Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Thursday asked the private commercial banks (PCBs) to open an equal number of fresh branches in both rural and urban areas aiming to bring more village people under banking network.
Under the revised provisions, the ratio of urban and rural bank branches has to be 1:1 instead of 4:1 set earlier.
“We’ve taken the latest measure in line with the guidelines for setting up new PCBs,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka, adding that it will help to bring the ‘un-banked’ people under banking services as part of financial inclusion.
Relating to the branch expansion policy, the new guidelines said the ratio of urban and rural bank branches has to be 1:1 or as per instruction issued by the BB from time to time.
The central bank issued a circular in this connection on Thursday and asked the chief executives all PCBs to follow the new directives relating to branch opening in urban and rural areas properly.
The branches that will be set up in city corporations and municipality areas will be considered as urban ones while those outside these zones being considered as rural ones, according to the circular.
BBN/SSR/AD-9:43 pm (BST)