Government subsidy disbursement to small bank accounts surged in February 2026, reflecting higher fund flows under different social safety net programmes and a stronger shift towards digital delivery mechanisms.
According to the latest data from Bangladesh Bank, subsidy allocations to no-frills accounts (NFAs), generally opened with deposits of Tk 10, Tk 50 or Tk 100 for low-income and marginalised people, increased by 130.50 per cent in February compared to the previous month.
The subsidy flow to such accounts stood at Tk 4.12 billion in February, up from Tk 1.79 billion in January this year.
The central bank's data also showed that subsidy disbursement through these accounts amounted to Tk 2.91 billion in December 2025, Tk 3.99 billion in November 2025, Tk 2.24 billion in October 2025, Tk 2.04 billion in September 2025 and Tk 1.69 billion in August 2025.
Meanwhile, the number of social safety net-related NFAs increased marginally by 0.01 per cent to 9.82 million in February from January.
Of the total subsidy disbursement in February, urban areas accounted for Tk 2.52 billion, while rural areas received Tk 1.60 billion. Underprivileged and extremely poor people receive various government allowances and subsidies through these no-frills accounts, an initiative aimed at expanding financial inclusion and bringing unbanked people into the formal banking system.
Over the years, the government has increasingly used these accounts to disburse subsidies, allowances and other social safety net benefits directly to beneficiaries. Economists said the rise in subsidy transfers indicates the growing use of digital banking channels for social protection programmes.
Masrur Reaz, chairman of Policy Exchange Bangladesh, said the increasing use of no-frills bank accounts for subsidy distribution is a positive sign for financial inclusion and transparency.
"Direct benefit transfers through bank accounts help reduce leakages, improve accountability and ensure that government support reaches intended beneficiaries more efficiently," he said.
He also noted that the rise in subsidy disbursement reflects the government's growing reliance on digital financial channels for welfare payments.
However, he stressed the need to strengthen monitoring mechanisms and improve financial literacy among beneficiaries to ensure effective utilisation of the funds.
"Expanding access to banking services among low-income people can also create opportunities for savings, small-scale financial activities and broader participation in the formal economy," Dr Reaz added. The central bank introduced no-frills bank accounts to bring low-income and financially excluded people under the formal banking network.
These accounts can be opened with initial deposits of Tk 10, Tk 50 or Tk 100, enabling marginalised groups, including farmers and social safety net beneficiaries, to access banking services at minimal cost.
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