NBFI depositors seek full repayment guarantee by December

• About 12,000 depositors are still waiting for their money.
• The alliance rejected repayment without profits.
• Depositors accused regulators of staying silent.
• They demanded action against those responsible.

The depositors of troubled non-bank financial institutions (NBFIs) today demanded a legally binding government gazette notification ensuring full repayment of their deposits, along with profits, by the end of this year, alleging that they were being kept in the dark about the government's plans.

At a press briefing at the National Press Club, an alliance representing affected depositors said neither Bangladesh Bank nor the finance ministry had officially communicated with them despite a silent protest and memorandum submitted on May 6.

The alliance said in a press release provided at the event that around 12,000 depositors were still waiting for clarity regarding the fate of their savings, many of whom had been unable to access their money since 2019.

"We are only hearing things through the media. No ordinance has been issued yet. No official government order has reached us," said Jafar Ullah Khan, convenor of the Alliance of 6 NBFIs Depositors Recovery Committee.

“We will not accept any 'under process' language as an alternative to a legal commitment. Issue the gazette notification. Fix a timeframe. Give it in writing,” he added.

The alliance argued that depositors had placed their life savings in institutions approved by Bangladesh Bank and therefore the central bank must take responsibility for ensuring repayment.

The depositors did not gamble or make risky investments, they said, adding that teachers, pensioners, widows, and retired individuals deposited their savings relying on the regulator's approval of the institutions.

The depositors also rejected any proposal to return only the principal amount without profits.

Kawsar Hossain Chowdhury, co-founder and coordinator of the alliance, said contractual profits were promised under the deposit schemes and depositors should not bear losses caused by institutional failures and regulatory negligence.

“Now, they are being offered only the principal money back -- as if years of waiting have no value, as if inflation does not exist,” he said.

Citing inflation data and contractual deposit rates, the alliance claimed that a depositor who invested Tk 10 lakh in 2019 had effectively suffered a loss of more than Tk 12 lakh due to inflation and loss of profit income.

The alliance also demanded criminal proceedings against directors, officials, and default borrowers responsible for the collapse of the institutions.

It called for recovery of assets from defaulters, publication of a public register naming responsible individuals, and ensuring that no one is exempted from liability.

Former member of the National Human Rights Commission of Bangladesh Munira Khan said they were not beggars seeking aid for underprivileged people, but rather demanding the return of their own funds stuck in the NBFIs.

She said they wanted an implementable roadmap for refunding the money, not verbal promises.

Depositors kept their funds in the NBFIs because they were approved financial institutions under the central bank, but Bangladesh Bank did not issue any warning while the institutions were being looted, said Prof Farid Rashid Kamal, who is also an affected depositor.

Auditors and credit rating agencies also presented rosy pictures of the NBFIs. Therefore, all those responsible for safeguarding the institutions failed in their duties. Now, it is a moral duty of the government to ensure the return of the funds, he added.