School Banking Programme Expands to 26 Thousand Schools

In a landmark move to nurture financial literacy and cultivate saving habits among young learners, Bangladesh’s school banking initiative has now been extended to nearly 26,454 educational institutions nationwide. According to the latest data from Bangladesh Bank, over 48 million students are now account holders under this programme, collectively depositing more than BDT 21,700 crore. Out of more than 400,000 schools across the country, the scheme has emerged as a crucial platform for instilling early financial discipline and awareness among students.

Under directives issued by Bangladesh Bank, all branches of commercial banks have been instructed, since March this year, to integrate at least one educational institution into the school banking programme. The banks are tasked with organising regular financial education sessions for students, simplifying account opening procedures, and ensuring smooth transactional operations. In addition, they are encouraged to undertake special initiatives aimed at enhancing students’ proficiency in digital and technological banking. Each branch is required to submit quarterly progress reports to the central bank, ensuring transparent monitoring and effective evaluation of the initiative.

Recent statistics reveal that 52.74% of school banking accounts have been opened in rural areas, while 47.26% are in urban centres, including the capital city, other city corporations, and municipal regions. Student participation is almost equally balanced by gender, with 50.81% male and 49.19% female students actively engaged. Of the 61 licensed banks in the country, 59 are currently operating school banking programmes.

Bangladesh Bank has also introduced a special arrangement by which student accounts are automatically converted into standard savings accounts upon reaching the age of 18, with over 1,187,000 accounts having already undergone this transformation. Each branch is set an annual target of opening at least 300 new student accounts, with a specific goal of 100 accounts for the month of September alone.

Prior to 2010, only individuals over the age of 18 could open bank accounts. The school banking initiative has democratized access, allowing students to open accounts using a school ID and an initial deposit of BDT 100, with parental consent mandatory for minors under 18.

This programme is far more than a banking exercise; it represents a strategic investment in the financial empowerment of Bangladesh’s youth. By fostering saving habits, promoting financial literacy, and enhancing digital skills, school banking is equipping students for a secure and self-reliant future, thereby laying the foundation for a more inclusive and sustainable economy.