OVERVIEW OF RAJSHAHI KRISHI UNNAYAN BANK

Rajshahi Krishi Unnayan Bank (RAKUB) was established by the President's Ordinance No. 58 of 1986 (later replaced by 'Rajshahi Krishi Unnayan Bank Act, 2014'). It took over the operations of 253 branches of Bangladesh Krishi Bank of the Rajshahi administrative division (presently Rajshahi and Rangpur divisions) and then started functioning on March 15, 1987. There are 383 branches of the bank including LPO and Dhaka branch among which 194 are in Rajshahi and 187 in Rangpur division. Number of rural branches are 333 while urban 50. RAKUB is the only specialized nationalized bank having its head office outside Dhaka, i.e. at Rajshahi.

Authorized capital of the bank as determined by the government amounts to Tk. 10000 million and paid up capital Tk. 8250 million.

To steer the bank in accordance with the government policies there is a Board of Directors comprised of the chairman and ten other directors as appointed by the government. Besides, there is a three-member executive committee for deciding on emergency policy matters.

Though a specialized bank, RAKUB performs most deposit banking activities like commercial banks. Special products of the bank include deposit schemes like

• School Banking Account
• RAKUB Daily Profit Account (RDP)
• Special Notice Deposit (SND)
• Savings Account
• Rakub Premium Current Account
• Interest Free Savings Account
• RAKUB Millionaire Deposit Scheme-2 (RMDS-2)
• RAKUB Monthly Savings Scheme-2 (RMSS-2)
• RAKUB Deposit Scheme (RDS)
• RAKUB Five Lakhs Deposit Scheme (RFLDS)
• RAKUB Double Money Scheme (RDMS)
• RAKUB Monthly Profit Scheme (RMPS)
• Fixed Deposit Receipt

Credit Programs

RAKUB caters to financing of all the agricultural activities including

• SMALL & MEDIUM ENTERPRISES (SME)
• BB Refinance Scheme 10TK Account Holder (Short Term)
• Revolving Crops Credit (RCC)
• Farmer's Credit Limit (FCL)
• Special Motivational Refinancing Scheme for Agricultural sector
• Agricultural Loan at 4% Concession Rate
• Special Credit Program for CMSME Sector
• SMALL & MEDIUM ENTERPRISES (SME)
• Agricultural Loans Medium Term General
• Agriculture Loan Medium Term Green Banking
• BB Refinance Scheme 10TK Account Holder (Medium Term)
• Agricultural Loans Medium Term for Freedom Fighter

The bank pays importance to financing poverty alleviation and employment generation activities, SME and other off-farm activities. The bank disburses 60 percent of its annual target for crop production. The bank’s outstanding loan amounts to Tk. 5,490.68 core and number of borrowers are 7,97,193 (as on 03.01.2020).

1. North-west Crop Diversification Project (NCDP)

The ADB financed project finances for high-value crop production. Four NGOs namely BRAC, Proshika, RDRS and GKF draws loan from RAKUB and relends among farmers.

2. Small Enterprise Credit Program (SECP)

The project is jointly funded by the Royal Norwegian government and RAKUB. It aims at promotion of entrepreneurship in agro-based small enterprises and non-farm activities. The main objective of the project is to create employment through development of small enterprises. It gives priority to financing the women entrepreneurs. Maximum credit limit for a single enterprise is Taka 0.50 million. The project provides training to the entrepreneurs. A process is undergoing for converting the project into a subsidiary company of RAKUB.

Banks in Bangladesh have witnessed sea change in use of information technology during the recent years. To cope with the advancement RAKUB has intensified IT activities. Rajshahi Krishi Unnayan Bank has implemented Online Real-Time Core Banking Solution (CBS) in all branches of the bank including head office. At Present all branches (total 383) of the bank including head office have been used online banking software.