The Prime Minister’s Education Assistance Trust has announced its initiative to provide stipends to around 54 lakh underprivileged and meritorious students at the secondary level in Bangladesh through Nagad, a prominent mobile financial service provider. The aim is to ensure their enrollment in schools.
As part of the stipend disbursement program, students from classes six to ten will receive Taka 5,000 each as one-time assistance. Online applications for the stipends have already been submitted by disadvantaged students, with disbursements set to commence shortly.
Previously, this stipend was distributed through various channels, but concerns about alleged irregularities prompted the government to reconsider. To enhance transparency and efficiency, it has been decided to distribute this assistance solely through Nagad, according to a recent decision by the Directorate of Secondary and Higher Education under the Education Ministry.
Officials familiar with the matter reveal that stipends for secondary level students under the PM’s Education Assistance Trust were previously disbursed through multiple mobile banking services, including Nagad, and even through banks. However, various problems arose during these disbursements, making it challenging to ensure that the stipends reached the intended beneficiaries.
To address these issues, the decision was made to streamline the process through a single platform. Nagad was chosen due to its proven track record in successfully distributing primary education stipends to 1.5 crore students.
Moreover, Nagad is currently the largest mobile banking company in Bangladesh, with over nine crore registered customers and three lakh agent points nationwide, facilitating convenient money withdrawals.
Government agencies favor Nagad’s services due to its successful track record in disbursing government allowances and stipends. Additionally, Nagad’s lower costs make it a preferred choice for such initiatives.
In late January, the Prime Minister’s Education Assistance Trust issued a notification stating its intention to provide admission assistance to poor and meritorious students enrolled in secondary and equivalent levels in various educational institutions. Eligibility criteria include an annual parental income of less than Taka two lakh and considerations for children of employees in certain government sectors.
Since 2013, a fund of Taka 1,000 crore has been allocated under the PM’s Education Assistance Trust to provide one-time assistance to underprivileged and meritorious students at different educational levels. The assistance amounts have been fixed at Taka 5,000 for secondary level, Taka 6,000 for higher-secondary level, and Taka 10,000 for graduate and equivalent levels, as per government decisions.
