DNCC seeks govt help to encash Tk 350m FDRs

Dhaka North City Corporation (DNCC) has sought government intervention to encash its Tk 350 million deposits stuck at various private commercial banks in the form of fixed deposit receipts (FDRs) for long.

It recently requested the Financial Institutions Division (FID) under the finance ministry to take measures in this regard.

According to the existing provision, government agencies can invest up to 50 per cent of their surplus funds.

As per the limit, DNCC kept the funds in several banks, including Global Islami Bank, Social Islami Bank, First Security Islami Bank, and Bangladesh Commerce Bank.

Of the banks, two are unable to encash the FDRs due to a liquidity crisis. The two others have not responded to DNCC's multiple encashment requests.

DNCC has already informed the Local Government Division of the matter.

It said it has repeatedly requested the banks through letters to encash the FDRs. However, due to fund shortages, the banks are unable to issue pay orders even though the FDRs have matured.

As a result, the ongoing development work, including bearing expenditures, is becoming challenging, a DNCC official said.

Bank sources said they are trying to encash the FDRs and return the money to DNCC as early as possible.

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