Deposits in micro-savers' accounts rise 12%

Deposits in accounts opened with an initial deposit of Tk 10/50/100 for the marginalised people, excluding the ones for school banking and working street urchins, increased by 12 percent year-on-year in the July-September quarter of 2023.

The deposit in the no-frills accounts (NFAs), which require neither a minimum balance nor any service charge/fee, stood at Tk 3,849 crore after the September quarter.

However, the September quarter figure was 6.81 percent lower than the previous quarter, according to Bangladesh Bank data.

In September 2023 quarter, the banks in Bangladesh had over 3.11 crore no-frills accounts and the number stood at 2.7 crore excluding such accounts for school banking and street urchins or working children.

The accounts have been opened under various initiatives taken by the Bangladesh Bank to ensure financial services for the people of all segments of the society.

Relatively higher interest rates than the existing savings rates are offered for the no-frills accounts, the target group of which include farmers, garment workers, extreme poor and the beneficiaries of the social safety net programmes etc.

As on September 30 of last year, individuals with Tk 10/50/100 accounts have received a cumulative amount of

Tk 627.44 crore as credit from both the Tk 200 crore and Tk 500 crore refinance schemes for the NFA owners.

The no-frills accounts also play a significant role in the distribution of foreign inward remittances.

In September 2023 quarter, these accounts received Tk 27.47 crore as foreign remittances.

The cumulative amount of foreign remittances received through these accounts by the end of the reporting quarter reaches Tk 642.68 crore, which is 4.47 percent higher than previous quarter.

The NFAs also include school banking accounts where students under the age of 18 years can open bank accounts with an initial deposit of Tk 100 only.

The number of Tk 10 accounts for the farmers remains the largest component of the NFAs, contributing 38.12 percent of the total Tk 10/50/100 accounts.

The accounts for the beneficiaries of the social safety net programmes are the second largest component here, which constitute 36.91 percent of the total NFAs.

The extreme poor own 13.15 percent of the total no-frills accounts.