The government has dropped a controversial clause from the draft Bank Resolution (Amendment) Act, 2026, that created a pathway for former shareholders of underperforming banks to reclaim their stakes.
According to the Cabinet Division, the draft Act was approved without the new section 18A, which had drawn widespread domestic and international criticism.
At its 16th meeting at the Secretariat yesterday, the cabinet, chaired by Prime Minister Tarique Rahman, also gave in-principle approval to the draft National Human Rights Commission Act, 2026, and approved the Visa Policy 2026.
Added to the Bank Resolution Act in April, the provision allowed former shareholders or Bangladesh Bank-approved persons to seek ownership of a bank brought under resolution or merger. It opened a pathway for former owners of the five banks merged into Sammilito Islami Bank to seek control again.
Applicants were required to repay government and Bangladesh Bank funds, inject fresh capital, settle legitimate claims and liabilities, compensate affected parties, and promise to strengthen governance and risk management. They also had to pay 7.5 percent of government or Bangladesh Bank funds upfront, with the remaining 92.5 percent repayable within two years at 10 percent simple interest.
Bangladesh Bank was required to obtain government approval before granting permission and monitor the bank for two years. If the conditions were breached, it could cancel the approval and take action under relevant laws.
The Cabinet Division said the section was dropped because no individual or institution had applied to comply with all the conditions set out under it.
The amendment would be placed before parliament subject to vetting by the Legislative and Parliamentary Affairs Division.
During the interim government’s tenure, a regulatory framework was introduced to facilitate the merger of five troubled banks --First Security Islami, Social Islami, Global Islami, Union and EXIM Bank -- and bar those responsible for weakening the institutions from regaining ownership.
Regarding the controversy, the Cabinet Division said the clause had been added considering the government’s financial liabilities, customers’ interests and the realities of the banking sector.
The draft National Human Rights Commission Act, 2026 would empower the commission to issue interim orders, ensure effective investigations and provide immediate security to victims, according to the Cabinet Division.
It also provides for a National Preventive Mechanism unit to prevent custodial torture, death or disappearance in accordance with the UN’s Optional Protocol to the Convention against Torture.
During the interim government, the National Human Rights Commission Ordinance, 2026 was formulated by amending the National Human Rights Commission Act, 2009. As the BNP-led government did not turn the ordinance into law, it was cancelled.
The fresh draft provides for a commission comprising a chairperson and four commissioners, at least one of whom must be a woman. It also gives priority to qualified candidates from ethnic minorities and underprivileged communities based on recommendations from the search committee.
The search committee must include university professors, civil society representatives, and representatives from ethnic minorities or underprivileged communities.
The complaint submission process has also been simplified and the commission’s scope of work clarified, according to the Cabinet Division.
Under the Visa Policy 2026, foreign business visitors would no longer be eligible for visa extensions of up to five years. Extensions would instead be capped at two years.
They would be allowed to stay for up to 90 days on each visit under a multiple-entry business visa valid for up to one year. Employment in Bangladesh would remain prohibited.
A six-page summary of the proposed changes, prepared for a cabinet meeting and obtained by The Daily Star, says the number of visa categories would rise from 33 to 34.
Two new categories, medical tourism (MT) and medical attendants (MA), would be introduced. The existing W category, covering work-and-holiday, development and volunteer programmes under bilateral or multilateral arrangements, would be dropped.
Under the 2006 policy, business visas could be extended for three years under specified conditions. Those making repeated legitimate business visits could receive extensions for up to five years.
The new policy would also restructure foreign employment visas. The existing E category would be replaced by E1 for development partners, E2 for employment in Bangladesh and E3 for experts and technical personnel. Corresponding dependent categories, FE1, FE2 and FE3, would also be introduced.
The NGO visa category would be split into N1 for foreigners working in registered NGOs and N2 for emergency humanitarian services and volunteer programmes.
For airline crew members, the maximum stay in certain cases would rise from seven days to 15 days. They would also be allowed to extend their visas for three to five years.
The policy would introduce FBN (Family of Bangladeshi Nationals) for family members of Bangladeshi nationals and foreign nationals of Bangladeshi origin up to the third generation. FR (dependent family members of R-category researchers) and FS (dependent family members of S-category students) would be replaced by FSR (dependent family members of S- and R-category visa holders) for dependants of students and researchers.
The policy would also change provisions for journalists. Under the J (journalist) category, it would remove the existing provision allowing the Department of Immigration and Passports to extend a journalist’s visa, with multiple-entry facilities, for the duration of work permission or up to three years, whichever is shorter, subject to the required recommendations and clearances.
For dependent family members of missionaries and religious leaders under the FM category, employment in Bangladesh would be prohibited. Violations could lead to visa cancellation and legal action.
