Wednesday , 20 October 2021
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SB asked to settle inland bill payments or face action
Bangladesh Bank Governor Dr Atiur Rahman on Thursday said the central bank will go tough against Sonali Bank if it fails to settle its inland bill payments (IBP) with other banks, reports a news agency.

“We’ve asked Sonali Bank to resolve its IBP issues with other banks within September next,” he said while addressing a seminar on monetary policy at Bangladesh Institute of Development Studies (BIDS).

The BB boss further said, “How could they settle this? … After September, the Bangladesh Bank will just realise the money deducting from the Sonali Bank’s account. I want to give a strong message in this regard.”

The central bank governor referred to a decision made at the meeting with the bankers on July 21 this year that the Sonali Bank will have settle its IBP issue with other private banks by September 2016.

After the Hallmark loan scam of Sonali Bank in which taka several thousand crore were misappropriated through inland bills payment, many banks which purchase such bills from Sonali Bank are not getting their payments.

These banks have long been pursuing to realise the money from the state-owned bank, but there has been no breakthrough. Finally, they raised the issue with the central bank.

After the Hallmark scam, the central bank governor claimed that Bangladesh Bank has taken various steps to bring the banks’ L/C opening and inland payments within a strong monitoring so that no further such incident takes place.

This has yielded a good result and no such incident happened, he said adding, the central bank has introduced an electronic monitoring system through which opening of every single L/C is intensely monitored. If any bank fails to make the payment against the bills, the next day a letter is issued against such bank.

The managing director and audit department of a bank are liable for any failure over the payment as they have to jointly sign the relevant documents while sending it to the central bank.

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