IN order to include the unbanked people in the banking system, the Bangladesh Bank (BB) has launched agent banking service for banks. In this regard, the central bank issued a circular on agent banking on December 3, 2013. The aim of agent banking is to provide banking services to people where banking service is yet to reach or where expansion of bank branches is not financially viable. Agent banking is a cost-effective alternative for the banks as it takes huge amount of money to open branches and operate them. Already some banks got licence from the BB to operate agent banking and have made agreements with agents for the purpose. The central bank has circulated the guidelines in this regard and is regularly updating the same in order to make the agent banking system safe and secure.
Through agent banking system, people of remote rural areas people will have access to banking services. Almost 62 per cent of people still remain outside of the banking system and agent banking will help them have banking facilities available at their doorsteps. People of remote areas will get inward remittance conveniently, can save small deposit, pay utility bills, get government financial help under the social safety net programme and small loans, etc. without going to bank branches. The agent will provide banking service on behalf of the banks in exchange of certain commission. Agents will distribute and recover small loan, collect small deposits and gather account information on behalf of the banks.
According to the Bangladesh Bank, the day-t0-day transaction amount and number of accounts have been increasing since the inception of agent banking in the country. Some countries have shown outstanding performance in agent banking. For example, Brazil, Peru, Malaysia introduced agent banking and reaped immense benefits. India and Pakistan also launched agent banking. Agent banking will help create employment in rural areas. Last but not least, specific rules and regulations should be in place and agent workforce should be imparted regular training.
Md. Zonaed Emran
The Farmers Bank Ltd.
[email protected]
- Saturday, 23 November 2024 |
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