Green banking on cards
The central bank will launch a 'green banking' system soon to encourage the use of alternative energy sources, especially solar energy, at all bank branches, the governor said yesterday.
“We are going to introduce a new banking system, and a circular will soon be issued in this regard,” said Atiur Rahman.
"We are now preparing the guidelines for this new system, where every bank will have to ensure an efficient use of energy and reduce dependency on conventional energy sources."
"Initially, we will ask all banks to volunteer in meeting regular energy needs through solar power. Gradually, we will make it mandatory when considering applications for opening new branches," he said.
Rahman was speaking at a seminar on 'Financial Inclusion through Adoption of Renewable Energy Technologies in Agriculture and Economy', co-organised by Rahimafrooz Renewable Energy Ltd and Credit Development Facility (CDF) at Sonargaon Hotel in Dhaka.
Rahman hopes this new system will help ease the energy crisis.
He said no new bank branches will be allowed to open without the use of solar power. "In future, all the banks will have to inform the central bank in advance how much energy they will consume in the next one year.”
He suggested the banks generate solar energy jointly with non-governmental organisations, which he thinks will cut costs and ensure
transparency.
The Bangladesh Bank chief asked all commercial banks to open branches in rural areas to take the marginalised under banking coverage. He warned of stern action if the instruction was not followed.
Rahman also said the Microcredit Regulatory Authority (MRA) will soon frame new regulations to reduce the interest rates charged by the micro-finance institutes.
"We are now looking at how microcredit organisations operate. Soon, we will have regulations on how much interest they should charge."
Munawar Misbah Moin, managing director of Rahimafrooz Renewable Energy Ltd, said the power situation that mostly hampers the agriculture sector can be improved by increasing renewable energy for irrigation.
"We have been working on renewable energy technologies for the last 25 years, and we have proven track record in introducing solar home systems. The breakthrough irrigation solution by solar water-pumping was installed in Borguna," he said.
Resource Development Foundation (RDF) implemented the solar water-pumping project in Borguna.
Mohammad Golam Mostafa, executive director of RDF, and Imranul Haque Chowdhury, vice president of CDF, also spoke.
Comments