Depositors of the five Islamic banks undergoing the merger process are set to get their money back, with the refund process expected to start as early as this week, according to Bangladesh Bank (BB) sources.

An assistant director conditioning anonymity told UNB on Sunday that under the management of the Bangladesh Bank's Deposit Insurance Fund, each eligible depositor will initially receive up to Tk2 lakh per bank account.

The five troubled-Shariah banks are First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank.

These banks are being acquired by the newly formed 'Sammilito Islami Bank PLC,' which has already started operation.

Bangladesh Bank is currently finalizing a scheme detailing the process and eligibility criteria for the refunds, which will be published before the disbursement begins.

Central Bank sources indicate that customers with account balances up to Tk2.0 lakh can withdraw their entire amount if they wish. For those with balances exceeding Tk2.0 lakh, they will receive a maximum of Tk2.0 lakh now.

The fate of the remaining balance will be decided later by the Central Bank, and a new interest rate will be fixed for that remaining deposit amount.

The primary aim of this initial step is to address the panic among small customers and meet their urgent financial needs. While all 75 lakh depositors of the five banks will eventually get all their money back, the immediate refund is capped at Tk2.0 lakh per account.

To receive the funds, customers must meet several conditions set by Bangladesh Bank. Such as

1. Single Account Limit (Per Bank): A citizen holding multiple accounts in one of the merged banks will only be eligible for a refund against a single account, verified using their National ID (NID).

2. Valid NID: Accounts must have been opened using a valid National ID card.

3.Multiple Banks: A citizen holding one account in each of the five merged banks will be eligible to receive BDT 2 lakh against each of the five accounts.

4. Loan Adjustment: Customers with outstanding loans against their deposit will not receive the refund until the loan is adjusted.

5. Interest Rate: The interest rate on the remaining deposit balance (over BDT 2 lakh) will be newly determined.

Bangladesh Bank's preliminary calculations estimate the total cost to pay out the initial customer refunds will be around Tk 12,000 crore.

The paid-up capital of the newly established Sammilito Islami Bank has been set at Tk35,000 crore.

The Government is contributing Tk20,000 crore (which has already been released).

The Deposit Insurance Fund will provide the remaining Tk15,000 crore as capital.

The total authorized capital has been fixed at BDT 40,000 crore.

To strengthen the foundation of the unified bank, the Central Bank is undertaking several initiatives:

Appointing skilled, experienced, and honest officers for top-tier management positions, including the Managing Director.

Upgrading the bank's operational policies to meet international standards to build customer confidence.