Dhaka, Bangladesh (BBN)- The central bank has asked all the scheduled banks not to allow cash withdrawals of more than Tk 5 lakh only for this week instead of Tk 4 lakh earlier.
The Bangladesh Bank (BB) at first imposed the restrictions on cash withdrawal by individuals at the evening on August 10 following the deterioration of law and order situation.
The overall security circumstances in the country had experienced a severe setback after the fall of the Awami League government on August 5 that led to the imposition of the restriction on cash withdrawal.
After August 10, the Bangladesh Bank has hiked the limit one time in each of the previous consecutive four weeks.
Each week, the BB hiked the cash withdrawal limit by adding 1 lakh more with the current amount.
Today, the BB hiked the amount for fifth time raising the cash withdrawal amount to Tk 5 lakh.
Initially, the BB slapped the restriction on individual cash withdrawal of over Tk 1 lakh as banks were facing challenges in transferring cash from one place to another due to the weaken law and order situation.
The central bank had also instructed the banks to monitor transactions through cheques and block the transfer of funds if found suspicious, officials said.
The cash withdrawal limit has been enhancing gradually as security concerns have also been easing in a steady way, officials explained.
Earlier, the central bank had also advised the banks to encourage the depositors to pay their parties through crossed checks instead of cash.
BBN/SSR/AD