Bangladesh News

Bangladesh Bank (BB) is going to launch fresh investigation into the illegal deposit collection and loan disbursement by Jubo Karmasangsthan Society (Jubok) flouting the central bank’s order.

The BB has received a number of complaints recently about illegal banking by Jubok though the central bank had asked it in July to stop such activities, BB sources said.

“We have formed 20 inspection teams to investigate the complaints and the teams will soon visit the places where Jubok has been operating,” a senior BB official said yesterday.

Stern action will be taken against Jubok if the fresh investigation finds that the organisation continues to collect deposits from commoners despite the BB order, the official said.

In July, the BB asked Jubok to return all savings and deposits to its members and depositors by December this year. It also asked Jubok to immediately stop collecting deposits from people in any form for the sake of public interest.

The BB also made public announcement in the media about Jubok’s illegal banking and asked people not to make any transaction with it. But the organisation, reportedly backed by a number of influential ruling alliance men, is still running the illegal activities across the country, sources said.

The finance ministry recently notified the Prime Minister’s Office (PMO) about the actions against Jubok.

Following a query, the finance ministry informed the PMO of the illegal financial activities and said Jubok has invested deposits, collected from commoners, for commercial purposes, which is against the existing rules and regulations.

Sources in the banking sector, however, are not happy with the BB’s ‘dallied’ and ’soft’ actions against Jubok despite the fact that previous investigations found its activities illegal.

“The central bank is hesitant about taking stern action against Jubok because they (Jubok) have strong backing,” one senior official of a private bank told The Daily Star.