How can banks directly distribute their products?
Advancing banks’ CSR activities in addition to core responsibilities such as price stabilization and financial sector supervision; Development of loan programs in agriculture SME, renewable energy and women entrepreneurship sector, among the people deprived of banking services, mobile banking and other financial services, opening of bank accounts for farmers and poor people for 10 rupees has made the way of bringing transparency in the payment of agricultural subsidies and social security allowances of the government much smoother. banking service
A new banding strategy has been undertaken to transform the central bank into a more humane, participatory and philanthropic character so that economic growth is pro-poor and sustainable and equity-promoting, i.e. so that the benefits of growth reach the neglected larger sections of the society. For the past four years, Bangladesh Bank has been working relentlessly in providing financial services to all the deprived classes, including the poor, landless, small farmers, small traders, poor women. Inclusive finance, in particular, is already reaping the benefits of achieving significant growth in the agricultural sector, advancing the SME sector and increasing the flow of credit to the poorer sections of society.
As a result of all these financial inclusion initiatives taken in the last four years, increased production is contributing to stable commodity prices by meeting increasing demand. It is expected that the economy of the country will be more participatory, sustainable and people-oriented in the coming days in the business and entrepreneur-friendly environment that is being created in these four years. Recently, a large section of the backward poor people of the country, starting from farmers, laborers, fishermen, laborers, rickshaw pullers, vegetable sellers, have been included in the banking sector.
Other Financial Services Inclusion Measures:
Apart from opening farmers’ accounts at Rs 10, disbursement of money to beneficiaries of various social security schemes of the government, special accounts for unemployed youth/young women, destitute, freedom fighters, destitute persons receiving grants from Hindu Kalyan Trust, micro life insurance beneficiaries and schools. About 35 lakh more accounts have been opened for students. By opening these accounts there has been a major financial inclusion in the country. That is, it has been possible to bring a large number of people under banking services.
Under the Social Security Scheme, old age allowance, indigent disabled allowance and widow and widower allowance payment process is made easier, hassle-free and transparent with the aim of ensuring transparency by the beneficiaries against the allowance receipt book containing National Identity Card and Pension Payment Order (PPO) number. You can open a bank account in their name. As of January 17, 2013, 26 lakh 34 thousand such accounts have been opened.
* Freedom fighters can open a bank account by depositing 10 taka against the national identity card and receipt book of freedom fighter allowance through bank account. As of January 17, 2013, 1 lakh 10 thousand such accounts have been opened.
* Destitute persons receiving grant from Hindu Religious Welfare Trust can open bank account by depositing ten rupees against National Identity Card and certificate issued by Hindu Religious Welfare Trust. As of January 17, 2013, 7 lakh such accounts have been opened.
* Different banks have opened more than 8000 accounts for small life insurance policy holders for Rs. 100.
* 45 BRAC schools have launched banking schemes till December 2012 to bring students under banking services. Banks have opened about 1 lakh 32 thousand student accounts.
An unemployed youth/young woman can open a bank account by depositing fifty rupees under the National Services program adopted by the government to eliminate unemployment. Beneficiary workers of the program can open bank accounts against the National Identity Card and Worker Identity/Registration Card issued by the Ministry of Food and Disaster Management to employ the poor and bring them under banking services. Recently, the Directorate of Women’s Affairs has given instructions to the concerned banks to open bank accounts for ten taka for ultra-poor women and marginal/class farmers under the ‘Food and Livelihood Security’ scheme. And due to all these steps, the financial services inclusion program in Bangladesh has been accelerated a lot. Moreover, banks have been advised to appoint a ‘focal point’ officer in each branch of the bank to make banking services convenient and accessible to the physically challenged.
School Banking: banking service
Another step towards accelerating financial inclusion programs is school banking. Bangladesh Bank through a circular dated November 02, 2010 directed all commercial banks to seriously introduce school banking services nationwide and to consider school banking as one of the tools for financial services inclusion with the aim of introducing banking facilities and technology to school-aged students. The main objective of introducing school banking is to encourage the formation of saving habits among students from a young age, to help them contribute to the economic activities of the country by bringing them under banking services, and to sow the seeds of financial education in the minds of children.
Account opening under school banking is also very easy to manage. Interested students in the age group of eleven to eighteen years i.e. from sixth to twelfth standard can open joint name accounts with their parents or legal guardians. This account is being opened with an initial deposit of just 100 rupees. No fees or charges are imposed as such. No; There is not even a minimum status requirement as such. Free or low-cost ATM cards, debit cards. And internet banking is available.
Such accounts will develop saving habits in the students, which will be useful later in their higher education. A significant section of the country’s population through school banking. It will be possible to cover financial services. As a result, young boys and girls are properly informed about banking Can, which will play a helpful role in building their beautiful future. School banking programs can provide students with the foundation of financial education to lead a financially secure life. Thus by practicing the financial education and experience gained from childhood they can contribute to the national economy of the country.
Farmer’s account for ten taka: banking service
One of the steps taken by Bangladesh Bank to improve the fortunes of the country’s best-respected farmers is to open no-frills accounts for them. Such a creative account opening system was not available before. In addition to the various subsidy benefits provided by the government for farmers, Bangladesh Bank has given instructions to open farmers’ bank accounts in state-owned and specialized banks with the aim of transferring agricultural loans from banks directly to bank accounts. The procedure for opening a farmer’s bank account is very simple. Farmers are not required to fill form while opening account.
A farmer can open a savings bank account at any branch of any state-owned commercial and specialized bank against their National Identity Card, Birth Registration or Agricultural Machinery Assistance Card issued by the Department of Agricultural Extension. There is no minimum balance requirement in these accounts and no charges are imposed. At the same time, excise duty deduction has been abolished in the case of such accounts exceeding one lakh rupees. Considering the education of farmers, they are given cash withdrawal vouchers instead of cheques. However, those farmers who want check books, are given check books. Uneducated farmers can forget their money by giving tips until they learn to sign.
Targeted disbursement of loans at subsidized interest rates:
For the first time in the fiscal year 2010-11, a target of disbursement of Tk 96 crores at subsidized interest rates of 2 percent has been set for the cultivation of import substitute crops such as pulses, oilseeds, spices and maize. In the said financial year, the banks disbursed about 71 crores of loans in this sector, which is 74 percent of the total target. In the financial year 2011-12, banks have disbursed about Tk 82 crore of loans against the target of Tk 78 crore in this sector, which is 105 percent of the total target. In the current fiscal year 2012-13, a target of Tk 89.45 crore has been set for disbursement of loans at 4 percent subsidized interest for cultivation of these import substitute crops, against which Tk 41 crore has been disbursed till February 2013. According to the existing policies, in the light of the actual loan demand, the banks set the annual target of loans payable for the purpose of cultivation of certain crops for subsidized interest and issue proper instructions to the concerned branches at the beginning of the year and as per the target. To ensure disbursement of loans, branches have introduced system of monitoring of loan disbursement progress. Bangladesh Bank is also regularly monitoring whether the banks are giving loans as per the target.
Beneficiary system: banking service
Banks will provide the list of farmers availing loans in this sector to the local Agricultural Extension Officer/Deputy Assistant Agricultural Extension Officer for the purpose of verifying the utilization of the loan disbursed at 4 percent interest rate. If information is received from that officer that the loan has not been availed in respect of any farmer, the normal interest rate will be applicable instead of 4 per cent subsidized interest rate on the concerned loan. In contrast to disbursement of loans at subsidized 4 percent interest rate in the crop sector mentioned above, the system of obtaining subsidy has also been simplified so that the banks can get the subsidy benefit quickly.
Banks can submit an interest compensation application at the rate of 6 percent to Bangladesh Bank within one month of the end of the respective year against the realized or adjusted loan accounts of loans disbursed at subsidized interest. Bangladesh Bank shall on a discretionary basis verify at least 10 percent of the loan documents of the loans claimed to be eligible for subsidized interest and determine the actual compensation by determining the percentage of the loan amount that is proved to be non-disbursed within the verified loans and apply it to the entire claimed loan and on that basis Bangladesh Bank from its own accounts of banks Will arrange payment of interest. Later, Bangladesh Bank will arrange for its replenishment through the Ministry of Finance. As a result, the interest of banks to join this program has increased.
A revolution in the cultivation of spices in the mountains:
Bangladesh is changing rapidly from all sides; And our Chittagong Hill Tracts are not lagging behind this change. The area is about one-tenth of the total area of Bangladesh. A silent revolution of ginger, turmeric, pepper, corn cultivation is going on in the mountains rich in beautiful forests, orchards, fruit gardens, fish resources. The hill farmers have started cultivating ginger, turmeric and chilli in a big way, leaving aside tobacco cultivation which is harmful to the environment. They are cultivating these crops with great enthusiasm as they are more profitable than tobacco. In addition, the opportunity to get loans from banks at low interest and easy terms has been added, which has appeared as an additional benefit for farmers.
As a result, not only the scenic beauty but the hill today is also a new horizon of economic development. Hill people who are used to traditional jum cultivation have now become interested in cultivating these crops. Bandarban alone has about 54,000 hectares of arable land within the vast hilly area. This area has great potential for cultivation of ginger, turmeric, garlic, onion, pepper. Five-six years ago, a few farmers of Rajbila and Kuhlang Unions of Bandarban Sadar Upazila first started commercial ginger cultivation. They collected ginger seeds from the plains of Thailand and Korea and planted them in the mountains. As the yield was good and they could sell ginger at a good price, they started cultivating ginger on more land. Seeing their success, within a few years, others also started cultivating ginger on a large scale.
Subsidized Interest Loan Program for Salt Farming: Demand for salt in Bangladesh is high and there is a favorable environment for salt farming in the coastal areas of the country. Salt cultivation in coastal areas involves a large number of small and marginal farmers. They are often victims of natural disasters like cyclones and floods. As a result, special measures have been taken to distribute individual or group-based loans to these financially weak salt cultivators on easy terms and 4 percent subsidized interest from 0.5 bigha to 2.5 acres of land per person. Bangladesh Bank has launched a special loan program from the financial year 2010-11.
This subsidized interest rate is applicable for salt cultivation in coastal areas during the salt cultivation season (generally December-May). More than 4 crore rupees have been disbursed to about 1200 salt farmers in the financial year 2010-11 at 4 percent subsidized interest and about 11 crore rupees to more than thirteen hundred salt farmers in the last financial year (2011-12). Banks can apply to Bangladesh Bank for interest compensation at the rate of 6 percent within one month of the end of the respective year against the realized or adjusted loan accounts of disbursed loans at subsidized interest rates of 4 percent.
Environment Friendly Refinancing Scheme:
Environment is endangered today in a climate changing world. Keeping the world safe from environmental disasters is an important challenge for human society. As the central bank of the country, Bangladesh Bank cares about environmental protection. Bangladesh Bank has already issued policies and guidelines for banks and financial institutions to follow to prevent environmental disasters. With the new CSR pledge of social and environmental lending under the direction of Bangladesh Bank, the banks have come forward to give loans to multi-faceted environment friendly projects including solar power, biogas, bio-fuel based power generation, ETP under the refinancing of Bangladesh Bank.
Refinancing program in renewable energy sector:
It is necessary to address the shortage of electricity and gas and protect the natural balance and public health through the use of solar energy and environment-friendly renewable energy in the country. In this context, the use of solar energy in homes and businesses in rural areas, the use of solar powered irrigation systems and the installation of biogas plants, biogas production from poultry farm litter, biogas stoves. banking service
Refinancing facility will be provided under Two banks have already entered into a participation agreement with Bangladesh Bank to get this refinancing facility.
Special Loan Program for Setting Up Agricultural Products Processing Industries: Bangladesh Bank has introduced a special loan program called ‘Refinancing Scheme for Setting Up Profitable Industries for Agricultural Products Processing’ from its own resources for the purpose of creating employment and poverty alleviation in the rural areas of the country. Foods covered under this loan program are processed food products (eg jams, jellies, juices, pickle syrups, sauces etc.); Fruits (such as mango, guava, jackfruit, litchi, pineapple, coconut etc.), vegetables (such as tomato etc.), pulses, chickpeas, mushrooms, dairy, salt, processing; Preparation of Bread, Biscuits, Chanachur, Chips, Potatoes, Fraks, Semai, Lachcha, Noodles, Flour, Flour, Semolina, Rice, Muri, Chira, Thai; Production of different types of Gura Masala Processing and freezing of prawns and other fish; meat processing; Preparation of feed for poultry, cattle and fish, manufacture of jute products (such as rope, yarn, jute, bags, carpets, jute sandal etc.), cold storage, storage and export of flowers, including manufacture of particle board, production of silk textiles; Edible oil refining Production of edible oil from rice bran; This loan facility is being given to 37 sub-sectors of agricultural products processing including beekeeping/honey production.
Loan Program to SME Sector: banking service
Small and Medium Enterprises (SMEs) are globally recognized as drivers of economic development. SMEs are increasingly playing an important role in unlocking the economic potential of the lower and middle classes in many developing countries around the world. Enterprises in the SME sector are relatively less dependent on worship than large industries. But there is scope for direct and indirect employment and more profit in this sector. These industries take less time to go into production; The use of electricity and energy is relatively low; It also contributes less to environmental pollution. Initiatives in this sector play an important role in meeting domestic demand. banking service
There is an opportunity to use indigenous raw materials, skilled manpower and appropriate technology in this sector. The SME sector can play a major role in achieving economic growth, poverty alleviation, rich-poor and regional disparities, gender equality and women’s empowerment. The industrialized and emerging countries of Asia, especially China, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam, Philippines, have been able to achieve their economic prosperity mainly through the development of small and medium industries. Our neighboring countries India, Pakistan and even Sri Lanka are paying special attention to the development of the SME sector. They have already made a lot of progress and achievements in this sector
did As one of the countries in the world, the SME sector has a special role in the overall economic development of Bangladesh. Industry contributes 31.26 percent of the gross domestic product. And almost 90 percent of all industries and businesses in the country are small and medium sector. About 85 percent of the total industrial employment is in this sector. Banks and financial institutions are coming forward to give loans to SMEs at a higher rate than before.
Women Entrepreneurship Development Loan Program:
Half of Bangladesh’s population is women. Although half of the population is women, the number of women entrepreneurs is very small. Women entrepreneurs are largely neglected from bank loan facilities. However, the active participation of women in the mainstream of the economy is very necessary for the industrial development of the country to be balanced and well-organized, as well as for sustainable economic growth. For this, Bangladesh Bank has given priority to women entrepreneurs in disbursing SME loans to ensure loans to women entrepreneurs in managing their business ventures. 15 percent of the refinancing scheme of the SME sector has been earmarked only for women entrepreneurs to ensure institutional credit facilities on easy terms. Before this, women entrepreneurs are getting loan facility from banks at maximum interest rate of 10 percent. woman banking service
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