In its latest pro-active move on corporate social responsibility (CSR) of financial institutions, Bangladesh Bank (BB) has instructed the latter to bring the poor and underprivileged section of the children under banking services. The central bank very recently issued instructions to all banks to allow street children and child workers open bank accounts with a minimum initial deposit of Tk 10 only and thus bring them under an institutional financial system. The initiative aims at building the habit of savings among them and protecting their hard-earned income. The BB hopes the move will reduce the trend of their derailment by protecting their financial interest.
Apart from reforming and streamlining banking services throughout the country, the central bank, in recent years, has been instrumental in implementation of many laudable ventures like banking services for farmers, sharecroppers and some other underprivileged people with the minimum deposit of Tk 10 only. These seem to be working fairly well and a vast section of population who dared not go to a bank are now regular customers. They receive various services and facilities, courtesy of banks. Particularly the school children's savings scheme, introduced in November 2010, received widespread response from the target group, and according to media reports the total savings under this scheme has stood at several billion takas. Under the programme, children can bank at school and it creates a savings mentality among them. Thus students can build up a capital for their occasional school expenses and also for higher education at home and abroad or even for matrimonial purpose. The deposited money under the school banking will not only help accelerate financial inclusion and financial literacy among small children but also secure financial stability because such deposits grow at the banks for quite some time.
School banking shows a bright prospect because customers have a root and they are traceable or they can track down their accounts even after years when they are no more students and thus there is no possibility that the account holders will totally lose the money they once saved. Street children on the contrary are rootless and floating. However, the Bangladesh Bank in its guidelines on the street children's saving scheme says that the hapless children will be organised under the umbrella of designated NGOs and the NGOs will open and operate the accounts for street children and child workers. But will it be practically possible for the NGOs to keep track of such children who frequently change locations-- sometimes within the city, and sometimes from one city to another when their whereabouts mostly remain unknown?
Illiterate in most cases, they cannot maintain records or documents of their accounts. They also have no safe place to keep papers or documents. That a bank will treat them nicely and with a helping attitude to settle claims is far from expectation. Further the central bank's circular says that there will be no need for a nominee to open such accounts. This sounds good, but in the event of death or missing of the customer, where will the money go?
Yet the concept that the hard-earned money saved by the poor children and accumulated by NGOs or banks will be utilised in social business or any welfare programme for their benefit looks good. But to make the programme a success, there is a need for overcoming the practical problems facing them.
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