Banks told to supply coins

Bangladesh Bank on Monday directed the commercial banks to raise the supply of coins in the market.

The directives came from a meeting held at Bangladesh Bank headquarters in the city’s Motijheel, the central bank’s Currency Officer Saiful Islam Khan told reporters.

An official who attended the meeting said that the central bank in an inquiry recently found that the banks were not supplying coins despite demand in the market.

Though it is mandatory for the commercial banks to receive 1.5 percent currency as coins out of the total currency demand while taking taka from the central bank, the commercial banks are now not willing to meet the obligation.

Currency Officer Khan told bdnews24.com: “An additional amount of coins remains idle in Bangladesh Bank vault. We can supply coins as much as the banks ask for.”

There is a shortage of coins and currency notes of low denominations in the market. As a result, transaction is often done with torn banknotes.

The central bank held Monday’s meeting as a part of its monthly get-together with the commercial banks on distorted notes and coin supply.

The official said the guideline for changing torn banknotes was recently updated and that the commercial banks were directed to properly it.

In its inquiry, Bangladesh Bank also found that the banks were not following the provision of opening special counter and signboard in their branches for changing torn banknotes.

Representatives of all banks attended the meeting, with its Executive Director Subhankar Saha in the chair.