Banks asked to appoint dedicated officials to monitor agent banking operations

The Bangladesh Bank today asked banks to monitor agent banking programme closely by appointing dedicated officials in order to ensure transparency of the operation.

Quarterly or monthly physical visits by bank staff or authorised persons will have to be run to ensure that agents strictly operate the financial operation within the purview of the law, guidelines and the contract.

Bank will have to submit a quarterly report to the BB providing information on financial irregularities, fraud, forgeries, scams and so on within seven working days after the end of each quarter.

No agent will relocate, transfer, replace or close its agent banking outlet without the prior written consent of the bank, according to a BB notice.

Banks subsequently have to take prior approval from the Bangladesh Bank for relocation of outlet and transfer or replacement of outlet ownership.

It, however, said no such approval from the BB would be required in case of closure of outlet.

There were 13,086 agents across the country as of the end of December, whereas it was 11,925 a year ago, data from the BB showed.

The deposit balance in the agent banking windows of the banks stood at Tk 24,294 crore last year, an increase of 52 per cent year-on-year.

Loan disbursement through the agent banking channel stood at Tk 5,347 crore in 2021, up 182 per cent year-on-year.

Some 29 banks are now providing financial services to clients through this alternative mode of banking.

The central bank issued an agent banking guideline in 2013 but the licensees did not start full-fledged operations until 2016.