Bangladesh Nationalist Party lawmaker A M Mahbub Uddin Khokon has called on the government to withdraw Tk 1,000 and Tk 500 banknotes from circulation, saying that the move would help bring undeclared cash back into the banking system, curb money laundering and tackle the flow of black money.
Speaking during the general discussion on the proposed national budget for the financial year 2026–27 on the 17th sitting of the second session of the 13th Jatiya Sangsad on Sunday, Khokon said large amounts of cash were currently being kept outside the formal banking system, including by individuals who had left the country.
He proposed giving holders of Tk 1,000 and Tk 500 notes between one and two months to deposit them with banks.
Khokon said that individuals unable to demonstrate the legitimate source of their funds should be allowed to legalise their money by paying a tax of between 20 and 25 per cent.
He said that this would significantly increase bank deposits, boost investment and improve liquidity across the economy.
The lawmaker also called for a reduction in the number of banks operating in Bangladesh, saying the country had more banks than required.
‘Being elected an MP should not mean getting a bank, and becoming a political leader should not mean owning a leasing company. This culture must end,’ he told JS.
The lawmaker said that public funds were being used to keep weak banks afloat and urged the government to consolidate the banking sector to improve its efficiency.
Referring to capital flight, Khokon said that successive governments had pledged to repatriate money laundered abroad since Bangladesh’s independence, but little progress had been made.
‘Money goes wherever it feels safe,’ he said, stressing that alongside efforts to recover illicitly transferred funds, the government should create a financial and legal environment that encourages people to retain their wealth in Bangladesh.
Commenting on the proposed budget, Khokon said it had been formulated amid challenging economic conditions. He welcomed provisions for social safety net programmes, family cards, farmer cards and initiatives aimed at youth training and employment.
However, he argued that job creation should receive the highest priority in order to improve the country’s law and order situation.
