BB rejects rural savings bank proposalNazmul Ahsan
The Bangladesh Bank has rejected a proposal for the establishment of a rural savings bank as its goal said to be boosting the rural economy could not be achieved after other such specialised banks have faltered.
The central bank conveyed its opinion on the proposal to the finance ministry on Wednesday. The LGRD and cooperative ministry was pursuing the matter with the finance ministry, a finance ministry official said.
The proposed bank, according to the draft law, wanting to remain outside the purview of the Bank Company (Amendment) Act 2013 will harm the banking sector, the central bank said.
‘Banking institutions such as Ansar-VDP Bank, Expatriates’ Welfare Bank and Employment Bank have so far failed to achieve their goals,’ the Bangladesh Bank said. ‘An approval for the proposed rural savings bank will be unwise.’
The central bank also said that the proposed bank would need licensing with the central bank for the banking activities the draft law proposed.
The draft of the Rural Savings Bank Bill 2013 envisages trading, deposit collection, lending, import and export functions, dealing with foreign exchange and other traditional banking activities.
A high central bank official said that a new bank would only bring about disaster in the already over-saturated banking sector where some new banks are struggling for survival.
‘We will convey our stand on the proposal to the LGRD and cooperatives ministry,” a finance official told New Age on Thursday.
The draft law of the proposed bank says that its authorised capital would be Tk 1,000 crore and the paid-up capital Tk 600 crore to be owned by the government.
Members of the Rural Development Division project ‘One House, One Farm’ would own the remaining capital. The project has 40,527 villages under its coverage.
The proposed bank, according to the draft, would have branches in rural areas, especially outside municipal areas.
The bank’s board of directors would be composed of 17 members — seven nominated from among the bank’s shareholders and others from among the bureaucrats. The rural development secretary would be the chairman of the proposed bank.
A high Rural Development Division official said they had got a go-ahead from top policy-makers of the government and that the opinion of the central bank would be of no use if the government decides to set up the bank by enacting the law.
comments powered by Disqus
Central leaders of the Bangladesh Nationalist Party who recently visited the party’s organisational districts witnessed deep rivalries among local leaders over nomination for contesting the next general elections. The leaders think the disputes should be settled quickly... Full story
The Election Commission is mulling framing an electoral code of conduct for the 10th parliamentary polls in light with the Indian electoral code of conduct if the national elections are finally held keeping a political party in power. The commission is scrutinising the Indian electoral code... Full story
The Bangladesh Bank has rejected a proposal for the establishment of a rural savings bank as its goal said to be boosting the rural economy could not be achieved after other such specialised banks have faltered. The central bank conveyed its opinion on the proposal to the finance ministry on Wednesday. Full story
Three workers were electrocuted in the capital’s Sutrapur and Mirpur on Friday. At Sutrapur, two workers were killed as an elevator of an under-construction building collapsed early Friday. The deceased were identified as Habibur Rahman, 25, and Md Nawab, 26. Full story
UN secretary general Ban Ki-moon is likely to meet prime minister Sheikh Hasina on September 28 on the sidelines of the 68th UN general assembly session in New York. The meeting is considered important before the upcoming parliamentary elections in Bangladesh as the UN chief is... Full story
The prime minister, Sheikh Hasina, on Friday said the Awami League would pick candidates for contesting the next general elections on the basis of the opinions of grassroots leaders as well as survey reports of the party. ‘I do not want to impose anything on... Full story
Four Pakistani sisters killed themselves after a row with their father who could not afford dowries for them to get married, officials said on Friday. The women threw themselves into a canal after arguing with their father in Mailsi, a town in the rural southern part of... Full story
Suspected al-Qaeda fighters killed at least 54 soldiers and police in a wave of dawn attacks Friday, the deadliest day for Yemeni security forces since jihadist strongholds fell last year. The militant assaults came in the lawless southern province of Shabwa, a bastion of al-Qaeda in the Arabian... Full story
Syria has begun supplying details of its chemical arsenal, the world’s chemical weapons watchdog said on Friday, as rebels agreed a truce with jihadists in a key border town. A senior Syrian official, meanwhile, said Damascus wanted a ceasefire in the 30-month war, which has reportedly... Full story
The movement of condemned war crimes convict Abdul Quader Molla was restricted to a room in the jail for security reason, a prison official said. Earlier, Quader was allowed to go out of the room while he was employed on his duty as a gardener. Full story
Children as young as eight are being blackmailed into performing sex acts live on webcams, causing some of them to self-harm or even commit suicide, a British watchdog warned on Friday. The Child Exploitation and Online Protection Centre said it had conducted 12 investigations over the last two years... Full story
Officials of the Bangladesh Inland Water Transport Authority and the Bangladesh Inland Water Transport Corporation blamed each other for the disruption of ferry services on Mawa-Charjanajat and Paturia-Daulatdia routes. The corporation officials said that navigability on... Full story
The government is going to set up Islamic Arabic University to bring all madrassahs degrees and curriculums equivalent to bachelor and master’s level under a single institution. The parliament on Wednesday passed the Islami Arabic University Bill 2013 in this direction. Full story
Dictionaries, the best-selling publications of the Bangla Academy and the most popular books of their kind in the country, are out of stock and are now only available for much higher prices or in photocopy at bookshops at Nilkhet. Full story
Taliban militants in northeast Afghanistan killed 18 police in an ambush, the government said Friday, as security forces struggle against the rebels with decreasing assistance from international troops. The police convoy was caught in a firefight on Wednesday in the remote province of Badakhshan when officers were returning from an anti-insurgent operation. Full story
Thirteen people — including a toddler — were wounded in a gang shooting in president Barack Obama’s adopted hometown Chicago which has been struggling to stem violent crime, the police said Friday. The bloodshed Thursday night apparently came in a drive-by shooting targeting people playing basketball, the... Full story
The police recovered the body of a young man from a pond at Baghadoba village in Melandaha upazila on Friday. The deceased was identified as Sohagh, 35, son of Abdur Rashid, a resident of the upazila. The police sources said being informed, the police recovered the body of Sohagh, kept in a sack, from a pond, one... Full story