More transactions are taking place at rural banks compared to that in the cities; more accounts are also being opened in villages with rural bank accounts standing at more than 6.5 times than in the cities, reveals a Bangladesh Bank report.
According to information till June 2018, 17 lakh 77 thousand 400 persons opened accounts through agent banking of 17 banks; of this, 15 lakh 40 thousand 377 are in rural areas.
The number of mail accounts is double than that of female ones with 11 lakh 54 thousand 784 male and 9 lakh 824 female accounts.
Central bank officials say that Bangladesh Bank initiated agent banking in December 2013 to bring everyone under banking services.
According to the central bank, at the end of June 2017, there were 8 lakh 72 thousand 865 agent banking clients. In the last one year, the number was 9 lakh 4335.
Former Bangladesh Bank governor, Dr Atiur Rahman, told Bangla Tribune, “With government support, there has been a renaissance in the rural economy and this is due to the financial inclusion programme.”
After Dr Atiur took over as governor of the Bangladesh Bank, he started the financial inclusion programme by modernizing the payment system.
Previously, seven days were required for a cheque to be deposited, now it takes a few seconds, he said and added, “With this, the idea of mobile banking came to mind along with agent banking.”
With 2588 agents through 351 outlets, agent banking facility is provided all over the country. The banks involved are Bank Asia, Modhumoti Bank, NRB Ban and Commercial Bank.
Through agent banking, a client can deposit upto Tk. 24 lakh four times and withdraw up to Tk. 10 lakh in two transactions.
There is no limit to withdrawal in case of remittance.
According to Bangladesh Bank information, 53 per cent of accounts opened through agent banking were done by Dutch Bangla Bank followed by Bank Asia and Al Arafah Islami Bank.
Meanwhile, six private banks have disbursed a total of Tk. 137 crore 32 lakh 94 thousand as loans. Loans in cities amount to Tk. 23 crore 78 lakh 78 thousand and Tk. 113 crore 54 lakh 16 thousand in rural areas.
Bangladesh Bank spokesperson, Md Sirajul Islam, said, “Rural development means the overall progress of the country.”
So far, 20 banks have been given licence to carry out agent banking operations and they include NRB, UCB, AB, Dutch Bangla, Al Arafah, Social Islami, MTB and others.