Hundreds of depositors staged a protest outside the Bangladesh Bank Chattogram office on Monday, demanding the withdrawal of a decision to reduce profit payouts on deposits held at five Shariah-based banks.

The demonstrators alleged that the central bank’s decision has left them unable to withdraw their savings for the past two years, causing severe financial hardship and affecting their ability to meet medical, educational, and daily living expenses.

Holding banners and placards, the protesters chanted slogans such as “No to Haircut” and “Is our deposit safe?”, expressing frustration over what they described as an unfair reduction in their returns.

According to the protesters, Bangladesh Bank issued a memorandum on January 21 introducing a policy that cuts the profits earned on deposits over the past two years at the five Islamic banks, while offering a fixed 4% special return instead. Depositors have labeled the measure a “haircut,” calling it a breach of contract and demanding its cancellation.

The protesters presented five key demands, including restoring full contractual profit payments, resuming normal banking operations at the affected banks, providing government support to ease liquidity shortages, paying matured fixed deposits and savings schemes according to contract terms, and reinstating the original profit rates.

In a memorandum addressed to the Prime Minister’s Office, the depositors also criticized the introduction of different profit rates for the five banks under the merged Combined Islami Bank PLC, saying the decision was imposed without consultation and has affected around 75 lakh families, involving nearly 30 million people.

After the rally, participants marched from the Bangladesh Bank office to New Market via Kotwali intersection.

A representative of the protesters said Bangladesh Bank officials had assured them that their demands would be discussed, adding that the movement would continue until the haircut policy is withdrawn.

Kotwali Police Inspector (Investigation) Iqbal Hossain said the demonstration remained peaceful and no untoward incidents were reported.