Rajshahi Krishi Unnayan Bank (RAKUB)
Bangladesh economy is predominately an agrarian one and dependent on agriculture is considered to be the mainstay of economic life of the people. 85% people of our country are depending upon agriculture directly and indirectly. Major portion of National Income comes from agriculture and development of this country depends upon the development of agriculture. But the financial conditions of the farmer of our country are not satisfactory.
The farmers of this country were oppressed in various ways at the time of British Rule. The indigenous moneylenders and other landlords supplied credit to produce crops and for other purposes to the farmers and many farmers lost their belongings due to not repay their debt. They took “Dadan” from moneylender and when they would repay the money with interest, they would become landless day by day. To ease this situation the Indian British Government introduced the Taccavi loan system. The Indian British Govt. also took a step to disburse agicredit for the socio-economic development of the small and marginal farmers of Bengal in 1932, which was continued to 1935.
After partition of India and birth of Pakistan, then Central Govt. of Pakistan “Agriculture Development Finance Corporation (ADFC)” was established in 1952. But soon it appeared that ADFC was moving slowly due to finance only the long-term schemes for development purposes and the minimum size of a loan was Rs 3000. Agricultural Bank of Pakistan was established under the agricultural Bank act. 13 of 1957.
Control of flood, introduction and increase in demand of new qualified rice and other crops, the increment of demand of the people towards the institution credit specially SACP or as a result of circulating special credit program amounting to Tk. 1 core, etc. have influenced many farmers to be Bank oriented. Since Bangladesh is an Agro-based country. The demand for the loan of Krishi Bank has been increased remarkably. It becomes very difficult for Dhaka based head office of Krishi Bank to managed agri-loan in the remote areas of the country. That is why, then the Govt. felt to decentralize the Krishi Bank in the divisional areas. The people of the Northern areas of Bangladesh are lagging behind in all respects than other parts of the country. For this reason RAKUB established at 15 March in 1987 with the ordinance No. 58 of the president. Its head office is located in the divisional city of Rajshahi. It is a state-owned specialized Bank.
1.2 General concept of Rakub:
RAJSHAHI Krishi Unnayan bank (RAKUB) a state owned financial institution was established by the president’s order no. 58 of 1986. The bank started functioning on March 15 1987. RAKUB took over the operations of Bangladesh Krishi bank (BKB) within the administrative division of Rajshahi along with its assets and liabilities.
The north west-region comprises of 16 districts of entire Rajshahi administrative division with an area of 34513 sq. km. and estimated population of 2705 million. The region is the driest and poorest area with a high population density and low rate of urbanization (13%). poverty is concerted in the countryside with 59% of rural population suffering from various degrees of deprivation. Gross Regional product per capital estimated at Tk.7400 in 1993-94 the lowest of the four major regions in Bangladesh.
To overcome those problems and to improve the condition of the poor, RAKUB was established in 1987. RAKUB is playing a vital role both in agricultural and industrial developments as well as eradication of poverty.
1.3 Historical background of RAKUB:
The Govt. of Pakistan established the agriculture development finance corporation (ADFC) in 1952, it became agricultural development bank of Pakistan (ADBP) in February 1961.on 16th December 1971, the ADBP became Agriculture development Bank of Bangladesh (ADBB)...