BRPD Circular No. 05: Banking Services for Street Urchin and Working Children

Ref: BRPD-Reg-Policy-Dept Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. March 09, 2014 BRPD Circular No. - 05 Date: ----------------- Falgun 25, 1420 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Providing banking services for street children and working children/adolescents. In order to improve the standard of living of the poor and disadvantaged population of the country by bringing them under the ambit of the banking sector, Bangladesh Bank is continuously taking new initiatives. In this continuity, it is necessary to take initiative to open bank accounts with the objective of creating saving propensity among working children/adolescents residing in various places such as slums, roadsides, train stations, bus stands, launch ghats, and footpaths, protecting their hard-earned assets, reducing the tendency to go astray, and promoting their greater welfare. With the aim of creating better employment opportunities for these street children and small working children in the future and bringing them under the scope of banking services, a decision has been taken to open bank accounts in their names for a consideration of 10 (ten) Taka. The following matters must be followed for opening savings accounts in the names of street children and working children/adolescents for their welfare:

(1) Bangladesh Bank will create a list of those Non-Governmental Organizations (NGOs) interested in managing bank accounts for street children and working children/adolescents. Interested NGOs are advised to apply through any scheduled bank to the Green Banking and CSR Department of Bangladesh Bank for inclusion in this list. In this regard, the reputation, credibility, experience, infrastructure facilities, etc., of the NGOs will be considered.

(2) The responsibility of managing accounts on behalf of street children and working children/adolescents shall be entrusted to at least 02 (two) officials of the designated NGO. Among these 02 (two) officials, 01 (one) shall be an official concerned with the Account Department and the other shall be a field inspection official. The officials managing bank accounts for working children/adolescents will be appointed subject to the approval of the relevant NGO's Board of Directors/Trustee Board.

(3) Although the responsibility of managing bank accounts for street children and working children/adolescents lies with at least 02 (two) officials of the relevant NGO, the relevant NGO shall bear the responsibility for deposits and withdrawals related to transactions in these accounts. This shall be considered as the liability of the said NGO. A bilateral agreement will be made between the relevant bank and the NGO regarding this matter.

(4) Savings bank accounts (Savings Accounts) in the names of street children and working children/adolescents will be opened. These accounts will be operated (managed) by the two NGO representatives. The signature of the child/adolescent account holder must be present in the corresponding account form and passbook.

(5) Subject to the approval of the relevant NGO's Board of Directors/Trustee Board, the officials managing the account may change if necessary.

(6) Accounts of street children and working children/adolescents can be operated in any manner, whether current or savings. However, profit-sharing benefits cannot be provided against these accounts, meaning no debit/credit card can be issued.

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(7) In the case of Customer Identification Card (CIC) with photo, maximum information should be collected. However, the account operators (NGO officials) must ensure proper CIC.

(8) The relevant NGO will take necessary measures to collect birth registration certificates for determining the age of street children and working children/adolescents.

(9) Nominees will not be applicable for these accounts of street children and working children/adolescents. Formalities regarding this must be completed when the account holder becomes an adult.

(10) Upon the account holder reaching the age of 18 (eighteen) years, the officials of the NGO managing the account will be deemed relieved of their duties, and the account holder will be able to operate the bank account.

(11) No service charge or fee shall be charged from these accounts.

(12) Profit shall be payable twice a year (in June and December) at the highest savings deposit interest rate based on the daily balance of the account.

(13) Details of deposits and withdrawals (including reasons for withdrawal) of these accounts of street children and working children/adolescents must be presented to the Board of Directors/Trustee Board of the relevant NGO on a quarterly basis and sent to the Green Banking and CSR Department of Bangladesh Bank. Banks will provide details of working children/adolescents' accounts free of charge to the respective NGOs on a quarterly basis.

(14) The relevant bank will send details of total deposits and withdrawals of accounts of street children and working children/adolescents on a quarterly basis to the Green Banking and CSR Department of Bangladesh Bank within the third week of the next quarter.

These instructions shall come into force immediately. Kindly acknowledge receipt. Yours faithfully, (Md. Anowarul Islam) Deputy General Manager Phone: 9530094