Agent banking

Author Topic: Agent banking  (Read 386 times)

Offline rayhanul.bba

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Agent banking
« on: March 28, 2019, 02:10:58 AM »
Que 1: What is agent banking?
Ans: Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/ cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
Que 2: Necessities of agent banking.
I.Collection of small value cash deposits and cash withdrawals (ceiling should be determined by BB from time to time);
II.Inward foreign remittance disbursement;
III. Facilitating small value loan disbursement and recovery of loans, installments;
IV. Facilitating utility bill payment
V. Cash payment under social safety net programmee of the Government
VI. Facilitating fund transfer(ceiling should be determined by BB from time to time)
VII. Balance inquiry
VIII. Collection and processing of forms/documents in relation to account opening,loan application, credit and debit card application from public;,
IX. Post sanction monitoring of loans and advances and follow up of loan recovery.
X. Receiving of clearing cheque.
XI. Other functions like collection of insurance premium including micro ‐  insurance etc

=> Agent banking supports on condition that banking facilities to those bank customers channel through the associated agents under a legal agency agreement, compare to any standard means of teller/ cashier/ATM booth service.
=>The designated and lawfully associated agent of a government approved bank, who is also the proprietor of an outlet, basically carries out all the banking activities on behalf that bank.
=> There are specific set of guidelines, rules and regulations and agent selection criteria in order to open an agent banking outlet.
 =>The categories of banking services may vary from country to country but there are certain levels of services that agents are not allowed to perform.
=> Only a branch bank can authorize and perform those tasks.
 => agents can collect all the required information and hand them over to the bank for further official process

Que3: Necessity requirements of agent banking to commerce.
1.   Without having approval from Bangladesh Bank no bank shall be allowed to undertake agent banking business
2.   Banks willing to launch Agent Banking Business shall seek prior approval from Bangladesh Bank, with full details of the services including tentative implementation schedule.
3.   Transaction currency will be taka only
4.   Banks shall have to submit copies of agreement(s)/MOU(s) signed between banks and their agents to Bangladesh Bank before launching the product.
5.   The agents shall be selected by the bank and a list of the agents with their names and addresses shall have to be submitted to the Green Banking and CSR Department, Bangladesh Bank and will be updated on monthly basis including changes,n additions and deletions, if any.

Que4: List the name of banks that are performing  agent banking in Bangladesh.
Ans: A total of 14 banks are now running agent banking services:
1.   Dutch-Bangla,
2.    Bank Asia,
3.   Al-Arafah Islami,
4.   Social Islami,
5.    Modhumoti,
6.   Mutual Trust,
7.   NRB Commercial,
8.   Standard,
9.   Agrani,
10.   Midland,
11.   City,
12.   Islami Bank Bangladesh,
13.    First Security Islami and
14.   Premier.
Md. Rayhanul Islam
Senior Lecturer
Department of Real Estate
Facuty of Business & Entrepreneurship
Daffodil International University

Offline effatara

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Re: Agent banking
« Reply #1 on: March 30, 2019, 10:36:18 PM »
 New information for me... :)
Effat Ara Jahan
Sr. Lecturer
Department of Nutrition and Food Engineering
Faculty of Allied Health Sciences

Offline Al Mahmud Rumman

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Re: Agent banking
« Reply #2 on: March 31, 2019, 12:02:15 PM »
New information to know. Thanks for sharing.