Banks losing documents

Banks in Bangladesh have been losing documents submitted by clients despite assurances about security of transactions and savings.

The list of loss ranges from cheques, demand drafts, documents on Fixed Deposit Receipt (FDR), SDR, Mudaraba Term Deposit Receipt (MTDR), pay orders and Letter of Credit documents for export and import.

Various branches of at least 14 banks in Dhaka and outside have reported losing such documents in the past two months.

There has been an attempt to cash a stolen cheque while others sent from abroad have ‘disappeared’ even after reaching the post office.

As these irregularities surge, distressed clients believe a group of fraudsters are out to cash on the negligence of sloppy bank officials.

According to the Bangladesh Bank, a bank must take responsibility if a document is stolen from its custody.

At least six banks have lost documents in October, according to a bdnews24.com investigation.

In each case, the erring banks have written to all other banks warning them about the possibility of these ‘lost documents’ being used for encashment.

Social Islami Bank Ltd (SIBL) have lost two MTDRs, Dhaka Bank’s general division seven cheque books of as many clients, one MTDR has gone missing from Union Bank, two pay orders from South Bangla Agricultural Bank, two export loan documents from NCC Bank and six demand drafts, seven pay orders and documents for 25 FDRs were lost from the Rupali Bank.

The state of abysmal security came into focus after 55 cheques were reported stolen from a drawer of the clearing desk at Sonali Bank’s branch in Dhaka’s Lalmatia on Oct 26.

An unidentified man later tried to cash one of these lost cheques at Standard Chartered Bank but fled when officials were called the one who issued it.

A senior official from the state-owned bank’s Lalmatia branch was removed for negligence and a four-member committee formed to probe the incident.

Earlier in September, FDR documents on Tk 800,000 went missing from the principal branch of NRB Commercial Bank, another two worth Tk 200,000 each from Midland Bank, one for Tk 500,000 from South Bangla Agricultural Bank, documents of eight FDR totaling more than Tk 3.2 million from various branches of Basic Bank and another on Tk 4.6 million has disappeared from the Union Bank.

A pay order for Tk 112,500 was lost from Farmer’s Bank that very month. Foreign Habib Bank lost a pay order for Tk 399,000, with Rupali Bank losing two demand drafts, 14 FDRs and one FDR document.

There are also reports that two cheques and one SDR documents were lost from the Jamalpur, Meherpur and Lakshmipur branches of the Janata Bank.

The Agrani Bank at this time also lost several LC documents for export.

Rupali Bank’s branch in Noyatola lost an FDR document for client Tofazzal Hossain.

“I’m afraid because they lost my papers. Even though the bank said they’ll give me a duplicate document, I cant feel secure until they do.”

Deputy General Manager of Bangladesh at Bangladesh Bank’s Financial Integrity and Customer Services Department (FICSD), Swapan Kumar Roy said: “The bank is liable if a document goes missing from its custody. The client cannot be compromised in any way. We’ve to check why documents were going missing.”

Kumar mentioned how a cheque sent from abroad was lost even after it was received at a Bangladesh post office.

Clients who suffer from the loss do not get their money on time and has to face more trouble over getting new documents made as it takes time to get necessary approval from the bank’s head office.

There are allegations that several erring banks have directed clients to file general diaries with the police themselves.

Some whose cheques went missing have to get a written document that says ‘cheque not resolved’ from the bank that issued it. Bank’s in case of missing FDR documents require an attested photocopy of the form used to open the FDRs.

But Rupali Bank Managing Director M Farid Uddin claimed the bank did nothing to harass clients.

“The branch’s second officer is in charge of these regular documents. He or she takes necessary measures if they are lost.”

He said each case was unique and no specific system was at place for addressing such an incident.

“Usually a GD is filed. Then measures are taken in line with the situation. We try to provide payment services as fast as we can in case of cheques, DDs and pay orders.”