The Rajshahi Krishi Unnayan Bank (RAKUB) (Official website) was established under the Rajshahi Krishi Unnayan Bank Ordinance, 1986 (Ord. No LVIII of 1986). The operational jurisdiction of the bank is limited to the administrative Division of Rajshahi.
Prior to the establishment of RAKUB, the said Division was under the working jurisdiction of the Bangladesh Krishi Bank (BKB). The BKB provided credit facilities to agriculturists, persons engaged in cottage industries, etc. all over the country till the RAKUB started its function with effect from 15th March 1987.
In order to give special attention to the credit needs of agricultural and rural development activities of the Rajshahi Division, the government decided to establish a separate Krishi Bank for that Division and KAKUB is the result.
Rajshahi Krishi Unnayan Bank (RAKUB)
The Rajshahi Krishi Unnayan Bank (RAKUB) is a wholly Government-owned bank. It is subscribed by the Government from time to time according to requirements.
The general direction and administration of the affairs and business of the RAKUB are entrusted to its Board of Directors appointed by the Government for such period and on such terms and conditions as it may determine.
The Board is under a legal obligation to act on commercial considerations due to the interest of agriculture and cottage and other allied industries in the rural as well as urban areas.
The objectives of the RAKUB is the same as that of BKB in their respective areas of operation. The RAKUB started its function with the undertaking and officers and other employees of the BKB falling within the administrative Division of Rajshahi of the date of commencement of RAKUB ( Rajshahi Krishi Unnayan Bank) law.
All rules and regulations made under the BKB law, unless contrary to the RAKUB law, were declared effective for RAKUB. All these show that there is virtually no difference in the objectives, functioning, or otherwise between these two banks.
The RAKUB has the statutory authority of accepting money in deposit like BKB. The deposit mobilization program of the RAKUB is aimed at reducing the dependency on refinancing facilities of the Bangladesh Bank and to use its own fund for disbursing credit.
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