Guidelines on Agent Banking for the Banks

Bangladeshmoves, 25 March, 2014: After promulgation of a guile lines on agent banking in the BRPD circular -5 of 9 November, 2013, additional guidelines have been provided by Bangladesh Bank on 24 March 2014 in the BRPD circular -7. In the circular the contact between the bank and agent, Business continuity plan, a policy regarding the agent banking authorized by the Managing committee of the bank.  The authorization of the agent bankers should be obtained from the Payment Systems Department of Bangladesh Bank. In the circular it has been further instructed that the authorized agent banks has to maintain a current account with the contracted bank where maximum balance shall be 10 (ten) lac taka.  The bank concerned persons envisaged in section 26C of Bank Companies Act, 1991 is not entitled to be recruited as agent banker, the circular added.  The agent banker must conduct his business in the rural area and not authorized to do in the Municipality or City Corporation or Metropolitan areas.  Regarding Islamic banks, it has been directed to conduct Islamic banking services at the client’s level. In addition, the circular of Bangladesh Bank had stressed to cover the money transacted at agent level must be covered under Insurance policies. Detailed guidelines in Bengali may be obtained in the website of Bangladesh Bank.