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Discipline: Financial System
Subject: Financial Institutions
Category: General
Level: Intermediate
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Scheduled Bank vs. Non-scheduled Bank

What is Scheduled Bank?

Scheduled bank is a bank which, by notification in the official gazette, is declared as scheduled bank by Bangladesh Bank according to Article 36(2) of Bangladesh Bank Order, 1972.

In Bangladesh Bank website, scheduled bank and non-scheduled bank are defined as under1:

Scheduled Banks: The banks which get license to operate under Bank Company Act, 1991 are termed as Scheduled Banks.

Non-Scheduled Banks: The banks which are established for special and definite objective and operate under the acts that are enacted for meeting up those objectives, are termed as Non-Scheduled Banks. These banks cannot perform all functions of scheduled banks.

Criteria for a Scheduled Bank:

Bangladesh Bank may declare any bank to be scheduled bank under Article 36(2) of Bangladesh Bank Order, 1972 which is carrying on the business of banking in Bangladesh and which-

  1. is a banking company, or a co-operative bank, or a corporation or a company incorporated by or established under any law in force in any place in or outside Bangladesh;

  2. has a paid-up capital and reserves of an aggregate value of an amount not less than that required to be maintained under ধারা ১৩ of ব্যাংক কোম্পানী আইন, ১৯৯১ : Provided that in the case of a co-operative bank, an exception may be made by the Bangladesh Bank;

    It is mentionable that Bangladesh Bank, being empowered by the provisio under section 13(2) of the Banking Companies Act, 1991 and in consultation with the Government, through the notification no. BRPD(R ‐ 1)717/2008 ‐ 511 dated August 12, 2008 has refixed that the minimum Paid-up Capital and Reserve Fund of banking companies shall be Taka 400 crore, of which the paid-up capital shall be not less than Taka 200 crore.2

  3. satisfies the Bangladesh Bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors;

Number of Scheduled Bank:

There are 58 scheduled banks3 in Bangladesh who operate under full control and supervision of Bangladesh Bank which is empowered to do so through Bangladesh Bank Order, 1972 and Bank Company Act, 1991. Scheduled Banks are classified into following types:

  1. State Owned Commercial Banks (SOCBs): There are 6 SOCBs which are fully or mostly owned by the Government of Bangladesh. (In 2015, Government decided to treat BASIC Bank and BDBL as SOCB. )

  2. Specialized Banks (SDBs): 3 specialized banks are now operating which were established for specific objectives like agricultural development. These banks are also fully or mostly owned by the Government of Bangladesh. Probashi Kallyan Bank is the latest specialized scheduled bank4.

  3. Private Commercial Banks (PCBs): There are 40 private commercial banks which are mostly owned by the private entities. PCBs can be categorized into two groups:

    1. Conventional PCBs: 32 conventional PCBs are now operating in the industry. They perform the banking functions in conventional fashion i.e interest based operations.

      ii) Islami Shariah based PCBs: There are 8 Islami Shariah based PCBs in Bangladesh and they execute banking activities according to Islami Shariah based principles i.e. Profit-Loss Sharing (PLS) mode. The list of Islamic banks are:

      1. Islami Bank Bangladesh Limited

      2. ICB Islamic Bank Limited

      3. Al‐Arafah Islami Bank Limited

      4. Social Islami Bank Limited

      5. Export Import Bank of Bangladesh Limited

      6. First Security Islami Bank Limited

      7. Shahjalal Islami Bank Limited

      8. Union Bank Limited

  4. Foreign Commercial Banks (FCBs): 9 FCBs are operating in Bangladesh as the branches of the banks which are incorporated in abroad.

Number of Non-scheduled Bank:

There are some non-scheduled banks in Bangladesh. Some of them are:

  1. Ansar VDP Unnayan Bank

  2. Karmashangosthan Bank

  3. Jubilee Bank



2 BRPD Circular Letter No. 11 dated 14 August 2008.

3 The updated list of scheduled banks is published in 'Introduction' of 'Scheduled Bank Statistics'.

4 BRPD Circular No. 16 dated 30 July 2018


BRPD Circular Letter No. 11 dated 14 August 2008
BRPD Circular No. 16 dated 30 July 2018
Article 36(2) of Bangladesh Bank Order, 1972
'Introduction' Chapter of 'Scheduled Bank Statistics', a publication by Bangladesh Bank.

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