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Distinguish between scheduled bank and non-scheduled bank

The different types of banks that are operating in our money market, are divided into two groups- scheduled bank and non-scheduled bank.
1. Scheduled bank: The banks that are enlisted or included in the scheme of the central bank are called scheduled bank. According to Bangladesh bank order-1972 article (1), A scheduled bank means a bank for the time being included in the list of banks maintained by the central bank under sub-clause (a) of clause (2) of article 32. Any bank not included in this list is a non-scheduled bank. For example, as of today, Grameen bank is not a scheduled bank. All the commercial banks in Bangladesh are, however, scheduled banks. Now the total number of scheduled banks is 51.
2. Non-scheduled bank: Non-scheduled banks are those banks which are not included in the schedule of the central bank. As they are not scheduled, they do not get the privileges of clearing system and re-discounting of bill. They are not under direct control of central bank. But they are required to follow rules and regulations framed by the central bank. These banks clear their cheques through any scheduled bank. They do not earn any confidence of the public. So they could not expand their business.

The difference between these two types of banks are shown below-
Points of difference
Scheduled bank
Non-scheduled bank
1. Enlistment and control
These are scheduled and under full control of Bangladesh bank
These banks are neither scheduled nor under direct control of Bangladesh bank.
2. Amount of paid up capital
These bank must have at least 400 crore taka paid up capital.
There is no specific limit for such banks. But generally the amount will be less than the scheduled bank.
3. Amount of deposit
These banks shall have to deposit 18% to the central bank( 12.5% others and 5.5% cash)
There is no compulsion for such banks.
4. Acceptance of privileges
These banks get the privileges of clearing facility and rediscounting of bill to the Bangladesh bank.
These banks do not get such facility.
5. Submission of statement
These banks shall have to submit statement of weekly activities to Bangladesh bank.
These banks need not submit the statement.
6. Rate of interest
The prevailing rates of interest for these banks are comparatively low
Their rate of interest is comparatively high.
7. Earning of public confidence
These banks can earn the public confidence by their activities.
They do not create any confidence of the public.
8. Role playing
These banks play a significant role in the money market.
They do not play significant role.