Bangladesh Bank (BB) has instructed six banks linked to S Alam Group to suspend fund transfers and cash withdrawals in their accounts. Credit cards in their names cannot be used for transaction.
The instruction came on Monday.
However, all types of deposits can be accepted in their accounts, according to the letter from BB's banking inspection department-7.
The six banks which were instructed are: Islami Bank, First Security Islami Bank (FSIBL), Social Islami Bank (SIBL), Union Bank, Global Islami Bank (GIB), and Bangladesh Commerce Bank (BCB). These banks have already communicated the Bangladesh Bank's instructions to their branches and sub-branches.
The central bank has already freed Islami, Social Islami and National banks from S Alam Group.
Meanwhile, the central bank has started surveillance on the banks from which S Alam Group has loans in name and other names. The Bangladesh Bank has formed special teams that have started inspecting those banks.
The move comes as the central bank initiates a restructuring the boards of directors of the banks linked to the S Alam Group, said BB spokesperson Md Mezbaul Haque.
Once the banks' boards are reconstituted, the instruction to bar any withdrawals from the accounts would be relaxed, he added.
