DHAKA, Aug 17, 2026 (BSS) - Bangladesh Bank (BB) has instructed finance companies to ensure withdrawal of cases filed by their customers against the government, Bangladesh Bank and the concerned finance companies before considering applications for policy support.

In a circular issued today, the central bank said the measure was aimed at restoring business operations of financially distressed institutions, bringing them back to financial health, creating employment and ensuring continued economic growth.

The circular, issued by the Financial Companies Regulation and Policy Department of BB, said various types of policy support are being provided to financially distressed customers through finance companies. 

However, it has been observed that some customers receive policy support from Bangladesh Bank on one hand while continuing litigation, including writ petitions, against the government, Bangladesh Bank and the concerned finance companies on the other, creating legal complications in the financial sector.

Against this backdrop, finance companies have been instructed to consider applications for policy support from customers only after withdrawal of such pending cases, subject to certain conditions.

According to the circular, while reviewing a customer's application, the finance company must arrange withdrawal of cases in light of the policy support approved through an 'In-Principle Sanction Letter'.

The customer will also have to submit an affidavit at the time of withdrawal of the case, clearly stating that there is no pending case filed against the government, Bangladesh Bank or the concerned finance company.

The central bank further said that after submission of the affidavit, finance companies will not be allowed to make any changes to the terms of the policy support or concessions granted to the customer.

The finance companies will have to implement the policy support and concessions in accordance with the approved sanction and relevant Bangladesh Bank policies.

Bangladesh Bank said the directive was issued under the powers vested in it by Section 41 of the Finance Company Act, 2023, and would take effect immediately.