BB introduces banking for street children

BSS: Bangladesh Bank has launched banking service for the street children, which will allow them to open a bank account with Tk 10 only. All the government and private banks in the country will operate the account which would help the children to develop their savings habits and eventually help them step forward towards better future.

BB governor Atiur Rahman on Saturday inaugurated the service at a ceremony in city’s Bangla Academy. The central bank has taken the initiative of institutional financial support for the street children after introducing various types of banking services for farmers, sharecroppers and some other underprivileged people. Speaking on the occasion, Atiur Rahman said some 8-10 lakh distressed street children had been engaging with hazardous works, of which most of them were involving with drug addiction and criminal offences.

‘The initiative jointly taken by the banking sector and non-government organisation would help to prevent the street children from derailment through developing financial position,’ he hoped. The central bank governor expressed his confidence that the initiative not only acquaint the street children with the banking system, but also habituate them for savings. He advised the banks to innovate necessary products so that the children could collect loan after completing 18 years to be self-reliance. Initially, 300 street children are getting opportunity to open bank account in the first phase.

On March 10 this year, the central bank in a circular asked all banks to allow street children and child workers open bank accounts by taking a deposit of Tk 10 only, which the banks are now offering to the farmers and others who cannot afford normal banking services.

Following the directive, 10 banks so far teamed up with non-government organisation Save the Children for offering the service to the destitute children who have no option that live and work in railway stations, bus and ferry terminals, slums and footpaths. 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. The other banks will follow the suit in phases. As per the BB guideline all the accounts should be operated by the non- government organisations, nominated by the central bank. The NGOs concerned will nominate at least two of their staff for doing these jobs. Among the two employees, one should be from the accounting department and the other from the field level.

However, the NGOs should take the overall responsibility of operating the accounts until the street children and the child workers reach the age of 18 years. The NGOs and the banks concerned will sign agreements to operate the accounts.
 

There will be no fees for these accounts, but 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.