Banking yet to begin at Palli Sanchay Bank

 Around seven-and-a-half months after its inauguration by Prime Minister Sheikh Hasina, Palli Sanchay Bank (PSB) is yet to begin its banking activities. It is a specialised bank that was established by converting the ‘Ekti Bari, Ekti Khamar’ (EBEK) project under the Rural Development and Cooperatives Division (RDCD).
According to the local government and rural development (LGRD) and cooperative ministry sources, the authorities have failed to start the PSB’s banking functions due to lack of necessary equipment and software. Hence, they still have to conduct its banking operations through three private banks. If the bank starts functioning, the ministry can bank with the PSB and save a huge amount of government funds, the sources added.
Around 5,000 officials, who were absorbed by the bank from the EBEK project following the PSB law, are allegedly whiling away their time instead of cooperating with the project authority ever since it was extended to June 2020, sources said. 
The EBEK project authority has now started the process of recruiting more employees to run its functions smoothly, said project officials. 
EBEK project director Akbar Hossain told this correspondent that the project authority was trying to run it smoothly. “But the officials who had served in the EBEK project are not cooperating with them. As a result, project activities are being hampered,” he said.
“The project authority has sent a recruitment notice to appoint new officials and employees for the project. The recruitment process for the first phase is underway. A new recruitment notice would also be put up soon to appoint the necessary employees. Hopefully, the new phase of the project soon runs smoothly,” he added.
“If the bank starts functioning, the projects of the bank will be run through it. Until then, the projects will be run through the previous three banks—Bank Asia Ltd, Bangladesh Commerce Bank (BCB), and United Commercial Bank (UCB),” the project director said.
According to PSB and EBEK officials, the PSB authority is yet to complete its officials’ training and collecting the necessary software. The PM inaugurated the bank’s 100 branches officially on June 22, 2016. 
Akbar Hossain said the project authority is trying to collect banking software from different entities. He hoped that it would be possible to collect all software packages soon.
The government enacted the Palli Sanchay Bank Law, 2014, for setting up a bank in rural areas. Its paid-up capital is Tk. 200 crore, of which Tk. 120 crore is to be provided by the government. The rest will come from the project fund.
There are around 40,360 rural societies under the project, which were formed in its last phase. The project authority has already started forming new societies in its new phase. More than 60,000 new societies will be formed under the project in its new phase.

The authority is registering the societies under the new project rules instead of registering them under the Department of Cooperatives (DoC). 
The Banking and Financial Institution Division appointed Mihir Kanti Majumder, former secretary to the RDCD, as its chairman. His tenure is likely to expire in September.

Banking yet to begin at Palli Sanchay Bank

Around seven-and-a-half months after its inauguration by Prime Minister Sheikh Hasina, Palli Sanchay Bank (PSB) is yet to begin its banking activities. It is a specialised bank that was established by converting the Ekti Bari, Ekti Khamar (EBEK) project under the Rural Development and Cooperatives Division (RDCD). According to the local government and rural development (LGRD) and cooperative ministry sources, the authorities have failed to start the PSBs banking functions due to lack of necessary equipment and software. Hence, they still have to conduct its banking operations through three private banks. If the bank starts functioning, the ministry can bank with the PSB and save a huge amount of government funds, the sources added. Around 5,000 officials, who were absorbed by the bank from the EBEK project following the PSB law, are allegedly whiling away their time instead of cooperating with the project authority ever since it was extended to June 2020, sources said. The EBEK project authority has now started the process of recruiting more employees to run its functions smoothly, said project officials. EBEK project director Akbar Hossain told this correspondent that the project authority was trying to run it smoothly. But the officials who had served in the EBEK project are not cooperating with them. As a result, project activities are being hampered, he said. The project authority has sent a recruitment notice to appoint new officials and employees for the project. The recruitment process for the first phase is underway. A new recruitment notice would also be put up soon to appoint the necessary employees. Hopefully, the new phase of the project soon runs smoothly, he added. If the bank starts functioning, the projects of the bank will be run through it. Until then, the projects will be run through the previous three banksBank Asia Ltd, Bangladesh Commerce Bank (BCB), and United Commercial Bank (UCB), the project director said. According to PSB and EBEK officials, the PSB authority is yet to complete its officials training and collecting the necessary software. The PM inaugurated the banks 100 branches officially on June 22, 2016. Akbar Hossain said the project authority is trying to collect banking software from different entities. He hoped that it would be possible to collect all software packages soon. The government enacted the Palli Sanchay Bank Law, 2014, for setting up a bank in rural areas. Its paid-up capital is Tk. 200 crore, of which Tk. 120 crore is to be provided by the government. The rest will come from the project fund. There are around 40,360 rural societies under the project, which wereformed in its last phase. The project authority has already started forming new societies in its new phase. More than 60,000 new societies will be formed under the project in its new phase. The authority is registering the societies under the new project rules instead of registering them under the Department of Cooperatives (DoC). The Banking and Financial Institution Division appointed Mihir Kanti Majumder, former secretary to the RDCD, as its chairman. His tenure is likely to expire in September.