The central bank has started blocking funds from the banks' current accounts for not complying with the advance-deposit ratio (ADR) rules in the recent months, officials said.
It has already blocked Tk 760 million from the accounts of two third-generation private commercial banks (PCBs). The banks mainly maintain their current accounts with Motijheel office of Bangladesh Bank (BB).
The blocked funds will not be considered in calculating CRR (cash reserve requirement) of the banks, said the officials.
Under the existing rules, the commercial banks have to maintain 6.50 per cent CRR with the central bank from their total demand and time liabilities on a bi-weekly basis.
The banks are allowed to maintain the reserve at 6.00 per cent, but the bi-weekly average has to be 6.50 per cent at the end.
The BB officials also said the funds have been blocked at rates ranged between 5.0 per cent and 10 per cent of excess credits provided by the banks concerned, and considering their respective ADR limits.
The BB earlier set the safe limit of ADR at 85 per cent for conventional banks and 90 per cent for Shariah-based Islamic banks.
Sources, however, said that Tk 510 million has been blocked from one PCB and rest Tk 250 million from another PCB. The banks were trying to comply with the ADR rules shortly through boosting the deposit positions, they added.
Besides, warning notices have already been served against half-a-dozen banks, asking them to bring down their ADR limit at safe position from the existing limits within the stipulated timeframe for avoiding such blocks, another BB official said.
The BB had given different timeframe for the banks to comply with the rules properly.
"We've blocked the funds of two banks from their current accounts mainly due to non compliance of the ADR rules," a BB senior official told the FE.
The bank's ADR has crossed 85 per cent for several months, which contravenes the BB's rules, according to the official.
"We've blocked the funds in line with Article 29(3) of the Banking Companies Act 1991 amended up to 2013," the central banker explained.
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