The Ministry of Finance (MoF) has formed a high-powered committee to review a proposal to include readymade garment (RMG) workers in the ‘micro-savings programme’ now being operated for the members of ‘One Home, One Farm’ project. Officials said Palli Sanchay Bank (PSB), which operates the programme, made the proposal to encourage the RMG workers in developing saving habits. But Bangladesh Bank argued that the bank, which is dedicated to operate in the rural areas, cannot operate in the urban areas where the RMG workers live in. The government has formed the committee to review the PSB proposal to include RMG workers in the scheme, PSB chairman Mihir Kanti Majumder told the FE. Officials said the committee would prepare a concept paper suggesting whether the micro-savings scheme should be launched for the RMG workers, and the provisions of the Palli Sanchay Bank (PSB) Act needed to be revised to facilitate its operation by the bank. The concept paper would also suggest formation of a co-operative society. Besides, the Department of Co-operative Society would prepare a separate concept paper on the scheme. “We have decided to prepare the concept papers to find ways and means of launching the scheme,” a high official told the FE. The committee has been asked to submit the concept paper to the Bank and Financial Institutions Division as early as possible. Earlier in a letter to the MoF, Bangladesh Bank had communicated a different view that it is out of purview of a specialised bank like PSB, which was established only to provide banking services to the poor and underprivileged section of the people specially living in rural areas. It said the bank has got licence for carrying out banking activities in rural areas, not in urban domain. It will work only for the welfare of the members of the ‘One Home, One Farm’ scheme. The central bank pointed out that most of the garment factories are located in the urban areas and the workers live near the factories. Thus, neither the apparel factories nor their workers fall within the purview of the PSB. It also pointed out that the cash incentives are being given to apparel factory owners to support their business. But, they would not agree to pay 50 per cent of the amount to the workers’ welfare fund. The government has formed the bank by converting the ‘One Home, One Farm’ project and turned each of the offices of the association under the project into branches. Prime Minister Sheikh Hasina inaugurated 100 branches of the bank at a time through video conference on June 22 this year. The bank is to work with the members of the associations for their welfare through collecting deposits and providing loans for investment in businesses. The bank encourages the association members to deposit savings, and provides loans with or without collateral at less than 10 per cent rate of interest. At present, there are some 40,101 associations under the project with around 2.4 million members-their savings reached over Tk 7.0 billion so far. An official at the MoF said the PSB in a letter to the ministry proposed to include four million readymade garment (RMG) workers in the micro-savings programme to help develop their savings habit. He argued that it would help bring the RMG workers directly in the financial sector, and facilitate the workers to bring changes in their lifestyle. Mr Majumder proposed to operate the micro-savings programme also in urban areas for the benefit of the apparel sector workers. He also suggested depositing half the cash incentives of around Tk 15 billion the government spends on the apparel sector annually to the RMG workers’ welfare savings fund.
