BB expands student banking to include youths up to 25
Business Desk :
Students up to the age of 25 will now be able to open bank accounts under the newly expanded Student Banking framework, as Bangladesh Bank has revised its earlier policy to widen financial inclusion among young people.
The central bank has also allowed student account holders to access credit cards, a facility that was previously unavailable under the scheme.
The updated guidelines were issued on Monday by Bangladesh Bank’s Financial Inclusion Department and circulated to the managing directors and chief executives of all scheduled banks.
Under the revised policy, the earlier School Banking programmed has been renamed Student Banking, reflecting its broader scope. Previously, only individuals below the age of 18 were eligible to open school or student banking accounts.
Under the new rules, anyone below 25 years of age can open a Student Banking account, which will be maintained as a savings account. Each student will be allowed to hold only one such account, although a new account may be opened if the previous one is closed due to a change of educational institution or other valid reasons.
For the first time, student account holders will be eligible to obtain credit cards, while debit cards will continue to be available. Bangladesh Bank has also significantly relaxed transaction limits. The monthly ATM withdrawal ceiling, previously Tk 5,000, has been raised to Tk 15,000, with scope to increase it to Tk 25,000 upon application by a guardian.
Monthly deposits can reach up to Tk 25,000, and the maximum account balance has been set at Tk 3 lakh. The policy also facilitates overseas education and income opportunities. Students going abroad for studies will not be required to open a separate student file or special account, as the Student Banking account may be used for international purposes in line with prevailing regulations.
In addition, legally earned foreign currency income, including remittances from freelancing, can be received through these accounts. For higher education needs, students may also access loans against a guardian’s guarantee to purchase necessary educational materials.
Once an account holder reaches the age of 25, the Student Banking account will be converted into a regular savings account with the customer’s consent. At that stage, full KYC (Know Your Customer) requirements must be completed, and all standard charges applicable to savings accounts will come into effect.
However, from the time a student turns 25 until the conversion is completed, no cash withdrawals or fund transfers will be permitted, except for account closure. Bangladesh Bank officials believe the expanded Student Banking policy will help bring more young people into the formal financial system, promote cashless transactions in educational institutions, and support students’ academic and professional development both at home and abroad.