Banking Digest

Steps for handling cheque dishonour cases in Bangladesh under the Negotiable Instruments (NI) Act, 1881.   1. Present Cheque:  Time: 1-3 days Submit within 6 months of signing Obtain dishonour slip for insufficient funds only. 2. Appoint Lawyer & Prepare Documents Time: 1-2 weeks Engage panel lawyer Gather required documents: legal notice, slip, NID, PoA, cheque copies, petition (Form-87).  3.  Legal Notice Stage Time: 45-60 days Issue notice under NI Act sections 138/140 within 30 days of dishonour Send via post/A/D/newspaper, demanding payment Allow 30-day grace period from notice receipt for payment Non-compliance enables filing. 4. Filing & Cognizance Time: 2-4 months Draft and vet petition with lawyer Prepare complaint with 3 witnesses (officer, petitioner, lawyer) Vet with branch/LAD Include all directors for companies File case to CMM (metro) or CJM (district) Court actions: cognizance (s.141), summons/warrants, police inquiry/report, bail/ADR options....

Here are the major tax changes in Bangladesh for 2024-2025 and the upcoming 2025-2026 assessment year: Individual Income Tax Changes The tax-free income threshold for general taxpayers is BDT 350,000 per year, with rates increasing progressively to 30% for income above BDT 2,000,000. For future years (2026-2027 and 2027-2028), the initial exemption will increase to BDT 375,000.  Special categories maintain different thresholds: women and senior citizens over 65 have BDT 400,000 tax-free, physically challenged persons and third gender individuals have BDT 475,000, and war-wounded freedom fighters have BDT 500,000. Corporate Tax Changes Non-publicly traded companies saw a reduction in tax rate from 27.5% to 25.0% with certain conditions, and One Person Companies (OPC) were reduced from 22.5% to 20.0% . However, for non-listed companies, the tax rate is proposed to increase to 27.5% from 25%  in the Finance Ordinance 2025. Publicly traded companies that list more than 10% of thei...

A Heba (gift) deed is widely recognized under Muslim personal law, but when the gifted property belongs to a minor, any attempt to sell, transfer, or mortgage it requires prior permission from the court. Courts and financial institutions maintain this requirement to protect the minor’s long-term interest, as any unauthorized disposal of a minor’s property can later be declared voidable. Why Court Permission Is Necessary Mortgage creates a legal and financial liability on the property.Even if the father is the natural guardian, courts hold that a minor’s immovable property cannot be mortgaged without judicial approval. Banks will not accept mortgage security involving a minor unless the guardian submits a Guardianship Certificate or a Court Sanction Order permitting the mortgage. Filing Procedure for Court Permission (Bangladesh) 1. Prepare Application Under Guardians and Wards Act, 1890 The natural guardian (usually father) must file an application under: Section 29 & 31 of the Gua...

  (if defendant contest) 1. Filing  2. Summon Return 3. Written Statement  4. Mediation  5. Issue frame  6. Peremptory Hearing 7. Further hearing  8. Argument  9. judgement (Primary decree) After getting primary decree to execute the decree the decree holder have to file execution suit with in 1 years as per provision of section 28 of Artha Rin Adalat Ain’ 2003 Execution suit:  1. Filing  2. Show cause  3. Steps which includes       a) auction if there is any schedule/ collateral      b) warrant under section 34      c) certificates under section 33(7) and 33(5) [for   33(5) have to comply 33(4)] Stages of Artha Rin suits (if defendant do not contest) 1. Filing  2. Summon Return 3. Paper publication u/s 7(1) 4. After paper publication court will fix date for written statement  5. Ex parte hearing 6. Ex parte decree After getting primary decree to execute the decree the...

(For Internal Use of Banks & Financial Institutions in Bangladesh .This guideline has been prepared independently in my own professional interest while writing an article for an online newspaper.  1. Purpose of the Guideline This guideline aims to establish a standardized process for assessing earthquake-related structural risks during the evaluation and approval of mortgage-backed loans. Bangladesh lies in a seismically active zone; therefore, prudent risk management requires verification of building safety, structural compliance, and disaster resilience before approving any mortgage loan. 2. Scope This policy applies to: All home loans, home equity loans, and property-backed facilities. Both individual and corporate borrowers. New, under-construction, and existing building. 3. Key Responsibilities 3.1 Bank’s Responsibility:  The bank must ensure: 1. The mortgaged property is structurally safe and not vulnerable to severe earthquake risk. 2. All relevant documents related...