An Overview of School Banking Program: Its Problems, Prospects and Acceptability (A Case Study on Janata Bank Limited Shamoli Corporate Branch)

Abstract

JANATA Bank Limited was born with a new concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development of the country. Very recently, BANGLADESH BANK has launched a scheme for the students named ‘School Banking Scheme’ through all commercial and specialized banks in Bangladesh. This concept is new as a separate product but became a popular one within two years with a view to inspiring for savings and creating savings mentality to the school going students with an attractive interest rate, waiver of service charges like other deposit accounts. BB issued a circular on 2nd November, 2010 to all commercial Banks for all school going students to be introduced with developed technology and banking services to play role in financial activities by savings. Up to this period more than 38 banks launched this scheme. But the rules and regulation to operate this kind of account is still ambiguous to all guardians as well as officials that how to open and operate, what necessary documents are needed to open this account from the students though every banks kept about all scheme through website. According to updated statistic of Bangladesh Bank Up to June’2011 to December’2011 more than 67 thousand 220 numbers of school banking accounts was opened and operated under banking jurisdiction. Approximately taka 31 crore was deposited under 29 thousand number of school banking accounts and taka 22 core 39 lac has been increased within six month difference. According to Private statistic there are 65 thousand and 428 numbers of accounts are in the form of school banking deposit account and deposit amount came to about taka 42 core 37 lac. Due to lack in publicity school banking scheme did not overcome its objectives like other deposit schemes. By this scheme most of students can able to build up capital for their future and besides this banks not only use to recurring deposit but also play a social role in the country. This program would be the milestone for the school banking operation for the students and guardians and for the bankers who will introduce the scheme.