Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has introduced guidelines for setting up new business centres by the commercial banks aiming to strengthen the financial inclusion process through bringing un-banked people under banking network.
Under the new provisions, the banks will have to seek prior permission from the central bank for setting up collection booths, electronic booths, business development centres and rent or lease.
Besides, the banks will have to submit an annual planning relating to establishing new branches, which will be approved by their board of directors to the Bangladesh Bank (BB), the country’s bank, within November each calendar year.
The BB issued the guidelines in this connection on Thursday and asked the chief executives of all 47 scheduled banks to maintain the latest provisions for setting up new branches and business centres.
The number of rural bank branches will be minimum 50 per cent of the total branches approved in a calendar year, according to the new guidelines.
“We’ve issued the guidelines putting more emphasis on rural bank branches than on urban ones to bring more village people under banking network,” a BB senior official told BBN, adding that the board of directors of the commercial banks has been involved in the branch opening process to ensure accountability and transparency in the country’s banking sector.
The branches that will be set up in city corporations and municipality areas will be considered urban ones while those outside these zones will be considered rural ones, according to the circular.
Under the new provisions, the commercial banks will not be allowed to provide advance for more than three years for renting or leasing of a branch or business development centre.
On the other hand, the banks will be allowed to receive the government revenue and tuition fees along with utility services through their collection booths, according to the new guidelines.
BBN/SSR/AD-02Dec12-11:10 am (BST)
