The Jatiya Sangsad yesterday enacted the Palli Sanchay Bank law which will authorise the government to set up a specialised bank for the beneficiaries of the Awami League government’s “one house one farm project.”
In addition to saving, the bank will provide loan to the members of the cooperatives formed to run the Tk1,342 crore “one house one farm project,” which the ruling party rates as one of the flagship projects for poverty alleviation.
The government share of the bank is 51% while the members of the cooperative societies of the project will own the rest 49% equity.
The assembly enacted the bill by voice vote as Finance Minister Abul Maal Abdul Muhith in absence of Local Government Minister Syed Asharful Islam proposed its passage.
According to the law, the bank’s authorised capital stands at Tk1,000 crore with 10 crore shares at a value of Tk100 each. The bank’s proposed paid-up capital is Tk200 crore.
The government can raise the paid-up and authorised capitals through gazette notification.
The Bank Companies Act will govern the Palli Sanchay Bank regulated by the central bank.
The bank with its head office in Dhaka can set up regional offices and branches across the country with the approval of the central bank.
The management board will consist of 16 members and of whom seven board of directors will be from the shareholders from the division-level association of the “one house one farm project”.
Nine directors will come from the finance division, rural development and cooperatives division, director general of rural board, the managing director of the Palli Sanchaya Bank and four experts on rural economy and macro-financing.
The board members will elect its chairman from the board members.
The tenure of the board will be three years. One can be appointed for maximum two consecutive terms.
The borrowers of microcredit system would not need to submit any security to get loan, but the borrowers interested in getting loan more than the stipulated amount of money will have to provide collateral.
Borrowers using false information for getting loans from the bank will get one-year imprisonment or a fine of Tk50,000 or both.
Chittagong Hill Tracts Development Board Law passed
The House also enacted the Chittagong Hill Tracts Development Board Bill to update the previous Chittagong Hill Tracts Development Board Ordinance promulgated by military ruler Gen Ziaur Rahman in 1976.
The board is tasked to adopt different development projects aimed at ensuring the upliftment of the hill people, mainly the small ethnic groups in three hill districts – Rangamati, Khagrachhari and Banderban.
