The central bank governor has been requested to establish a 'shariah banking division' with a separate organisational hierarchy to regulate and supervise shariah-based banks, financial institutions and Islamic windows.
A legal notice has been served on the Bangladesh Bank governor for taking steps to establish a 'shariah board' with national and international experts to regulate Islamic banking products here within 30 days.
Md Mahmudul Hasan, an advocate of the Supreme Court, sent the legal notice on Tuesday.
He warned that he would file a writ petition with the High Court if the demand is not fulfilled within the stipulated time.
"There are 10 full-fledged Islamic shariah-based banks in Bangladesh. In addition, 23 Islamic banking branches of 11 conventional commercial banks and 511 Islamic banking windows of 13 conventional commercial banks also provide Islamic financial services in Bangladesh."
There is a general public perception that the shariah-based banks and financial institutions are not following the Islamic rules properly, according to Mr Hasan.
These entities are just reaping the benefits of the religious sentiment of the Muslim people in Bangladesh.
But unfortunately, the Bangladesh Bank has no separate 'shariah banking division' to regulate and supervise Islamic shariah-based banks, financial institutions, and Islamic windows.
In addition, it does not have a 'shariah board' to scrutinise the banking products of the entities in question, Mr Hasan cited in the notice.
However, to comply with the legal obligation under section 7(A)(f) of the Bangladesh Bank Order 1972, the central bank has to establish a separate division to regulate and supervise Islamic shariah-based banks, financial institutions and Islamic windows.
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