Bangladesh Bank has further relaxed cash withdrawal rules for customers of the country’s newly merged Islamic bank, allowing eligible depositors to withdraw up to Tk 1 million for family medical expenses and other emergency needs.

The decision was approved at a meeting of the central bank’s Board of Directors on Wednesday (July 29), chaired by Governor Mostakur Rahman.

The revised policy applies to customers of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank, which have been merged to form Sommilito Islami Bank.

Previously, the special withdrawal scheme allowed customers to access funds only for their own medical treatment. Under the revised rules, withdrawals will also be permitted for the medical treatment of immediate family members including parents, children, siblings, and spouses as well as for other urgent personal or family needs.

A Bangladesh Bank official said the changes were introduced after many customers sought access to their deposits for emergencies beyond personal healthcare, such as family medical expenses, weddings, and other pressing financial obligations.

According to the central bank, the government and Bangladesh Bank have undertaken several measures to repay depositors of the merged bank. Sommilito Islami Bank has been assigned a paid-up capital of Tk 350 billion, of which the government has contributed Tk 200 billion. The remaining Tk 150 billion will be converted into shares for depositors.

In addition, Tk 120 billion from the Deposit Insurance Fund is being used to reimburse deposits of up to Tk 200,000. So far, 822,000 customers have received a total of Tk 38.87 billion under the scheme, including nearly 350,000 customers of First Security Islami Bank, who have received around Tk 16 billion.

Bangladesh Bank data show that, as of the end of December, the five banks had outstanding loans totaling Tk 1.95 trillion, backed by collateral worth only Tk 479 billion, or 24.56% of the loan portfolio. Non-performing loans currently stand at Tk 1.705 trillion, representing 87.43% of total loans.

EXIM Bank was previously controlled by businessman Nazrul Islam Mazumder, while the other four banks were under the control of the S. Alam Group during the previous Awami League administration. The banks later fell into financial distress due to widespread irregularities and unsecured lending, prompting the interim government to merge them into Sommilito Islami Bank.