School banking gets huge response with Taka 1,400cr deposits

School banking is gradually getting huge responses from the students across the country as deposits with the banking accounts crossed Taka 1,400 crore at the end of June 2018.

The central bank's latest quarterly report on financial inclusion shows that a total of Taka 1,419.86 crore was deposited with 15,39,836 school banking accounts at 56 scheduled banks as of June 30 this year.

According to the report, the school banking service is more popular in the cities than in the rural areas as 9,42,388 school banking accounts were opened in the cities against 5,97,448 accounts in the rural areas.

The banking is also more popular among the male students than the female students as 8,93,793 school banking accounts were opened by male students against 6,46,043 by female students.

Bangladesh Bank launched the programme in November 2010 for school students to help them save up for the future, learn financial literacy at an early age and build the habit of saving, a BB official told the news agency.

Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, United Commercial Bank and Rupali Bank are the five banks that pulled most of the deposits from the students.

Islami Bank opened 2,44,546 accounts, which is 15.88 percent of the total accounts, while Dutch-Bangla Bank ranked first by collecting deposits of Taka 424.95 crore with school banking accounts.

As per an instruction of the central bank, Islami Bank introduced school banking so that the future generation can gain knowledge on the financial system, said Islami Bank Deputy Managing Director Abu Reza Mohd Yeahia.

Source: Bangladesh Sangbad Sangstha (BSS)