Abstract:
Rural Development Bank contributes significantly to the growth of rural economy of Cambodia. The Bank provides refinancing to the commercial banks and licensed financial organizations. The products offered by Rural Development Bank include Savings Account, Current Account, Fixed Deposit and different types of Loans.
Rural Development Bank is a publicly held financial institution established by Government of Cambodia. This autonomous body has got the authority to administer all the banking services and related operations of the micro finance industry of Cambodia.
This Rural Development Bank of Cambodia refinances the loans of commercial banks, micro finance institutions and the licensed financial institutions in order to accelerate the growth of the rural economy of Cambodia.
The bank does the refinancing, using the funds provided by The Asian Development Bank, the International Fund for Agricultural development and the National Budget of the country.
To understand the functions of Rural Development Bank, we need to know about the products and services offered by the bank. Among the products, the products the most popular are Savings Account, Current Account and different types of loans.
Savings Account
Rural Development Bank provides Savings Account which require an initial minimum deposit of $100. The bank provides free pass book with this savings account but charges $5 for issuing duplicate passbook in case the earlier one is lost.
Current Account
This account provided by Rural Development Bank requires an initial minimum deposit of $500. Monthly Account Statement is provided free of cost with this account. This account has Check Book Facility, but the Bank charges $5 for every check book of 20 leaves.
Loans provided by Rural Development Bank
The Rural Development Bank provides different kinds of loan products. The bank offers Term Loans for which the repayment should be done within the specific tenure. For this specific loan period, both the principal and interest amount of the loan are amortized by the bank.
The Rural Development Bank also offers products like Credit Line, where, the Principal amount of the loan is repaid at the end of the tenure of the loan, whereas, the interests on outstanding principal amount is paid on a regular basis.
The Rural Development Bank also offers loan products like Secondary Loan, Long Term Loan and Institutional Credit.