This document provides an overview of the money and banking system of Bangladesh. It begins with definitions of money and banks. It describes that the currency of Bangladesh is the Taka, controlled by the Central Bank of Bangladesh. It then discusses the classification of money into metal coins and paper notes. The document outlines the history and current structure of Bangladesh's banking system, including the Bangladesh Bank as the central bank, scheduled and non-scheduled banks, commercial and specialized banks, private and nationalized commercial banks, conventional and Shariah-based banks. It concludes with information about mobile banking services in Bangladesh.

1. Elementary Economics
Presented By:
Azizul Islam
ID: 222911001
Department of Law
Green University of
Bangladesh
Presented To:
Adv. Noyon Islam
Lecturer
Department of Law
Green University of
Bangladesh
The money & banking System of Bangladesh

2. TABLE OF CONTENTS
INTRODUCTION
01 MONEY
02
04
BANKING
03 MOBILE BANKING

3. INTRODUCTION (Money & Bank)
The currency for Bangladesh is the Bangladeshi
Taka (BDT). The Central Bank of Bangladesh controls the
right to issue the currency. The symbols used for the Taka
are Tk. The Taka is divided into smaller denominations of
100 poisha.
On the other hand, A bank is a financial institution that is
licensed to accept checking and savings deposits and make
loans.

4. What is money?
A medium of exchange that is centralized,
generally accepted, recognized, and
facilitates transactions of goods and services,
is known as money.

5. Money can be classified from various points of view. It is
discussed below: According to the components of making, money
can be classified in 2 types, like:
1) Metal coins and
2) Paper notes
Classification of Money

6. Metal Coins
The coin which is
made by metals and
used to conduct our
day-to-day transactions
is called a metal coin.
In Bangladesh, metal
coins of 5 taka, 2 taka,
1 taka and 50 paisa
are available.
Paper Notes
Paper Notes or Money The money which is
made of paper is called paper notes or
money. The value written on the note is the
monetary value of that note, which is
generally higher than its internal value. In
almost all the countries, paper money or
paper notes are introduced by the central
bank by the order of the government of
that country. The paper money of
Bangladesh includes the notes of 1 taka, 2
taka, 5 taka, 10 taka, 20 taka, 50 taka, 100
taka, 200 taka, 500 taka and 1000 taka.

7. Definition of Bank
Bank is a financial institution and intermediary, which collect
deposits through its different deposit mechanism and provide
loans and advances among the loan Clients or investors with
the view to earn profit. Thus a bank is a financial intermediary
and a dealer of loans and debts. In financial concept, banking
means safe custody of money and at the same time an
institution for money transaction.

8. The banking system at independence consisted of two branch offices
of the former State Bank of Pakistan and seventeen large commercial
banks, two of which were controlled by Bangladeshi interests and
three by foreigners other than West Pakistanis. There were fourteen
smaller commercial banks. Virtually all banking services were
concentrated in urban areas. The newly independent government
immediately designated the Dhaka branch of the State Bank of
Pakistan as the central bank and renamed it the Bangladesh Bank.
The bank was responsible for regulating currency, controlling credit
and monetary policy, and administering exchange control and the
official foreign exchange reserves. The Bangladesh government
initially nationalized the entire domestic banking system and
proceeded to reorganize and rename the various banks. Foreign-
owned banks were permitted to continue doing business in
Bangladesh.
HISTORY OF BANGLADESH BANK

9. BANKING SYSTEM IN BANGLADESH
Bangladesh Bank
Scheduled Bank Non-Scheduled Bank
Commercial Bank Specialized Bank
Nationalized Commercial Bank
Private Commercial Bank
Conventional Bank Shariah Based Bank

10. Scheduled Bank:
There are 61 scheduled banks 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.
Non-Scheduled Bank:
There are now 5 non-scheduled banks in Bangladesh which are: Ansar VDP Unnayan
Bank, Karmashangosthan Bank, Grameen Bank, Jubilee Bank, Palli Sanchay Bank.
Commercial Bank
A commercial bank is a financial institution that provides services like loans, certificates
of deposits, savings bank accounts bank overdrafts, etc. to its customers. There are 61
commercial bank in Bangladesh.
Specialized Bank:
The specialized banks are defined as those banks that are banking operations that
serve a specific type of economic activity, such as industrial activity or agricultural or real
estate, under the resolutions of their establishment. There are 3 specialized bank in
Bangladesh.

11. Private Commercial Bank:
Private Sector Banks are the banks whose majority of stake is held by private
corporations or individuals. Private banks have a higher FDI cap at 74 percent, provided
there should be no change of control.
Nationalized Commercial Bank:
National Commercial Bank means a Commercial Bank which is authorised to conduct
business on a national basis.
Conventional Bank:
In Conventional Banks, all types of industries are financed, only businesses deemed
illegal by the law of the land are not supported. Generally Conventional Banks do not
involve themselves in trade and business as they act only as money lenders.
Shariah Based Bank:
banking system which is in consonance with the spirit, ethos and value system of Islam
and governed by the principles laid down by Islamic Shariah.

12. Mobile Banking
Currently, 13 banks are providing
mobile banking services under different
names including Bkash, Rocket, U
Cash, My Cash, and Sure Cash. At the
end of January 2023, the number of
customers registered in mobile
banking stood at 19.41 crore.

13. Thank
You