Banks widen network to villages

Banks are expanding their presence into rural areas, helping the government to enhance financial inclusion by bringing un-banked people under their coverage, banking people said.
"The banking authorities have been increasing their footing rapidly. This has been possible mainly, thanks to efforts by the Bangladesh Bank (BB)," a senior banker said.
According to data available with the BB, both private and state-owned banks opened a total of 9,040 branches across the country by the end of December last.  Of them, 5,150 were opened in rural areas and 3,890 in urban areas.
The total number of branches was 8,685 as of December, 2013. Of them, 4,962 were in rural areas and the remaining 3,723 in urban areas, official data showed.
"The central bank is sincerely trying to provide banking services to the rural areas and increase financial inclusion for the sake of poverty reduction," a senior central banker said.
He, however, said the banks continued to enhance penetration in rural areas with the help of their people in line with a BB guideline.
Earlier, the central bank had introduced the guideline for bringing un-banked people under the banking network.
As per the guideline, 50 per cent of the bank branches to be opened in a calendar year, must be in rural areas.
The Private Commercial Banks (PCBs) have beefed up opening of rural branches, a private banker said.
Rural banks have traditionally supported local economic development and growth by supplying funds to local businesses. The willingness and ability of commercial banks to deliver agricultural and rural loans efficiently will play an important role in maintaining and expanding rural economies.
The banking sector is contributing to the expansion of the rural economy, which boosts the country's overall economy, an official said.
The official added that innovations in mobile banking in addition to access points by the central bank through the commercial banks have brought revolution of financial transaction in rural areas.
Presently, over 80 per cent people of the country are getting banking services, a BB official said.
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