Dhaka, August 11- In response to the ongoing political situation in the country, the Central Bank of Bangladesh has imposed strict restrictions on cash withdrawals from banks. On Saturday, the Central Bank instructed the Managing Directors of all banks to enforce a withdrawal limit of no more than two lakh rupees per customer. This directive aims to prevent large-scale cash withdrawals that could destabilize the banking sector during a period of uncertainty.

However, while cash withdrawals have been capped, the Central Bank clarified that there are no restrictions on digital transactions. Customers can still transfer any amount of money electronically, though withdrawals exceeding two lakh rupees through cheques are prohibited.

The Central Bank also instructed banks to halt any withdrawal through cheques if suspicious activity is detected. This measure is part of a broader effort to ensure financial stability and prevent the misuse of funds during the current situation.

These instructions follow an earlier directive issued on Thursday, coinciding with the swearing-in of an interim government. On that day, the Bangladesh Bank had limited cash withdrawals to one lakh rupees per customer, citing security concerns.

Banking officials noted that the political shift on August 5 led to an uptick in cash withdrawals by politicians, businessmen, and various officials, prompting the Central Bank to tighten its withdrawal policies further.

In addition, the Bangladesh Financial Intelligence Unit (BFIU) has instructed all commercial banks to exercise heightened vigilance in monitoring transactions involving politically exposed persons. This directive was issued during a meeting with the chief anti-money laundering officers of the banks on Thursday, underscoring the need for caution in handling financial transactions during this sensitive period.

These measures reflect the Central Bank's proactive approach to safeguarding the financial system amidst the country's political changes, ensuring that banks remain stable and secure.