Presented by-

Sania Afrin

ID: M20190202329
Batch: 19th
Program: MBA(Evening)
An Overview of Financial Inclusion
Activities of Bangladesh Bank
Objective of the Study:
To show an overview of financial inclusion
activities of Bangladesh Bank.
To find the impact of existing activities of
financial inclusion on individuals, institutions,
and the economy of Bangladesh.
To learn about the procedure of developing
policies for other banks.
To know about how Bangladesh Bank is
supporting the sustainable economic growth of
Bangladesh through its core policy initiatives.
Sources of Data:
Annual & quarterly report of Bangladesh
Bank.
Different publications of Bangladesh Bank.
Website of Bangladesh Bank.
Different circulars of Bangladesh Bank.
Printed outlines & documents.
Limitations:
Limitation of time
Shortage of verified data
Lack of experience.
Organisational Overview
Bangladesh Bank:
Bangladesh Bank is the central Bank like other
central banks that performs various financial
activities to develop the country’s economic
growth. Financial inclusion is one of them. It is
an important member of the Alliance for
Financial Inclusion. It has been working as a
guardian of all banks in Bangladesh since after
liberation war.
Financial Inclusion
Financial Inclusion:
Financial inclusion is a system that includes
unbanked & under-banked people into the
banking system. Financial Inclusion targets
those people who can not have easy access to
banking systems. The main target of financial
inclusion is to provide baning services like
savings, transactions, payments, credit &
insurance etc. to the economically
underprivileged & marginalized people.
Financial inclusion focuses on the delivery of
financial services at affordable costs to the
sections of disadvantaged & low income
segments of society
Functions of Financial
Inclusion:
Provide financial service to all
Provide financial services like savings,
deposits, loans, transactions, payment etc. at
economical prices to the unprivileged people.
Set up financial institutions
Strong economy
Remittance or money transfer facilities
Activities taken by
Bangladesh Bank
No-frills Account:
A no-frills account is a bank account that can
be opened & maintained with a zero balance,
levies zero or nominal charges. No-frills
account can be opened with an initial deposit of
TK10, TK50, TK100 by underprivileged
people, school students under 18 years &
working children who are allowed to maintain
the accounts with zero or nominal charges.
School Banking:
The introduction of school banking is one of
the most significant milestones in the financial
inclusion initiatives of Bangladesh Bank.
School banking program originates the habit of
saving among children. By opening a bank
account, children become habituated to take
service of banks at very early age. The school
banking program introduces banking services
& modern banking technology to students of
age less than 18 years.
Agent Banking:
Agent banking means providing limited scale
banking & financial services to the underserved
population through engaged agents under a
valid agency agreement, rather than a
teller/cashier. It is the owner of an outlet who
conducts banking transactions on behalf of a
bank. Agent banking services was introduced in
2013.
Bank account for Street &
Working children:
In 2014, Bangladesh Bank launched banking
service for the street children, which will allow
them to open a bank account with Taka 10 only.
All the government & private banks in the
country will operate the account which will
help the children to develop their savings habits
& eventually help them step forward towards
better future. As per Bangladesh Bank
guideline all the accounts should be operated
by Non-government Organizations (NGOs),
nominated by the central bank. There won’t be
any fees for these accounts.
BDT 3000 Crore Refinance
Scheme to Combat Covid-19:
The recent Covid-19 pandemic has caused an
economic slowdown worldwide. A lot of
people have fallen victim to this unfortunate
situation & a large number of people are
suffering from financial instability as the
pandemic snatched away a lot of people’s job.
In this situation, Financial Inclusion
Department of Bangladesh Bank undertook a
timely measure & formulated a refinance
scheme worth BDT 3000 crore to facilitate
financial access to the poor & underprivileged
population of the country. This scheme was
introduced in 2020. This refinance scheme of
BDT 3000 crore for Covid-19 affected
marginal people allows commercial banks to
disburse loans to low income earners, farmers,
street hawkers, women, extreme poor etc. at an
incredibly low rate of 9%.
BDT 500 Crore Refinance
Scheme:
The Financial Inclusion Department of
Bangladesh Bank has launched another
refinance scheme worth BDT 500 crore called
10/50/100 TK No-frills account for low grade
earners. The maximum interest rate of this loan
is 7%.
Financial Literacy:
Financial Literacy means the knowledge &
skills needed to make important financial
decisions. Everyday thousands of people are
deciding where to open a bank account, which
mortgage to choose, where to invest their
money & how to save for retirement. Everyone
should be able to understand the risks involved
when borrowing or investing money. Financial
literacy can help individuals plan for future,
make better decisions about what to do with
their money. Bangladesh Bank has taken
initiatives about financial literacy. Bangladesh
Bank has been working to include a special
chapter on financial literacy in the national
curriculum for secondary level education.
Findings:
Because of the initiatives taken by
Bangladesh Bank, poor people are having
banking services & taking loans from the
banks.
Banking services by agent banking are
increasing.
Students can open savings account & having
banking services.
Street children can open savings account &
having banking services.
Because of refinance scheme, poor people
are getting loans at a very low interest.
Recommendations:
School banking services can be added to the
board book so that students can learn about
banking services automatically.
More awareness program can be arranged for
agent banking in remote areas.
More initiatives should be taken regarding
financial literacy.
Thank You