Bangladesh Bank, the central bank of Bangladesh, can take several measures to keep deposits in the banking system, some of which are:
1. Promote financial literacy: BB can promote financial literacy among the general public to educate them about the benefits of keeping their money in banks and the risks associated with keeping cash at home or outside the banking system.
2. Improve the safety and soundness of the banking system: BB can set and enforce strict regulatory standards for banks, including adequate capital requirements, risk management practices, and internal controls, to ensure the safety and soundness of the banking system.
3. Introduce deposit insurance: BB can introduce deposit insurance schemes to protect depositors in case of bank failures. This can help build trust in the banking system and encourage people to keep their money in banks.
4. Encourage digital payments: BB can promote and facilitate digital payments and transactions to make it easier and more convenient for people to use banking services. This can help reduce the use of cash and encourage people to keep their money in banks.
5. Provide incentives: BB can provide incentives such as higher interest rates, discounts on fees, or tax incentives to encourage people to keep their money in banks. This can make it more attractive for people to save their money in banks.
6. Strengthen consumer protection: BB can strengthen consumer protection measures to ensure that banks treat their customers fairly and transparently. This can help build trust in the banking system and encourage people to keep their money in banks.
7. Improve financial inclusion: BB can work to improve financial inclusion by making banking services more accessible to underserved populations. This can help to bring more people into the banking system and reduce the use of cash outside of the banking system.
8. Interest rates: Regulators can set interest rate policies that encourage people to keep their money in banks. For example, higher interest rates on deposits can make it more attractive for people to save their money in banks.
Stringent regulations: Regulators can impose stringent regulations on banks to ensure their stability and soundness. This helps to prevent bank failures and reduces the risk of losing deposits.