Wednesday | 15 January 2025 | Reg No- 06
বাংলা
   
Wednesday | 15 January 2025 | Epaper

School banking

Published : Wednesday, 20 April, 2022 at 12:00 AM  Count : 1486
Md Zillur Rahaman
Since all commercial banks have the opportunity to open school banking, motivating students to do so will yield good results in the future, as students' savings today are the best investment of the future and the foundation of the golden ladder of the future. The Indus makes tiny dots, which is the ultimate truth in terms of savings.

School banking is basically the banking system for the boys and girls studying in schoolsand colleges. No charge is deducted from this account. This has been introduced in Bangladesh since 2010 at the initiative of Bangladesh Bank. In school banking, the target group is 11 to 17 year olds, students who have no source of income. They receive gifts or cash from their parents, siblings, relatives at various occasions, festivals or to save some money from the regular lunch tiffin at a bank branch near the school.

The purpose of School Banking is taking and implementing such initiative to open savings account.

In fact, school banking is an important attempt to inculcate the attitude and habits of boys and girls to increase and save financial skills. School banking is practiced in different countries of the world.

Commonwealth School Banking is considered a popular savings growth initiative in many countries, including Australia and England. This type of banking has been started to help the students to develop the habit of saving by reducing the cost.

By keeping the excess money in the bank, the attitude of saving will be formed and while coming and going and withdrawing money regularly in the bank, it will be seen that sufficient amount of money has been deposited by those concerned, which has been made possible by tiffin money or gifts given by elders. And the habit of saving that will be formed through this will give lifelong benefits. School banking services have reached almost all parts of the country.

At present this student banking scheme is running in all the scheduled banks of our country. In this case, the private banks are far ahead of the government banks. To run a bank account, the customer has to pay some or the other charge. But under the direction of Bangladesh Bank, the students of the school do not have to pay any cost to run this account. There is no charge for taking check books. There are other facilities including deposit books, debit cards, mobile banking.

Transactions can be made as much as desired. For the banking authorities, school banking deposit is basically a long term deposit, good way of investment against education which can be invested in short or long term.

According to the latest data of Bangladesh Bank, till December 2021, the accounts of 28, 66,873 students have been opened in school banking and in contrast, the amount of deposits stood at more than Tk. 22.05 billion. Out of these, Tk. 12.02 billion are for boys and Tk. 13.36 billion for girls, of which 52% are in urban areas and 48% in rural areas. At the rural level, the accounts have jumped by 1.23 percent in the October-December quarter. However, in the city it has down by 6.09 percent.

In this context, Bangladesh Bank says, adults as well as children are now turning to the bank. Bangladesh Bank has directed the banks to create a trend of saving among school students, which is having a positive impact on the entire banking sector.

According to the latest data from Bangladesh Bank, 54 percent boys and 46 percent girls have accounts in school banking and 54.51 percent boys and 45.49 percent girls in terms of deposits. Boys and girls accounted for 3.12 percent and 2.84 percent, respectively, during the quarter. During the same period, deposits increased by 1.29 percent and 2.31 percent.

Analysis of data of Bangladesh Bank shows that till December 2012, a total of 1, 32,537 accounts were opened in the country's banks under school banking. At that time the total balance in the accounts was only Tk 965.1 million. As of December 2021, the accounts of 28, 66,873 students have been opened in school banking and in contrast, the amount of deposits is more than Tk. 22.05 billion.

According to the central bank, all educational institutions were closed after March 2020 due to the COVID-19 pandemic. Besides, many students have crossed 18 years in the last two years. The impact of the epidemic on declining household incomes has also had a major impact on school banking that is why banking in urban schools has decreased but increased in rural areas.

In 2021, Dhaka Division was ahead in terms of school banking accounts and deposits. 25.78% of the total account number in this section, which is 44.40 percent of the total deposit. Besides, the accounts in Chittagong are 21.16 percent of which the number of accounts (6, 06,741) and the deposit is 23.04 percent of which is the amount of money (Tk. 5.08 billion).

The participation of commercial banks is increasing in line with the interest of students in school banking activities. As a result, the amount of deposits opened in the banks under this program as well as the amount of deposits is continuously increasing.

According to the central bank, most of the accounts and deposits in school banking are in private commercial banks. Private banks accounted for 68.20 percent of the total accounts in the December quarter. The state-owned bank account has 26.50 percent.

However, students have been able to deposit money since 2011. Although the account was opened with Tk. 10 in 2011, it was asked to deposit Tk. 100 to open the account later. There is also an opportunity to convert these accounts into general savings.

Savings are the yardstick of the future, the ladder of dreams and the friend of extreme danger. In the future, it is very useful to be comfortable in old age, to read and write for boys and girls, to get married, to pay for medical expenses in case of sudden illness, etc.

Therefore, it is important for everyone to make a habit of saving to meet the future financial crisis. We should save a little from today without thinking about tomorrow. It could be a sand bank, an association, a private company or a scheduled bank. Students save the future, theyare the craftsmen of the nation and the ladder of dreams. Their savings against education is a good investment in building the future. In this case, parents, guardians, teachers should all come forward and at the same time show inspiration and encouragement to the tenderhearted students.
Md Zillur Rahaman, Banker







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