Finance Minister AMA Muhith presented the ‘Palli Sanchay Bank Bill-2014’ (village savings bank) to set up the bank to cater to the rural and under-privileged people.
It was passed by a voice vote.
The government is setting up the bank to give ‘One House, One Farm’ project an institutional form, which it hopes, will be instrumental in alleviating poverty.
It encourages the rural people to save their hard-earned money, and help them create organisations for socio-economic development and ensure women empowerment.
During its 1996-01 term, the Awami League government started the ‘One House, One Farm’ project, but it was shelved by the succeeding BNP-Jamaat coalition government.
The Awami league revived it after coming back to power in 2009.
A Tk 13.32 billion fund was created for more than one million families from 17,300 villages across Bangladesh.
Muhith presented the bill on Mar 31 which was then sent to the standing committee on finance ministry for vetting.
The ‘Palli Sanchay Bank’ can have an authorised capital of Tk 10 billion along with a paid-up capital of Tk 2 billion.
Fifty-one percent of the paid-up capital will be provided by the government and the rest by the cooperative societies formed under the ‘One House, One Farm’ project.
The specialised bank will have a 16-strong board of directors.
Finance Minister Muhith said the ‘One House, One Farm’ project was contributing in alleviating poverty by encouraging the participants to save money, increase their efficiency through training.
The scheme was also advocating women empowerment, creating cooperative societies for social and financial development, training and funding them and granting them loans.
The specialised bank is being set up so that the project's participants can continue their economic activities even after the project formally comes to an end.
These families will be able to deposit their savings in this bank and will also be able to take loans.
