New Age: Branches of banks throughout the country are left in great risk during the Eid holidays as the authorities failed to improve strongroom security as asked by Bangladesh Bank to secure money and valuables of clients.

Two major burglaries in bank branches in less than a week once again proved the fragility of banks’ security and heightened the concerns of depositors, prompting the central bank to repeat its instruction for precautionary steps given one-and-half year ago.

The frail security of bank branches even in the capital city were exposed by the startling robbery at Dhanmondi branch of Brac Bank in a weekend in January 2008 that saw 75 of 103 lockers emptied.

Robbers made off with gold ornaments and other valuables stored in the vault and safe deposit lockers between Thursday afternoon and Sunday morning in the first week of January 2008. The burglary took place cutting through the upper floor that houses a residential hotel.

Two months later, law enforcers arrested at least 10 people, including the suspected ringleader, and recovered 172 tolas of gold ornaments from jewellery shop believed to be linked with the gangsters.

Alarmed by the incident, first of its kind in the country’s banking history, the central bank framed safe deposit and insurance guidelines and asked the commercial banks to comply with those or risk losing branch licences. It also set deadlines for some major guidelines, issued within weeks of the Brac Bank gold heist. But most of commercial banks have failed to implement the central bank directives, citing problems including lack of space and unfavourable location of the existing branches, mostly housed in rented building, for improving the security system of lockers, the central bank sources said.

As a result, billions of money and valuables kept in 6,900 branches of the state-owned and private commercial banks across the country are not safe during the three-day Eid vacation, preceded by two-day weekend, they said.

Eastern Bank Limited managing director Ali Reza Iftekhar admitted that risk of robbery increases during long holidays. He said his bank has taken extra security measures for the long break.

Iftekhar, however, admitted that many banks could not insure their strong rooms against damages or robberies as per the central bank directives while some others were working to implement the central bank’s safety guidelines.

Agrani Bank, one of the state-owned commercial banks, has already taken measures in both rural and urban branches as per the central bank directives, said its managing director Abu Naser Bukhtear.

It has more than 866 branches, of which 461 in urban areas.

The central bank last week reminded the banks of special security measures to safeguard the money and valuables of the depositors. The reminder came a day after the burglary at a Chittagong branch of a private bank. Besides, the central bank requested the home ministry to arrange additional security measures for banks during the Eid holiday.

A home ministry official said they directed the police to deploy surveillance team in every station in both rural and urban areas. The police was asked to keep vigil over rural and semi-urban bank branches, which are seen more exposed to burglary than those in the heart of towns and cities.

Early this month, burglars stole Tk 1.62 crore from the branch of the National Bank at Kanaikhali old bus stand in Natore.

On September 12, robbers broke open a Raujan branch of United Commercial Banl Limited in Chittagong and took away Tk 34 lakh.

Bangladesh Bank, in its safe deposit guidelines, made insurance mandatory for bank lockers.

Commercial banks were asked to ensure adequate security and insurance coverage for locker operations. Locker holders would be apprised of the insurance policy in advance and maximum and minimum amounts to be covered under the policy, the central bank clarified in a circular

The insurance guidelines came amid uncertainty among the Brac Bank branch’s locker holders about getting their losses compensated duly.

New security guidelines required the banks to assess security agencies or individuals before appointing them at branches.

Locations and structures of the buildings that house bank branches must also be taken into consideration, the circular said.

The banks were to inform Bangladesh Bank within 30 days that their security arrangements comply with the guidelines. If they fail to meet compliances by that time, they would be given another 90 days, the circular said.

Failure to comply with the guidelines will lead to suspension of safe deposit facilities and even closure of bank branches, it warned.

But most of the banks cold-shouldered the guidelines due to lax monitoring and follow-up by the central bank, which also did not take any action against any bank so far for default, banking sources said.