The Bangladesh Bank has agreed in principle to form a savings bank.

Earlier, the National Savings Directorate (NSD{ had.sent a proposal to the Finance'Ministry seeking its permission for setting up a savings bank so that it could mobilise funds across the country. It mainly aims at bringing the postal savings schemes and other similar small savings instruments under its wing.

Accordingly, the Finance

Ministry sent the proposal to the central bank for its approval.

A committee will be formed to prepare, the terms of reference for the proposed bank. The terms of reference will include, among other things, the running procedure of the bank, its field of investment and the sponsors.

After the preparation of the terms of reference by the committee. the Bangladesh Bank will finally okay the proposal.