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Such failure has created panic among individuals, the government and private entities.

The central bank has recently taken a decision to liquidate People’s Leasing and Financial Services (PLFS), an NBFI, due to the deterioration of its financial health and severe liquidity crunch. A significant amount of government and corporate funds has been stuck with PLFS.

The Farmers Bank, which has recently been named Padma Bank, also faced severe cash crunch and failed to pay back the depositors’ money last year because of financial scam. Besides, the majority of banks are now offering high interest rate to attract depositors to mitigate their liquidity crunch.

In many cases, some banks and NBFIs lure the government, semi-government organisations and corporations to keep their deposit with them, promising high interest rate, the letter said.

The ministry asked its wings not to be attracted by that kind of offer and keep their funds with institutions which have strong financial base.