Bangladesh Bank yesterday launched banking service for street children to bring them under institutional financial support.
Governor Dr Atiur Rahman formally inaugurated the service in the city’s Bangla Academy premises.
On 10 March, the central bank issued a circular directing all banks to allow street children and child workers to open bank accounts by taking a deposit of Tk10, similar to that of farmers and others who cannot afford normal banking services.
Initially, 10 banks have opened the service in association with the non-government organisation “Save the Children.”
The initiative is aimed at offering banking facility to the destitute children who have no option than to live and work in railway stations, slums, footpaths, bus stations and ferry terminals.
The 10 banks are Rupali Bank, Agrani Bank, Pubali Bank, One Bank, National Bank, Southeast Bank, Bank Asia, City Bank, NCC Bank and Bangladesh Krishi Bank.
In accordance with guideline set by the central bank, all the accounts should be operated by the non-government organisations (NGOs) and the central bank will nominate the NGOs.
In his speech at the inaugural function, Governor Dr Atiur Rahman described the launching of service as opening of “new horizon” in the banking sector.
He hoped it would be able to help children cultivate the habit of savings and would also eventually help them step towards a better future.
On the initiative, Dr Atiur said they had focused since last several years to transfer Bangladesh Bank into a participatory, publicly benevolent and humanity-based institution. “As part of these activities we have started financial inclusion programmes to bring people under banking services.”
The central bank said the concerned NGOs will nominate at least two of their staff for doing the job of street children accounts. Among the two employees, one should be from accounting department and the other will be from field level officers.
However, the NGOs should take the overall responsibility of operating the accounts until the children reach the age of 18 years. The NGOs and the banks concerned will sign agreements to operate the accounts, Bangladesh Bank added.
There will be no fees for these accounts, it said. The account holders will not get online transaction facility, meaning no debit or credit cards would be issued by the banks. Withdrawal should be done by using cheques or other physical debit instructions.
Dr Atiur Rahman made reference to such previous initiatives and said the central bank already introduced various types of banking services for farmers, sharecroppers and other underprivileged people.
He mentioned 10 taka accounts for marginal farmers, formation of refinance scheme of Tk200 crore to mobilise these accounts and bank accounts for school children and garments workers.
Governor said the corporate social responsibility (CSR) expenditure of the banking sector increased to Tk447 crore, eight times higher than Tk55 crore five years ago.
