BNP Member of Parliament and senior lawyer AM Mahbub Uddin Khokon has proposed to temporarily cancel 500 and 1000 rupee notes to bring the unaccounted cash in the country’s homes under the banking system.
He made this proposal while participating in the general discussion on the proposed budget for the fiscal year 2026-27 in the National Parliament on Sunday. At the same time, he urged to reduce the number of banks in the country and ensure the safety of the depositors.
Mahbub Uddin Khokon, Member of Parliament of Noakhali-1 Constituency, highlighted the fact that people’s confidence in the banking sector of the country has decreased, and said, ‘As the condition of the banks is fragile, common people are now saving cash at home instead of keeping money in banks.’
He claimed that in the past, those who wanted to smuggle money out of the country or were associated with the previous dictatorial regime, also left huge amounts of cash with themselves. As a result, a huge amount of money in the country has gone out of the core banking system, causing a liquidity crisis in the banking sector.
Mahbub Uddin Khokon, proposing to cancel the big notes for a certain period to stimulate the economy and meet the budget deficit, said, “If the government announces the temporary cancellation of the 500 and 1000 rupee notes and gives two months to deposit them in the banks, then there will be huge benefits.” Those who do not account for this amount in their tax file will get a chance to legalize it by paying 25 percent tax.
According to him, if this step is implemented, the budget deficit of the government will be reduced. Cash supply or liquidity in the banking sector will increase. The overall financial sector of the country will be strengthened and it will be possible to invest that money in productive sectors.
Questioning the number of banks currently operating in the country, this member of parliament said that Bangladesh does not need so many banks. Maximum security of deposits should be ensured by reducing the number of banks.
Expressing his anger in the parliament, he said, ‘There is no money, the banks have been looted. What is the need for so many banks in Bangladesh? An MP needs a bank, a leader needs a leasing company – these must be closed. The bank’s deficit has to be met with people’s tax money. Therefore, the safety of people’s deposits must be ensured first.
Identifying money laundering as one of the major economic problems of the country, this lawyer said that only political promises have been made to bring back the money smuggled abroad since independence, but in reality not a single money has been brought back. Because once the money goes out, it is extremely difficult to get it back due to complex international legal processes.
As a solution to money laundering, he insisted on a radical change in the entire financial system, saying, ‘Money also has its own nature. People keep money where they feel safe. We have to create such an environment, so that the people of the country are interested in investing in the country instead of sending money abroad. People keep money with confidence in Singapore, Dubai, Canada and Thailand because they have managed to create that safe environment.’
Mahbub Uddin Khokon highlighted the development of law and order situation and removal of unemployment as one of the main challenges of implementing the first budget of the new BNP government.
