The report said the agent banking is mostly popular in Dhaka as 24% of the users are residents of the division while 18% of Chittagong. The least users are in Sylhet making up 5% of the total agent banking account holders.
In his address, SK Sur Chowdhury said: “Agent banking is playing an important role in financial inclusion as 82% of its users are residing in remote areas. Operational cost of agent banking should have to be reduced with a view to expanding the service.”
Many banks have received licence for agent banking, but only two-three banks are now providing the services, he added. Sur urged all banks that received licences to start agent banking services.
Khondokar Ibrahim Khaled said: “The number of secret agent banking is on the rise at an alarming rate and hundi business is being conducted in the name of such banking.”
“It should be stopped and those involved have to be brought to book.”
The commercial banks need to rein in the agent banking totally, and if they fail, the central bank should take steps against them, according to the former governor.
BIBM Director General Dr Toufic Ahmad Choudhury said the agent banking is playing a vital role in expanding banking network.
He also sought for a comprehensive guideline for the service.
According to BB sources, Dutch-Bangla, Bank Asia, Al-Arafah Islami, Social Islami, Modhumoti, Mutual Trust, NRB Commercial, Standard, Agrani, Midland, and First Security Islami Bank are providing agent banking services now.
Though Trust Bank and South Bangla Agriculture and Commerce Bank have got the licences, they are yet to launch the services.
At present, the number of agents is 1,646 and outlets 2,601, while the number of accounts stand at 5,44,536. The central bank approved agent banking system in the banking sector in 2014.Small businesses account for 29% of total users of agent banking followed by housewives that constitute 18%, according to a study of Bangladesh Institute of Bank Management (BIBM).
Agent banking refers to providing limited scale banking and financial services to a sect of under-served population through engaging agents under a valid agency agreement, rather than a teller or cashier.
It is the owner of an outlet that conducts banking transactions on behalf of a bank.
The information was unveiled at a round-table discussion of BIBM styled “Agent Banking: Effectiveness in Financial Inclusion” held at its auditorium on Sunday.
Bangladesh Bank (BB) Deputy Governor SK Sur Chowdhury was present at the event as the chief guest while former deputy governor of the central bank Khondokar Ibrahim Khaled spoke on the occasion as special guest.
BIBM Director General (DG) Dr Toufic Ahmad Choudhury chaired event while its Director Prof Prashanta Kumar Banerjee presented the report.
In his presentation Prashanta said: “Of the total users of agent banking, 29% are small businesses while 18% housewives, 15% public and private employees, 7% farmers, 7% students and 3% are day labourers.”
The report said the agent banking is mostly popular in Dhaka as 24% of the users are residents of the division while 18% of Chittagong. The least users are in Sylhet making up 5% of the total agent banking account holders.
In his address, SK Sur Chowdhury said: “Agent banking is playing an important role in financial inclusion as 82% of its users are residing in remote areas. Operational cost of agent banking should have to be reduced with a view to expanding the service.”
Many banks have received licence for agent banking, but only two-three banks are now providing the services, he added. Sur urged all banks that received licences to start agent banking services.
Khondokar Ibrahim Khaled said: “The number of secret agent banking is on the rise at an alarming rate and hundi business is being conducted in the name of such banking.”
“It should be stopped and those involved have to be brought to book.”
The commercial banks need to rein in the agent banking totally, and if they fail, the central bank should take steps against them, according to the former governor.
BIBM Director General Dr Toufic Ahmad Choudhury said the agent banking is playing a vital role in expanding banking network.
He also sought for a comprehensive guideline for the service.
According to BB sources, Dutch-Bangla, Bank Asia, Al-Arafah Islami, Social Islami, Modhumoti, Mutual Trust, NRB Commercial, Standard, Agrani, Midland, and First Security Islami Bank are providing agent banking services now.
Though Trust Bank and South Bangla Agriculture and Commerce Bank have got the licences, they are yet to launch the services.
At present, the number of agents is 1,646 and outlets 2,601, while the number of accounts stand at 5,44,536. The central bank approved agent banking system in the banking sector in 2014.
The report said the agent banking is mostly popular in Dhaka as 24% of the users are residents of the division while 18% of Chittagong. The least users are in Sylhet making up 5% of the total agent banking account holders.
In his address, SK Sur Chowdhury said: “Agent banking is playing an important role in financial inclusion as 82% of its users are residing in remote areas. Operational cost of agent banking should have to be reduced with a view to expanding the service.”
Many banks have received licence for agent banking, but only two-three banks are now providing the services, he added. Sur urged all banks that received licences to start agent banking services.
Khondokar Ibrahim Khaled said: “The number of secret agent banking is on the rise at an alarming rate and hundi business is being conducted in the name of such banking.”
“It should be stopped and those involved have to be brought to book.”
The commercial banks need to rein in the agent banking totally, and if they fail, the central bank should take steps against them, according to the former governor.
BIBM Director General Dr Toufic Ahmad Choudhury said the agent banking is playing a vital role in expanding banking network.
He also sought for a comprehensive guideline for the service.
According to BB sources, Dutch-Bangla, Bank Asia, Al-Arafah Islami, Social Islami, Modhumoti, Mutual Trust, NRB Commercial, Standard, Agrani, Midland, and First Security Islami Bank are providing agent banking services now.
Though Trust Bank and South Bangla Agriculture and Commerce Bank have got the licences, they are yet to launch the services.
At present, the number of agents is 1,646 and outlets 2,601, while the number of accounts stand at 5,44,536. The central bank approved agent banking system in the banking sector in 2014.