Economy
HC says ‘No Bank can file Cheque Dishonor Case’
From now on, HC, High Court ordered no Bank or any financial institution can file cheque dishonor case against any person for loan recovery.
On Wednesday 23, Judge Md Ashraful Kamal on a single HC bench dismissed the Brac Bank cheque dishonor case against a person for loan recovery.
A bank or financial institution can file a case in the Court of Debt only in the process detailed in the Loan Act, 2003 for recovery of loan. Besides, all cheque dishonor cases filed by banks or financial institutions presently pending in the court will be closed, the judgment stated.
According to the Judgement, the court stated, the cheque that bank takes against the loan is guarantee. Not a negotiable instrument. A cheque dishonor case cannot be filed against the cheque held as collateral.
The court said that a loan from a bank or financial institution is taken through a concord. Some corrupt, dishonest officers of the bank misuse cheques for their own interests, to implement their hidden agendas. Their behavior is similar to that of merchants.
The court has also said that taking a blank cheque against a loan is illegal. Banks and financial institutions have been doing this illegal thing for a long period of time.
HC gave instructions to the lower court and responded that if any bank or financial institution files a cheque dishonor case from today, the court will directly dismiss it. At the same time send them to the debt collection court.
HC says, banks were supposed to be the poor’s friends, instead, the bank and other financial institution are sucking the blood of the poor people. This can’t be. I hear about the bank drop the loans of those who are in default with thousands of crores of takas. But I never heard of a poor man’s loan being forgiven.
Banks and financial institutions are filing cheque dishonor cases without filing cases under the Money Lending Act for recovery of loans. That’s why our criminal system has become almost ineffective. Hence, from now on, banks or financial institutions can file cases only in credit court. Not in any other law.
The court said that banks were supposed to be friends of the poor, but instead of that, banks and various financial institutions are sucking the blood of the poor. It can’t be. I hear about the bank waiving off the loans of those who are in default with thousands of crores of takas. But I never heard of a poor man’s loan being forgiven. Like sapphire farmers, their aim is to collect debts, like advance traders. Banks and financial institutions are filing cheque dishonor cases without filing cases under the Money Lending Act for recovery of loans. Due to this our criminal system has become almost ineffective. Therefore, from now on, banks or financial institutions can file cases only in the credit court. Not in any other law.
The court has directed the Governor of Bangladesh Bank to issue instructions in the light of the HC’s verdict to banks and other financial institutions.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
