The number of 'No-Frill Accounts' (NFAs) in the country continues to rise, reflecting the ongoing efforts to expand financial inclusion among low-income people, students and working children.
According to the Bangladesh Bank (BB) latest quarterly report, as of December 2024, the total number of NFAs reached over 32.59 million with deposits amounting to Tk 68.23 billion.
NFAs, which include accounts opened with initial deposits as low as Tk 10, 50 or 100, have shown a steady increase.
The number of such accounts (excluding school banking, street urchins, and working children accounts) stood at more than 28.12 million in the December quarter, holding cumulative deposits of over Tk 46.85 billion.
This marks a 0.90-percent rise compared to the previous quarter and a 4.22-percent increase year on year.
Among the different categories of Tk 10/50/100 accounts, those under Social Safety Net Programmes make up the largest share, accounting for 37.12 per cent of total accounts. Farmers' accounts follow closely, comprising 36.95 per cent of all NFAs.
Stakeholders believe that while political instability had affected the banking sector in recent months, the situation has improved, restoring public confidence in banks.
This has encouraged low-income people to deposit their savings again, they stated.
Additionally, the BB has introduced several measures to stabilise the financial sector, further boosting trust in the banking system, according to them.
NFAs play a critical role in facilitating credit access for the marginalised communities.
By December 2024, account holders had received a cumulative Tk 8.96 billion in credit from the Tk 7.50 billion refinance schemes designed for No-Frill Account owners. This financial support is helping individuals sustain and improve their economic wellbeing.
Additionally, NFAs are crucial for channeling foreign inward remittances. By the end of the reporting quarter, the cumulative remittance inflow through these accounts had reached Tk 7.72 billion, underscoring their role in financial empowerment and economic stability.
The quarter also saw 10,439 new school banking accounts opened, contributing to a 0.24-percent growth in this segment.
The rise is attributed to the resumption of school banking conferences across the country, which has encouraged more students in participating in the formal banking system.
Conversely, street urchins and working children accounts experienced a slight decline of 0.02 per cent from the previous quarter.
Despite this, 19 banks collectively facilitated the opening of 39,634 such accounts, reaffirming their commitment to financial inclusion for vulnerable children.
The consistent growth in NFAs highlights the financial sector's dedication to integrating underprivileged groups into the banking system.
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