As part of the plan, the BB will sit with treasury heads of commercial banks on Wednesday and Thursday to share this matter before getting their feedback on the proposed monetary move.
The officials said the move would not only force commercial lenders to seriously focus on efficient fund management, but also help make transactions in the call money market vibrant.
To meet an IMF condition, as part of its $4.70-billion lending package for stabilising the country's macroeconomic situation, the banking regulator cut down the liquidity support against the repo facility twice a week (Monday and Wednesday) since last July.
Seeking anonymity, a BB official said they planned to limit the repo-based cash support to banks once a week instead of the current two days.
"In the upcoming meetings, we'll share our plan with treasury officials to get their response to this matter. Today or tomorrow, we need to do it to meet a condition of the IMF."
The central banker said they would give some time frame for banks so that they could take proper planning to absorb the change in monetary affairs.
"I think banks might face some stress temporarily, but it will be a good move for them in the long run," he added.
But people in the banking sector opined differently, saying that it would create more burden on banks through disrupting their future fund commitments in the current context of liquidity tightness on the money market.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank Limited, said the move, if executed, would further tighten liquidity, which might cause some sort of volatility in the market.
It would not create too much pressure on the banks having enough liquidity, but they would be very cautious in using their funds, he said.
"I think the BB may consider cutting down the volume of cash support against the repo facility instead of going for a weekly day for it," commented the experienced banker.
According to Dhaka Bank treasury head and executive vice-president Mahbubur Rahman, banks normally make future fund commitments considering options through which the funds will come.
"If the BB decides to give repo-backed liquidity support once a week instead of two working days, it will cause serious problem for the banks to execute the commitments even after curtailing the volume of the fund promises."
To maintain their commitments, according to the banker, banks will go for sourcing liquidity from interbank market or desperately hunt deposits to meet their local currency obligations.
"And it might cause an unhealthy competition in the market to lure depositors, which wouldn't be a good sign," remarked Mr Rahman.
He said banks normally take money from the central bank under the repo facility at a policy rate (now 9.50 per cent) and invest the funds in high-yielding government securities or other sectors.
By doing so, banks get a handsome spread. Now, opportunities will be squeezed, according to the Dhaka Bank's treasury head.
Seeking anonymity, a treasury head of another private bank says banks have been operating their banking activities in this challenging time riding on some support instruments.
"If it's curtailed, the number of liquidity crisis-ridden banks will go up further," he feared.
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