Rajshahi Krishi Unnayan Bank
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Rajshahi Krishi Unnayan Bank is a state-owned bank in Bangladesh, a specialized financial institution for financing the farmers of 16 districts of Rajshahi and Rangpur administrative divisions comprising the north-west Bangladesh. Established by the President's Ordinance No. 58 of 1986 the bank started functioning on 15 March 1987. The bank emerged as the government's aim of providing intensive care to agriculture of Rajshahi and Rangpur Divisions providing livelihood to 35 million people of the area. The region is full of agricultural potentials. The Rajshahi and Rangpur Divisions characterized by their surplus food grain production are popularly called the "granary of the country". Besides catering to agricultural credit, RAKUB, as Rajshahi Krishi Unnayan Bank is acronymed, renders deposit banking services through all its 368 branches including one in Dhaka and the rest 367 lying within its operational jurisdiction of Rajshahi and Rangpur. The headquarters of the bank is stationed at Rajshahi city, some 270 kilometer to the north of Dhaka.
Management of the bank is entrusted by the government to a seven-member board of Directors. Managing Director is the chief executive of the bank.
Activities of RAKUB
The bank takes pride in being the largest development partner in the northwest region of Bangladesh. RAKUB aims at overall development of farmers and all the sectors and sub-sectors of agriculture in this region. The bank also performs functions like financing agri-business and agro-based industries and poverty alleviation programs.
Authorized capital of the bank amounts to Tk 7500 million. Paid-up capital amounts to Tk 5700 million and reserve Tk 208.50 million as on 25 April 2010.
The Bank finances for production of all the summer and winter crops, horticulture & nursery etc. High yielding and high value crops and seeds production is particularly encouraged. Crop sub-sector alone occupies 60% of the lending budget of the Bank.
Livestock and Poultry
The Bank extends credit facilities for systematic and commercial livestock farming which includes dairy, beef-fattening, poultry, raising and setting up of hatcheries which in turn is expected to increase production of milk, meet and eggs, the main source of protein. As the marginal and small farmers access to mechanized farming is restrained by want of cash and collateral, the bank has a big lending window of draft animals for cultivation of land, transportation of agricultural produces and other farming activities.
The Bank attaches importance to use scientific method and modern technology in fish cultivation. It extends adequate credit support for excavation and re-excavation of ponds, round the year cultivation of species, which have rapid growth, cultivation of sweet water prawn and other fishes. The Bank makes use of expertise of the concerned government agencies for bringing more ponds/water bodies under cultivation and increasing productivity.
Irrigation Equipment & Farm Machinery
In today's technology-based farming of high yielding and high-value crops, mechanization of cultivation, irrigation and pest-control is indispensable. To cope with the situation financing power tillers, tractors, tube wells, power-pumps, fertilizer and pesticide application devices.
Agro-industry & Agri-business
The operational jurisdiction of the Bank is noted for its agricultural potentials. The Bank pays due importance to setting up agro-industries for preservation, processing and marketing of agricultural produces having backward linkage with basic sub-sectors of crop, fishery, livestock and forestation. Manufacturing and marketing of agricultural implements are also encouraged. Agro-industries for import sub situation are specially encouraged by offering moderate terms of financing.
The poverty-stricken area of north-west Bangladesh is characterized by comparatively lower rate of savings, inadequate capital accumulation and slim employment opportunities. The existing collateral-based banking system is also of little use in respect of extending support to the millions of landless people. To address the problem, the Bank has been financing collateral-free micro-credit for income and employment generation through its poverty alleviation credit programs.
The bank gives importance to accumulation of rural small savings through its branches. RAKUB renders all sorts of deposit banking services to its over one million valued customers. The bank operates deposit accounts like Savings Bank Accounts, Current Deposit ccounts, Short Notice Deposit Accounts & Fixed Deposit Account and different saving schemes.
Type of deposit account (with interest rate):
- Savings Bank Account (Urban Area) — 5.00 percent
- Savings Bank Account (Rural Area) — 7.00 percent
- Short Notice Deposit Account (SND) — 4-5.00 percent
- Current Deposit Account — 0.00 percent
- Fixed Deposit Receipt (FDR) Account
- from 1 months to below 3 months — 8.00 percent
- from 3 months to below 6 months — 8.50 percent
- from 6 months to below 1 years — 9.00 percent
- from 1 years to below 2 years — 9.25 percent `
- Krishok Sanchoy Scheme (KSS)
- RAKUB Sanchoy Scheme (RSS)
- RAKUB Double Money Scheme (RDMS)
- RAKUB Triple Money Scheme (RTMS)
- RAKUB Daily Profit (RDP)