Kamruzzaman Bablu :
The Palli Sanchay Bank (PSB), inaugurated two months ago by Prime Minister Sheikh Hasina, is yet to start functioning.
The PSB, a specialised bank, was established by converting the ‘Ekti Bari, Ekti Khamar Project’ under the Rural Development and Cooperatives Division (RDCD) on June 22 this year.
According to sources, the PSB authorities failed to start banking activities because officers inducted from the project lacked training in banking and the necessary software was absent.
The PSB authorities have requested three banks-Bank Asia Limited, Bangladesh Commerce Bank (BCB) and United Commercial Bank (UCB) to continue banking with them as they did earlier.
“We have got approval to operate a total of 485 branches of the bank across the country. We are still looking for expert manpower and necessary software to run them properly,” PSB chairman Mihir Kanti Majumder told the New Nation.
Meanwhile, the bank’s current management has initiated moves to register societies-40,360 across the country, formed under the project to run them smoothly under the Department of Cooperatives (DoC).
As a result, project beneficiaries and the societies are anxious about the future of the money they deposited in micro savings and the funds the government allocated for them as grants under the social safety net programme.
According to Majumder, “The bank needs three kinds of software that include core banking and agent banking software. The bank management is trying train its officials and employees to make them eligible for banking activities.”
Officials of around 100 branches have already been trained, and the rest would soon follow, he added.
The bank authorities are trying to procure the relevant software from various sources. “We hope to get them soon. But it may take around six months.
Until then, the Palli Sanchay Bank will continue its banking activities with the three banks as earlier.
They have already been requested to continue banking with the new bank,” he added.
Prime Minister Sheikh Hasina inaugurated 100 branches of the PSB on June 22.
Later, the bank authorities got the approval of the Banking and Financial Institution Division (BFID) under the Finance Ministry to open another 385 branches.
The PSB management has now made arrangements to establish branches of the bank in each upazila.
The government enacted the Palli Sanchay Bank Act, 2014, to set up the bank for savings mobilisation in rural areas. Its paid-up capital is Tk. 200 crore, of which the government is to provide Tk. 120 crore, with the rest coming from project funds.
The BFID appointed Mihir Kanti Majumder, former secretary to the Rural Development and Cooperatives Division (RDCD), as its chairman immediately after the President approved the Act and the publication of a gazette notification.
The PSB board members and its managing director were appointed later. The authorities opened the bank’s 100 branches in a hurry without making adequate practical preparations to run the bank smoothly.
Ekti Bari, Ekti Khamar project officials said the bank management was trying to register the societies formed under the project run by the Department of Cooperatives.
The cooperative societies were riddled with allegations of mismanagement and funds misuse and would face similar problems after getting registration from the department, they feared.
Under the circumstances, beneficiaries of the project have urged the government not to register the societies now under the Cooperatives Department, and have sought the Prime Minister’s intervention to stall the move.
The Palli Sanchay Bank (PSB), inaugurated two months ago by Prime Minister Sheikh Hasina, is yet to start functioning.
The PSB, a specialised bank, was established by converting the ‘Ekti Bari, Ekti Khamar Project’ under the Rural Development and Cooperatives Division (RDCD) on June 22 this year.
According to sources, the PSB authorities failed to start banking activities because officers inducted from the project lacked training in banking and the necessary software was absent.
The PSB authorities have requested three banks-Bank Asia Limited, Bangladesh Commerce Bank (BCB) and United Commercial Bank (UCB) to continue banking with them as they did earlier.
“We have got approval to operate a total of 485 branches of the bank across the country. We are still looking for expert manpower and necessary software to run them properly,” PSB chairman Mihir Kanti Majumder told the New Nation.
Meanwhile, the bank’s current management has initiated moves to register societies-40,360 across the country, formed under the project to run them smoothly under the Department of Cooperatives (DoC).
As a result, project beneficiaries and the societies are anxious about the future of the money they deposited in micro savings and the funds the government allocated for them as grants under the social safety net programme.
According to Majumder, “The bank needs three kinds of software that include core banking and agent banking software. The bank management is trying train its officials and employees to make them eligible for banking activities.”
Officials of around 100 branches have already been trained, and the rest would soon follow, he added.
The bank authorities are trying to procure the relevant software from various sources. “We hope to get them soon. But it may take around six months.
Until then, the Palli Sanchay Bank will continue its banking activities with the three banks as earlier.
They have already been requested to continue banking with the new bank,” he added.
Prime Minister Sheikh Hasina inaugurated 100 branches of the PSB on June 22.
Later, the bank authorities got the approval of the Banking and Financial Institution Division (BFID) under the Finance Ministry to open another 385 branches.
The PSB management has now made arrangements to establish branches of the bank in each upazila.
The government enacted the Palli Sanchay Bank Act, 2014, to set up the bank for savings mobilisation in rural areas. Its paid-up capital is Tk. 200 crore, of which the government is to provide Tk. 120 crore, with the rest coming from project funds.
The BFID appointed Mihir Kanti Majumder, former secretary to the Rural Development and Cooperatives Division (RDCD), as its chairman immediately after the President approved the Act and the publication of a gazette notification.
The PSB board members and its managing director were appointed later. The authorities opened the bank’s 100 branches in a hurry without making adequate practical preparations to run the bank smoothly.
Ekti Bari, Ekti Khamar project officials said the bank management was trying to register the societies formed under the project run by the Department of Cooperatives.
The cooperative societies were riddled with allegations of mismanagement and funds misuse and would face similar problems after getting registration from the department, they feared.
Under the circumstances, beneficiaries of the project have urged the government not to register the societies now under the Cooperatives Department, and have sought the Prime Minister’s intervention to stall the move.
