Dutch-Bangla Bank Drops Plan to Increase Minimum Balance Limit

Dutch-Bangla Bank, a private bank in Bangladesh, recently withdrew its decision on Sunday, February 8, to increase the minimum balance or minimum deposit rate for savings accounts, In the face of customer objections, 

As a result, in the case of a savings account, a customer has to keep only 500 rupees as a minimum balance as per previous rule.

Abul Kashem Mohammad Shirin, the bank's chief executive officer and managing director, told the BBC that Dutch-Bangla Bank had backtracked on plans to change its savings account and that the decision had been officially overturned on February 8.

What change did Dutch-Bangla Bank want?

Earlier this year, Dutch-Bangla Bank decided to split the savings account into two - one would be Savings Plus, and the other would be Savings Regular.

Customers with Savings Plus account will get some additional benefits from the bank on priority basis.

These benefits include providing quick service without standing in line when going to any branch of the bank, various services including increasing the limit for withdrawing money from ATM booths.

For this a customer has to have a minimum balance of five thousand rupees.

On the other hand, as a regular savings, you have to have a minimum of Rs.500 as before, but the customer will not get any additional benefit.

With such a decision, the bank wants to know by sending a letter to the customers of their savings account, who want to get the benefit of Savings Plus account.

Those who want to get this 'more' benefit should inform the bank. In that case, the scheme will be launched from next May.

But if the customer does not want, then he has to inform the bank within 90 days of receiving the letter.

Adverse reactions among customers

There has been a huge response from customers on this issue. Writing against it has been going on on social media for the last few days.

It is argued that if the minimum balance reaches 500 to 5,000, many low-income earners will not be able to keep it.

Many fear that if the minimum balance of Rs 5,000 is not maintained, their savings account may be closed.

Tania Ferdousi, a teacher at a private school in Dhaka, said, "My salary goes to my savings account at Dutch-Bangla Bank. I have not opened a new salary account for my salary. I'm in a lot of trouble. That's why I was shocked to see her writing on Facebook. "

He was assured that he would not be worried from the branch where he contacted the account, but he could not rest assured.

Many customers like him.

In such a situation, Dutch-Bangla Bank has decided to cancel their plan.

Dutch-Bangla Bank CEO and Managing Director. Shirin told the BBC: "We have decided to cancel the plan. But the new decision did not mean that the account would be closed or something like that if we did not keep the minimum of five thousand rupees. The letter we sent did not say anything like that."

He thinks that misinformation has been spread about the matter.

Now the bank has moved away from that decision in the face of customer objections.

A statement from Dutch-Bangla Bank on Sunday said, "By keeping the salary and student account of Dutch-Bangla Bank unchanged, the savings account can be divided into two products only to provide more benefits to the customers as a saver. Letters have already been sent to some customers from the bank's branches.

The statement further said, "At the request of some esteemed customers, the bank authorities have decided not to split the savings account into two products and keep it as it is at present. "

Mr. Shirin said that as a result, the minimum balance for all customers with savings accounts will now be the same as before at Rs 500.

"Savings accounts and other banking services will remain unchanged."

How much money do you have to save?

There was a time when it did not cost any money to open a bank account.

But over time different banks have included the condition of depositing a certain amount of money in the bank account in case of savings account as per their own policy and requirement.

Usually a certain amount of money is deposited in the bank when opening a customer's account, mainly to keep the account regular.

However, the customer gets interest on the deposited money at a fixed rate annually as his saver.

At the same time, if the bank account is closed, the full amount of the minimum balance is refunded to the customer.

Meanwhile, the central bank of Bangladesh says that Bangladesh Bank has no specific instructions in this regard.

Bangladesh Bank spokesperson Sirajul Islam said, "The central bank has no obligation in this regard. But the general directive is that nothing should be imposed on the customer, and the customer's account should not be closed as a result of any new policy."

He said Bangladesh Bank does not interfere in determining the minimum balance of any bank.

What is the minimum balance required in a bank?

Most of the banks that have savings accounts for different categories of customers like students, farmers, garment workers do not charge any money. Besides, it does not cost money to open a salary account of a professional.

But it takes money to open a savings account.

However, the money deposited at the time of opening an account in private sector banks can be withdrawn again after one day.

A certain amount of money must be deposited in certain banks.

It usually takes 500 rupees to open a savings account in state-owned banks in Bangladesh.

Commercial banks charge from Rs.500 to Rs.1 lakh, which is deposited in the bank as a minimum balance.

Among the notable banks, BRAC Bank charges Tk 50,000 to open a savings account at any branch in Dhaka and Tk 5,000 to open an account at a branch outside Dhaka.

It costs Rs 5,000 to open a savings account at Eastern Bank, IFIC Bank and Rs 10,000 to open a savings account at AB Bank.

Besides, it will take one lakh rupees to open a savings account in Standard Chartered Bank among foreign banks.

At present, there are a total of 61 state-owned, commercial and specialized banks in Bangladesh.

The number of bank accounts is about ten crores.

However, many people in Bangladesh still do not do financial transactions formally.

Dutch-Bangla Bank has the largest network of private banks in Bangladesh.

At the moment, there are more than ten thousand ATM booths across the country, more than half of which are owned by Dutch-Bangla Bank.

Source: BBC Bangla