BNP MP proposes demonetising Tk 500, Tk 1,000 notes to boost bank deposits

BNP lawmaker AM Mahbub Uddin Khokon today proposed temporarily demonetising the Tk 500 and Tk 1,000 banknotes to bring people's cash savings back into the banking system.

He made the proposal while participating in the general discussion on the proposed budget for the 2026-27 fiscal year in parliament.

Highlighting the erosion of public trust in the banking sector, Khokon said many people now avoid depositing money in banks and instead keep cash at home.

“Those who previously laundered money abroad or were linked to the authoritarian regime have also stashed large sums of cash. As a result, a huge amount of money remains outside the banking system,” he said.

The MP from Noakhali-1 said, "The banks have been looted. Do we really need so many banks in Bangladesh? We don’t. If someone becomes an MP, he needs a bank. If someone becomes a leader, he needs a leasing company. This system must be stopped."

"The number of banks must be reduced. We don’t need so many banks... The safety of public deposits must be ensured," he said.

Calling money laundering a major problem, the MP said, "Since independence, there has been a promise to bring back the laundered money. “But in reality, not a single taka has returned. Once money enters the international financial system, it becomes extremely difficult to retrieve.”

He added that there are several problems in implementing the budget. “The first is the deterioration of law and order in Bangladesh. We cannot expect improvement in law and order while millions of youths remain unemployed. We must create jobs. Employment opportunities for young people must be ensured.”