Digital Discipline: Govt Bans Cash Transactions in Private Schools and Colleges
The government has taken a firm stance to ensure financial transparency and accountability in the country’s private educational institutions. From now on, all types of student fees and institutional income in private schools and colleges must not be collected in cash. Instead, transactions must be completed through online payment gateways operated by state-owned banks.
The directive has been issued under the “Financial Transparency and Accountability Policy for Private Educational Institutions, 2026,” promulgated by the Secondary and Higher Education Division of the Ministry of Education. The policy, signed by Deputy Secretary Syed A.Z. Morshed Ali on February 9, has already come into effect.
Mandatory Online Payments
Under the new policy, tuition fees, session charges, and all other forms of income must be collected exclusively through Sonali Payment Gateway (SPG) or any other online gateway operated by a government bank. Cash transactions will be strictly prohibited except in cases of emergency or natural disaster.
Abolition of Re-admission Fees
The policy clearly states that no “re-admission fee” may be charged when a student progresses from one class to the next within the same institution. However, institutions will still be allowed to collect session charges in accordance with existing rules.
Strict Penalties for Irregularities
The president of the managing committee and the head of the institution will be held jointly responsible for any financial irregularities. Even after leaving their posts, they may face legal action if past misconduct is uncovered. For teachers, financial violations will be treated as “misconduct,” potentially leading to suspension of MPO (Monthly Pay Order) benefits or even dismissal.
Introduction of E-Cash Book
To enhance transparency, the Directorate of Inspection and Audit (DIA) will develop an online-based “E-Cash Book” system. Every financial voucher of the institution must be entered into this digital platform for monitoring and auditing purposes.
Limits on Cash Expenditure and Formation of Subcommittees
The policy allows institutions to retain a limited amount of petty cash (Imprest Fund) for daily minor expenses, ranging from Tk 10,000 to Tk 30,000 per month depending on the type of institution. However, no single voucher may exceed Tk 25,000 in cash expenditure. Payments exceeding this amount must be made via crossed cheque.
Additionally, six mandatory subcommittees must be formed in each institution to oversee financial activities, including finance, procurement, development, tuition fee collection, internal audit evaluation, and internal audit.
Official Statements
Additional Secretary of the Ministry of Education, Md. Mizanur Rahman, stated that the initiative aims to restore financial discipline in a sector serving over 10 million students. According to 2024 data from BANBEIS (Bangladesh Bureau of Educational Information and Statistics), there are currently 22,657 private schools and colleges in the country.
Although previous directives had also prohibited the collection of re-admission fees, many institutions reportedly failed to comply. The ministry hopes that stricter measures — including cancellation of managing committees and suspension of MPO benefits — will effectively curb irregularities this time.
Loan and Advance Facilities for Teachers and Staff
The new policy also introduces a structured loan facility for teachers and staff on humanitarian grounds.
Amount: A teacher or staff member may receive an advance or loan equivalent to a maximum of six months of their basic salary.
Purpose: The loan may only be granted for humanitarian needs such as emergency medical treatment or natural disasters.
Adjustment: The amount will be recovered in installments through deductions from the recipient’s monthly salary.
Six Subcommittees for Financial Oversight
To ensure transparent income and expenditure management, each institution must establish six subcommittees with defined responsibilities:
Finance Subcommittee: Responsible for preparing the overall budget and overseeing income sources and expenditure sectors.
Procurement Subcommittee: Ensures transparency in purchasing furniture, books, and other supplies, and supervises the tender process.
Development Subcommittee: Oversees planning and implementation of new construction or renovation projects.
Tuition Fee and Session Charge Collection Subcommittee: Monitors whether student fees are properly deposited through the online gateway and ensures collection of outstanding dues.
Internal Audit Activity Evaluation Subcommittee: Regularly reviews financial accounts and identifies discrepancies.
Internal Audit Committee: Functions as a check-and-balance body, auditing all vouchers and bank statements of the institution.
Strict Punishment for Misconduct
The policy explicitly states that any teacher or official found violating financial regulations or engaging in cash transactions will be deemed guilty of “misconduct.” Consequences may include temporary or permanent suspension of MPO benefits, dismissal from service in serious cases, and even cancellation of the institution’s managing committee by the government.
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