A ruling-party lawmaker urges the government to withdraw Tk1000 and Tk500 banknotes from circulation as a way of bringing undeclared cash into the banking system, curb money laundering and reduce the flow of black money.
Participating in general discussion on the proposed national budget for FY2026-27 during the 17th sitting of the second session of the 13th Jatiya Sangsad on Sunday, A M Mahbub Uddin Khokon MP said a cache of cash remained outside the formal banking system, including money held by people who left the country.
He proposes giving holders of Tk1000 and Tk500 notes one to two months to deposit the currency in banks before the mopping-up drive.
Mr Khokon also suggests allowing those unable to explain the legitimate source of their funds to legalise the money by paying a tax of 20-25 per cent.
Such a measure, he thinks, would boost bank deposits, improve liquidity and encourage investment.
The lawmaker also calls for consolidating the banking sector, arguing that Bangladesh has more banks than its economy needs.
"Being elected an MP should not mean getting a bank, and becoming a political leader should not mean owning a leasing company. This culture must end," he told parliament.
He says taxpayers' money is being used to keep weak banks afloat and urges the government to reduce the number of banks to strengthen the sector and improve efficiencies.
Referring to capital flight, Mr Khokon notes that successive governments had promised since Bangladesh's independence to bring back laundered money from abroad, but little had been achieved.
"Money goes wherever it feels safe," he says, adding that alongside efforts to repatriate illicitly transferred funds, the government should create a financial and legal environment that encourages people to keep their wealth in the country.
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