Bangladesh Samabaya Bank Limited (http://www.bsbl.org.bd/) is mainly working for the country’s farmer who is the majority. Bangladesh is an agricultural country. About 85% of rural people earn their living from agriculture and, as such, great importance has been attached to the development of agriculture.
The poor farmers are deprived of credit facilities from any credit agency for the modernized and scientific cultivation of their land. Co-operative has, thus, a vital role to play for the development of rural people.
Bangladesh Samabaya Bank Limited (BSBL) (Oficial Website) is taking some responsibility for these poor farmers.
Bangladesh Samabaya Bank Limited
Co-operative Societies: Co-operative Society is an organization formed by a group of people having uniform heeds and interests. Ideally, it is formed on a voluntary basis and prorates on democratic principles.
A co-operative is organized to serve the interests of its members who pursue and promote the establishment of its objectives.
The co-operative method has come to the front all over the world for making and developing a system of rural credit. The success of co-operative lies with its members, their mutual relationship and understanding, trust in their leaders, and commitment to their organization.
A co-operative is a best-suited institution that can respond effectively to the social and economic needs of its members. Besides providing avenues for capital formation to the economy, co-operatives can also provide opportunities for self-employment and income generation.
With these ideals and principles co-operative system has spread in multilateral sectors in Bangladesh of which major sectors are as follows:
- Agricultural co-operatives formed mainly for providing agricultural credit and supplying agricultural equipment to the members;
- Milk Producers Co-operatives formed mainly for providing agricultural credit and supplying agricultural equipment to the members.
- Fisherman’s Co-operatives formed to free the fishermen from the clutches of middlemen who used to take maximum benefit of the catch making the fishermen as their borrowers;
- Multipurpose societies-for working in diversified fields, e.g., various types of business, consumer goods production and marketing, transportation, etc;
- Housing Societies to solve the housing problem of the members;
- Ashrayon, a co-operative based program for the rehabilitation of the poorest people of the society by providing strong houses and shelters capable of withstanding cyclone and tidal bore.
Co-operative Bank: After the liberation of Bangladesh in the year 1971, the East Pakistan Provincial Co-operative Bank assumed the position of a national level apex bank and was named as Bangladesh Jatiay Samabaya Bank (Bangladesh National Co-operative Bank). In the year 1977 in its annual general meeting, it was renamed as Bangladesh Samabaya bank Ltd.
Bangladesh Samabaya Bank Ltd., termed as “Lending arm” of the co-operative credit structure of the country, is of the great facility to the poor cultivators, artisans, etc who would otherwise be unable to obtain credit for the purchase of agricultural machinery, etc for development of land.
This bank, although under the general control of the Government through the Registrar of Co-operative Societies, is also under the financial discipline of Bangladesh Bank and, subject to inspection by it.
Co-operative Banking system
The Co-operative Societies are a three-tier system. At the top is the Bangladesh Samabaya Bank Ltd.; in the middle, the Central Co-operative Bank and Central Societies, etc. and, at the bottom, are the Primary Co-operative Credit Societies.
The Bangladesh Samabaya Bank receives its working capital through deposits from affiliated co-operative societies and the public. The Government also participates in the share capital of the Bangladesh Samabaya Bank limited.
The primary faction of the bank is to provide agricultural finance to the agriculturists through the central co-operative Bank which are spread all over the country and which in turn provide finance to the Primary Credit Societies affiliated to them.
The agricultural credits issued by the bank are of short, medium, and long terms. The short-term credit mainly issues in the shape of seeds, fertilizers, fuel, etc. for the cultivation of various types of paddy, jute, wheat, sugarcane, oilseed, potato, sweet potato, etc.
The medium-term loan is issued for the purchase of plow, cattle, and small agricultural implements and, the loans-term is provided through the Land Mortgages Banks and Urban/City co-operative banks for the redemption of old debts, purchase of agricultural machinery, and improvement of the land.
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