Mobile banking is gaining ground among the people of the country since Bangladesh Bank formulated a guideline nearly two year ago.
“Mobile banking grew at a faster pace, proving that it is more useful than the formal banking,” said Atiur Rahman, governor of Bangladesh Bank, while launching the mobile banking service of NCC Bank designed as “Sure Cash” at a hotel in Dhaka on Sunday.
Transaction through mobile banking service has been increasing at a rate of 20% every month, he said.
Some 5m people now make the use of different services under mobile banking services being provided by 17 banks through their 70 thousands outlets across the country, the function was told.
He said the number of transactions reached to around 450,000 per day, involving a substantial amount of Tk1.12bn. The central bank has already approved 25 banks to operate mobile banking services. Of which, 16 banks has already started operation and NCC Bank launched its operation as number 17.
Rahman said it has become very easy to send money using this alternative banking service across the country.
He said mobile banking also helped expansion of financial inclusion programme taken by the central bank. Urban people are easily sending money to their village home using mobile banking service, leading to cheer up the rural economy, he said.
Mobile banking involves a banking process without necessarily requiring to have any formal branch of a bank. This is purported to providing financial services efficiently to the unbanked communities at an affordable cost.
Provision of banking and other related financial services such as cash-in, cash-out, merchant payment, payment of utility bills, disbursement of salaries, handling of foreign remittance, disbursement of money to the beneficiaries of government allowances and other financial supports, withdrawal of money from automated teller machine (ATM) booths through mobile technology devices with the use of mobile phones, do largely come under the operational domain of mobile banking.
The guidelines on mobile financial services for the banks were amended by the BB with the directive issued in December, 2011 to all banks to follow the same.
Under the guidelines, the transaction limit for the account holders of mobile financial services has been fixed at a maximum amount of Tk10,000 on a daily basis and a total of Tk50,000 per month. The limit is applicable for any number of transactions.