India, April 8 -- Former Bangladesh premier Sheikh Hasina's presence in India remains a key sticking point in bilateral relations and Dhaka will reiterate its request for her extradition while ensuring that this issue doesn't affect the ongoing process of normalising ties after a period of unprecedented strains, people familiar with the matter said on Wednesday.

The people, who spoke on condition of anonymity, made it clear that Hasina's Awami League party - which was barred from contesting this year's general election swept by the Bangladesh Nationalist Party (BNP) - has a future in the country's political setup but without her presence, and provided it acknowledges the mistakes it committed while in power.

Hasina, 78, has lived in Ind...