The Banking Division of the finance ministry has advised Bangladesh Bank to take necessary actions against four multi-purpose cooperative societies, which are allegedly running banking activities illegally.

In the letter the Division also feared that the current liquidity crisis in the banks might have been caused due to illegal activities of multi-purpose cooperative societies and multi-level marketing companies, a senior Banking Division official said.

The alleged four multi-purpose cooperative societies are: Maxism Group of Multi-Purpose Cooperative Limited, Kapotaksha Multi-Purpose Cooperative, Kingshuk Multi-Purpose Cooperative and Ehasan Society Bangladesh.

The letter, sent to BB Governor Atiur Rahman last week, was issued on the basis of allegation by one M Rokanzzam, a resident of Jessore.

These cooperatives have already opened outlets in district and upzila levels and have been involved in giving loans to the people at high interest rates.

They also have purchased lands and flats to run real estate business.

As per the letter, the four cooperatives got registered with the Joint Stock Companies and Firms after they had failed to collect licenses from the Micro-Credit Regularity Authority.

Shafiqur Rahman Patwari, secretary to the Banking Division, told daily sun that the government would take all necessary steps to stop illegal banking activities of multi-purpose cooperatives and MLM companies to improve liquidity situation of the banking sector. A total of 2,000 multi-purpose cooperatives are operating across the country now, said the letter.

News: Daily Sun/ Bangladesh/ 25-April-2012

All the 4501 Union Information Service Centers (UISCs) of the country will be brought under mobile banking services in the next three months to reach banking services to the rural people.

“A total of 1500 UISCs have already been brought under mobile banking services and the remaining 3001 UISCs will be brought within next three months,” National Project Director of Support to Digital Bangladesh (A2I) Md Nazrul Islam Khan told newsmen at an MoU signing ceremony.

The Memorandum of Understanding (MoU) was signed among the Local Government Division (LGD), UNDP supported A2I Programme of the Prime Minister’s Office and One Bank Limited at the PMO today.

Md Nazrul Islam Khan, Joint Secretary of LGD Shamima Nargis and Managing Director of One Bank Limited Farman R Chowdhury signed the MoU on behalf of their respective organizations.

News: Daily Sun/ Bangladesh/ 25-April-2012

Janata Bank Limited has opened its 877th branch at Patgram Upazila in Lalmonirhat aiming to provide modern banking services to the people in the area.

Md. Motahar Hossain, MP, State Minister for Primary and Mass Educ- ation inaugurated the branch as chief guest, according to a press release received here on Tuesday. Md. Shafiqul Islam, GM, Rangpur Division of Janata Bank Limited presided over the function.

Advocate Balaram Podder, Dabir Uddin Ahmed, Dr. Md. Abdur Rouf Sardar, Md Golam Sarowar and Md. Sirajul Islam attended the function.

News: Daily Sun/ Bangladesh/ 25-April-2012

Islami Bank Bangladesh Limited signed a Memorandum of Understa- nding (MoU) with Hajj Agencies Association of Bangladesh (HAAB).

Under the agreement HAAB will now use the ATM and online banking facilities of all branches of Islami Bank Bangladesh Limited, according to a press release received on Tuesday.

Mohammad Abdul Man- nan, Managing Director of Islami Bank Bangladesh Limited and Alhaj Jamal Uddin Ahmed, President of HAAB signed the agreement on behalf of their respective organisations. Md. Habibur Rahman, Muhammad Abul Bashar, Syed Abdullah Mohammad Saleh, Md Habibur Rahman Bhuiyan, FCA, AKM Abdul Malek Chowdhury, Md. Mahbub-ul-Alam, Deputy Managing Directors of Islami Bank Bangladesh Limited and Md. Golam Faroque, Senior Vice President, Golam Kibria, Vice President and Md. Shah Ali, EC members of the HAAB were present.

News: Daily Sun/ Bangladesh/ 25-April-2012

The second day of the nationwide hartal called by the main opposition BNP could not cast any major impact on banking activities in the city, though the bankers were under severe security risks during the shutdown.

Security experts also observed that most of the branches of different commercial banks usually store huge amount of cash and this becomes a major security concern during a strike.

BNP has declared a fresh hartal on Tuesday for the third consecutive day for getting back its leader M Ilias Ali, who has been missing along with his driver since April 17.

A high official of a commercial bank told daily sun that despite risks, they have to keep the branches open and operate transactions to meet regulatory compliance.

The front doors of the bank branches were found closed yesterday, but the back-doors were seen open for the customers.

During visits to different banks in city including the head offices of Sonali Bank and Janata Bank, Mouchak branch of Al-Arafah Islami Bank, Moghbazar banch of Bank Asia and Dilkusha branch of Islami Bank, daily sun correspondent found the presence of almost cent percent officials while the counters were also found busy in transactions.

Dr Syed Abdul Hamid, managing director and CEO of Agrani Bank, said they face risks both in cash movement and transaction during hartal.

Safety of the employees is also a concern as violence may occur at any moment while cash movement also becomes highly risky during hartal. However, we did not face any trouble so far, Dr Hamid added.

Md Abdul Mannan, managing director of Islami Bank Bangladesh Ltd, said hartal may benefit some people politically, but it certainly causes harm to the country’s businesses and economy.

Branches have to carry out transactions amid risks in every moments but it is a good thing that we have not experienced any security issue at any of our branches in the recent past, Mannan pointed out.

The corporate branch of Sonali Bank at Motijheel transacted around Tk one billion in terms of debit and credit while nearly 800 to 1000 customers visited the branch for their banking needs on Monday.

Fanindra Tribedi, manager of the branch, told daily sun that the transaction at his branch was satisfactory.

The Dilkusha branch of Bank Asia transacted over Tk 5 billion on Monday while the branch usually handles around Tk 10 billion on an average.

Many of our clients avoid banking on hartal days due to disturbance in regular movement and the risks involved in carrying cash, the manager of the branch, said.

Staff attendance is 100 percent and they arrived on time while turning up of the customers is also not frustrating, he said.

The typical hartal scenario has been changed compared to the hartals in 1995, when a strike could spread large scale panic and barred people from getting out of their homes. The effects of hartals are decreasing now, and time has come to think substitute of hartals, said Mijanur Rahman Khan, a customer at Malibag branch of Prime Bank Ltd.

News: Daily Sun/ Bangladesh/ 24-April-2012