City Bank joins Sonali, Agrani to receive monthly contributions for Pension Scheme
City Bank has now become the first private bank to join, and three more private banks are set to follow suit
In a move to further the implementation of the Universal Pension Scheme, the authorities have expanded the pool of participating banks, with City Bank joining as the first private institution and the third bank authorised to receive monthly contributions.
Under an agreement signed today with the National Pension Authority, the bank will collect monthly instalments through its various channels from both resident and non-resident Bangladeshis while also attracting new subscribers for different packages under the scheme.
Mashrur Arefin, managing director of City Bank, said, "We aim to promote this scheme through all our branches, outlets, and agent banking."
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He emphasised the bank's commitment, saying, "Our profit from this scheme may be less initially, but we are willing to sacrifice immediate gains for a greater cause. We aspire not only to promote but also to actively sell this scheme. A time will come when the profits exceed our expectations."
At the agreement signing ceremony at a city hotel, Kabirul Ezdani Khan, executive chairman of the pension authority, mentioned that they have plans to assign more private banks.
"The current elderly population stands at 1.20 crore. By 2041, when we aim to become a developed country, our elderly population is projected to reach 3.60 crore. We aspire to broaden this scheme to ensure people's well-being after their retirement," he asserted.
The government launched the scheme in July, featuring individual contributions ranging from a minimum of Tk500 to a maximum of Tk5,000 per month.
Initially targeting four categories – private sector employees, non-resident Bangladeshis, individuals from the informal sector, and insolvent individuals – the scheme began with deposit options available through state-owned Sonali and Agrani banks.
City Bank has now become the first private bank to join, and three more private banks are set to follow suit.
Finance Division Secretary Md Khairuzzaman Mozumder said the biggest challenge with this scheme is raising awareness.
He also said, "Among our pension schemes, the expatriate scheme remains relatively weak. City Bank, with its extensive expatriate customer base, is poised to enhance the reach and impact of this scheme."
Saidur Rahaman Farazi, chief executive officer of CBL Money Transfer, a money exchanger operated by City Bank, highlighted that the bank is taking necessary measures to attract new subscribers for all four schemes, with a particular emphasis on the "probash" scheme designed for non-resident Bangladeshi citizens.
"This initiative includes utilising 15 outlets of our own exchange house, CBL Money Transfer, as well as collaborating with other partner locations," he added.
Farazi explained, "Through our CityRemit app in Malaysia, expatriates can conveniently send their remittances home. With over 1 million expatriates in Malaysia and more than 33,000 already using our services, we anticipate a significant expansion in our reach through comprehensive campaigns across every outlet and by leveraging social media platforms, such as Facebook."
Sheikh Mohammad Maroof, AMD and chief business officer of City Bank, said, "Our task is to increase the enrolment of this scheme, with a particular emphasis on the fair expatriate scheme over other schemes."
