School banking on the cards

Bangladesh Bank (BB) yesterday advised commercial banks to introduce school banking and not to take application fees from job seekers.
In a major decision, the central bank asked all banks to open school banking to encourage students to build a habit of saving. It also said the students need to be brought under banking services to help them contribute to economic activities through savings. BB issued a circular without providing any guideline for school banking.
Banks could take up various schemes, said BB Deputy Governor Nazrul Huda.
He said bankers can visit schools and open accounts for students and can also open booths near such institutions. They can introduce different savings schemes suitable for the students that can help them to pursue higher education.
If the school banking is introduced, a large section of the population can be brought under financial inclusion drives. School banking was in vogue during their childhood, he added.
In another circular, Bangladesh Bank said the importance of banking in national economic activities cannot be ignored. But some banks realise fees in the form of pay-order or bank drafts from applicants for jobs, which is difficult to bear for an unemployed youth.
In the circular, BB presented a reverse situation and said foreign banks and some private banks do not charge any such fees, which is commendable. The circular urged all banks to follow the example.