Two months passed after its inauguration by the Prime Minister, Palli Sanchaya Bank is yet to start banking activities.
This
specialized bank for the rural savers has been established abolishing
the Ekti Bari, Ekti Khamar Project or EBEK of the Rural Development and
Cooperatives Division of the LGRD Ministry.
Failing to start banking
operation due to lack of training of the officers deputed from the
project and necessary software, the bank authority has requested three
banks - Bank Asia Limited, Bangladesh Commerce Bank (BCB) and United
Commercial Bank (UCB) - to continue banking with the newly established
bank as they were working earlier with the project.
Meanwhile, the
existing bank management has also begun a move to register around 40,360
societies across the country formed under the project to run those
smoothly under the Department of Cooperatives (DoC).
As a result,
beneficiaries of the project and the societies are in anxiety over the
fate of their deposits they saved by micro-saving and the fund the
government allocated for them as grant under the social safety net
programme.
When contacted, Palli Sanchaya Bank Chairman Mihir Kanti
Majumder told the Daily Observer: "Though they have got approval of
operating a total of 485 branches of the bank across the country, they
are still on search for expert manpower and necessary software to run it
properly."
The bank needs three kinds of software that include core
banking and agent banking software. The bank management is trying to
train up its officials and employees to make them eligible for banking
activities. Officials of around 100 branches have already been provided
training. The rest officials will also be imparted training soon,
Majumder added.
The bank authority is trying to collect banking
software from different entities, he said, hoping that it would be
possible to collect the software soon. "But, it might take around 6
months. Until then, Palli Sanchaya Bank will continue its banking
activities with the three banks as earlier.
Prime Minister Sheikh
Hasina on June 22 inaugurated 100 branches of the new bank officially.
Later, the bank authority has received approval of the Banking and
Financial Institution Division (BFID) under the Finance Ministry to
start 385 branches more in the country.
With this approval, the bank authority has completed the procedures to set up its branches in each upazila across the country.
The
government enacted the Palli Sanchaya Bank Act, 2014 for setting up the
specialized bank. Its paid-up capital is Tk 200 crore, of which Tk 120
crore is to be provided by the government and the rest from the project
fund.
BFID has appointed Mihir Kanti Majumder, former Secretary to
the Rural Development and Cooperatives Division, as its chairman
immediately after the President gave assent to the law and its gazette
was published.
The banl's board members and its Managing Director were also appointed later.
The
authority has inaugurated its 100 branches in a hurry without taking
its practical preparation to run the bank smoothly with its
beneficiaries and societies.
According to EBEK project officials, the
bank management is trying to register the societies formed under the
project from the Department of Cooperatives.
There are thousands of
allegations of mismanagement and misuse of fund against the cooperative
societies across the country. The societies will also experience the
same condition after getting registration from the department, they
feared.
Considering the situation, beneficiaries of the project urged
the government not to register those under the DoC. They sought the
Prime Minister's intervention to resist the move.
