The government has decided to cancel the remaining term of contractual appointments for the Managing Directors (MDs) and Chief Executive Officers (CEOs) of state-owned Janata Bank PLC and Rupali Bank PLC.

All scheduled banks and stock markets across the country are open today, Saturday (October 17), with standard trading and banking transactions operating under normal business hours as part of an adjustment for the upcoming five-day Durga Puja holiday.

Bangladesh received $9.997 billion in remittances between July 1 and October 13 of the current fiscal year, marking a 12.9 percent increase compared to the $8.856 billion recorded during the corresponding period of the previous fiscal year.

The country's non-performing loan (NPL) crisis is assuming alarming proportions, with nearly 33 out of every 100 taka disbursed by banks now classified as defaulted.

Bangladesh Bank has issued a stern warning to all commercial banks across the country, instructing them to strictly deduct Tax Deducted at Source (TDS) at prescribed rates from the interest or profit paid to depositors, and to deposit the collected revenue into the government treasury within stipulated deadlines. The central bank’s Banking Regulation and Policy Department issued a circular regarding this directive on Monday, August 10. Key Reasons Behind the WarningAccording to the central bank circular, recent inspections revealed irregularities and errors by several banks in deducting the correct rates of source tax on deposit interest or profits and failing to deposit them into the government treasury on time. Revenue Loss: The central bank noted that failing to deduct the mandated tax rates leads to significant government revenue shortfalls. Audit Complications: These discrepancies create severe complexities during subsequent tax adjustments and financial audits. Core Directives Issued by Bangladesh BankMandatory Deductions: In accordance with Section 102 of the Income Tax Act, 2023, banks must deduct source tax at applicable rates based on customer categories from interest or profits paid on savings, fixed, term, or any other type of deposits. Higher Penalties for Non-Compliance: Under Section 142 of the Income Tax Act, 2023, if a customer fails to submit proof of return submission (PSR), banks are legally bound to deduct source tax at a rate 50 percent higher than the standard rate. Prohibition on Fund Retention: The circular explicitly states that deducted source taxes must not, under any circumstances, be held back in General Ledger (GL) accounts or any other internal accounts past the designated deadlines. Funds must reach the state treasury on time. Record Keeping and Compliance: Banks must properly maintain all records of tax deductions, prepare necessary statements, and ensure submission of challan copies to relevant authorities while fully complying with the Income Tax Act, 2023, and Income Tax Rules, 2023. Stricter Deadlines for Depositing Tax to the State TreasuryUnder the Source Tax Rules, 2023, Bangladesh Bank has outlined precise timelines for transferring collected revenue: July to May: For taxes deducted during any month from July through May, the funds must be deposited into the government treasury within two weeks following the end of that respective month. June 1 to June 20: Taxes deducted between the 1st and 20th of June must be deposited within the next seven days. June 21 to June 30: For taxes deducted from the 21st until the final day of June, funds must be deposited into the government treasury on the very next day. The directive was issued by the Banking Regulation and Policy Department under the powers conferred by Section 45 of the Bank Company Act, 1991.