrawals by politicians, businessmen, and officials after the change in power on Aug 5.

This prompted Bangladesh Bank’s Banking Regulation and Policy Department to implement the latest controls.

The Bangladesh Financial Intelligence Unit, or BFIU, has instructed all commercial banks to exercise heightened vigilance over transactions involving political figures.

The BFIU issued this directive after a meeting with the chief anti-money laundering officers of various banks.