A bill titled ‘Palli Sanchay Bank Bill, 2014’ was placed in Parliament on Monday, which seeks to encourage the rural people to save their money for the future needs.
Finance Minister AMA Muhith placed the bill in the House, which has been sent to the relevant Parliamentary Standing Committee for further scrutiny.
The committee has been asked to submit its report within 15 days.
As per the bill, the government’s share in the Bank will be 51 percent while the rest 49 percent share will be owned by member cooperative societies of the “One House One Farm” project.
The bank’s authorized capital will be Tk 1,000 crore. The bank will have 10 crore shares of Tk 100 each. The paid-up capital of the Bank will be Tk 200 crore.
The Tk 1,342 crore fund of the “One House One Farm” project will be transferred to the new bank intended to help alleviate rural poverty.
The government can raise the paid-up and authorized capital through gazette notification while the credit holders will transfer their shares to credit holders of same range.
The proposed Palli Sanchay Bank will be governed under the Banking Companies Act and controlled by the central bank.
The head office of the Bank will be situated in Dhaka. After getting the approval from the Bangladesh Bank, the Palli Sanchay Bank can set up its regional offices and branches across the country.
There will be a 16-member Board of Directors and the chairman of the Bank will be from the Board members selected by the government.
Of the total number, seven directors will be selected from the shareholders from the division level associations of the “One House, One Farm” project, each represented by individuals.
Nine directors will include a representative from the Finance Division, a member of Rural Development and Cooperatives Division, director general of Rural Board, the managing director of the Bank and four experts on rural economy and macro-financing.
The tenure of the Board will be three years. Board members can be appointed for maximum two consecutive terms.
The board of directors will appoint managing director (MD) with the approval from the central bank. The MD can serve until he is 65 years.
The bill says the bank’s default borrowers will be served a 15-day notice for the repayment. Loans will be recovered under the Public Demands Recovery Act 1913.
Audit will be conducted by two firms enlisted by Bangladesh Bank. The board will submit audit report to the central bank within three months after the end of a financial year.
If a borrower used false information to get loans from the bank, he/she would get one-year imprisonment or Tk 50,000 fine.
Though the bank is initiated to be established like the Grameen Bank, the basic difference of the proposed bank is that no individual would be the member of the bank. Only the societies will be the member of the proposed bank.
The borrowers of micro credit system would not need to submit any security to get loan. However, the borrowers who would like to get huge amount of loan will have to provide collateral.
The initiative has been taken to deposit the savings of rural societies and utilize the same properly for the development of the rural areas of the country.
Palli Sanchay Bank Bill placed in Parliament