Staff Correspondent: Account and deposit under school banking witnessed a significant rise across the country due to the holistic approach of the banking sector.
School banking accounts and their deposits rose by nearly 14 percent in September compared to the same period last year, according to the latest data by BB.
During the July-September period of the current fiscal year, deposits rose by Tk 173.91 crore to Tk 1,428.14 crore, while the number of accounts increased by 222,344 to 1,609,961.
This is an increase from the previous fiscal year-where total deposits were Tk1,254.23 crore and total number of accounts were 1,387,617-for the same period. Tk 1,196.65 crore-83.96 percent of total school banking deposits till September this year-was deposited with 1,031,383 accounts. 64.06 percent of a total school banking accounts is in private commercial banks.
On the other hand, Tk 191.15 crore was deposited with 446,426 accounts in state-owned commercial banks, as mentioned in the central bank’s latest quarterly report on financial inclusion. Tanisha Anzum Arpita, a student of Class III at Isapur Govt Primary School of Sirazdikhan in Munshiganj, is a Bank Asia account holder since 2015. Her father Rafiqul Islam said: “We opened an account in her name when we heard that school banking services have been launched. It’s nice to have an account in her name.
This way child gets accustomed to banking.”
Bangladesh Bank introduced the school banking scheme in 2010, with a view to familiarising school students with saving money. That little step has paid rich dividends spreading across the country.
“Our school banking project has been appreciated internationally. So many children having bank accounts is a great achievement,” said a senior Bangladesh Bank official.
However, the central bank issued the directive in a circular to the CEOs and managing directors of scheduled banks recently.
Bangladesh Bank (BB) has directed all scheduled banks to convert school banking accounts to savings accounts, upon the account holders reaching 18 years of age.
The central bank issued the directive in a circular to the CEOs and managing directors of scheduled banks on Monday, ordering school banking accounts of students who are 18 years old to be converted to general savings accounts with the consent of the account holders.
Additionally, the circular also mandated banks to regularly send information about the progress of school students’ accounts to the Financial Inclusion Department of Bangladesh.