It seems that the row within government over the proposed Palli Sanchay Bank, a bank to encourage rural savings, has finally seen an end.

Bangladesh Bank and Finance Division who have been opposing the proposal from the very outset have retreated.

“We have given consent to the bank. It will be placed at the next cabinet meeting for approval in principle,” said Finance Minister AMA Muhith on Thursday.

Emerging from a meeting on the proposed bank in Dhaka on Thursday, the minister told it to the reporters on Thursday. State Minister for LGRD Jahangir Kabir Nanok, the LGRD Secretary, Banking Division Secretary Dr Aslam Islam and Bangladesh Bank Governor Dr Atiur Rahman also attended the meeting held at the finance ministry office.

AMA Muhith said the draft Palli Sanchay Bank Act 2013 will be presented in the next session of the parliament.

The ministry realised that such bank would make rural people interested in saving money and attract investment opportunities in the rural areas.

He said they first opposed the idea of Palli Sanchay Bank as the proposal for establishing a commercial bank.

As the government is at the last stage of its tenure, it might not be able to finalise the proposal before leaving office, said the

minister. “There is no political motive against the setting up of the specialised bank. Proposal was also not made hurriedly.”

The finance minister said the concept of the Palli Sanchay Bank comes from the Grameen Bank. “But this is not to destroy Grameen Bank.”

“If someone says that it (Palli Sanchay Bank) is a conspiracy against the Grameen Bank, it’s just rubbish.”

Earlier on July 30, Prime Minister Sheikh Hasina gave her direction to establish a new specialised bank named Palli Sanchay Bank to avoid the misuse of deposits made by poor rural people.

The ministry of finance took the decision to establish the specialised bank on the same day it decided to prepare a draft of the Palli Sanchay Bank Act 2013 in a meeting on August 1.

According to a press release, the number of beneficiaries of “One House One Farm” project now stand at over Tk1m while their deposits exceeded Tk1bn.

Ekti Bari Ekti Khamar (One House One Farm) was launched by the Rural Development and Cooperative Division under the LGRD ministry with a target of positively changing the lives of rural people. 

News:Dhaka Tribune/08-Nov-2013