Legal Notice To BB To Set Up Sharia Banking

Supreme Court lawyer Mo Mahmudul Hasan has sent a legal notice to the concerned parties to establish a separate Sharia banking department in Bangladesh Bank for proper supervision and control of Sharia-based banks and financial institutions.

In the legal notice sent on Tuesday (September 19) yesterday, the governor of Bangladesh Bank has been made a defendant.

Within 30 days of the legal notice, a separate Sharia Board should be formed in Bangladesh Bank. If not, a writ will be filed in the High Court as per Article 102 of the Constitution regarding the necessary steps.

The notice said that Bangladesh Bank is the only central bank of Bangladesh. Bangladesh Bank has been established as per the existing law of Bangladesh 'The Bangladesh Bank Order, 1972'. According to Section 7A (F) of the Act, one of the main functions of Bangladesh Bank is to control and supervise all banks and financial institutions. There are two types of banking systems in Bangladesh, one is interest-based conventional banking, and the other is Islamic Shariah-based banking.

According to various sources, there are ten full-fledged Islamic Sharia-based banks in Bangladesh. Besides, 23 Islamic banking branches of 11 conventional commercial banks and 511 Islamic banking windows of 13 conventional commercial banks provide Islamic Shariah-based financial services.

The notice also said that there are many complaints from the people of Bangladesh and banking experts that Islamic Sharia-based banks and financial institutions in Bangladesh are not properly following Islamic Sharia. They are mainly trading on the religious sentiments of the Muslim population of Bangladesh. In this regard, Bangladesh Bank has failed to properly supervise and control these Islamic Sharia-based banks and financial institutions.

It has also been said, according to Section 7A (F) of 'The Bangladesh Bank Order, 1972', that one of the main functions of Bangladesh Bank is to control and supervise all banks and financial institutions. It is very unfortunate that Bangladesh Bank does not have any Sharia banking department to properly supervise and regulate the Islamic Sharia-based banks and financial institutions in Bangladesh. Besides, Bangladesh Bank has no Shariah Board to verify the products of Shariah-based banks and financial institutions. As a result, Bangladesh Bank is unable to play any role in the control and supervision of Shariah-based banks and financial institutions in this country and Bangladesh Bank has failed to fulfill its legal duties.

In this situation, according to The Bangladesh Bank Order, 1972, Bangladesh Bank must take necessary steps to fulfill its legal responsibilities. In this case, a separate Sharia banking department should be established in Bangladesh Bank immediately for the control and supervision of Sharia-based banks and financial institutions in the country. Besides, Bangladesh Bank should establish its own Shariah Board to properly review various products of Shariah-based banks and financial institutions of the country.