Bangladesh Bank (BB), the central bank of Bangladesh, has released a set of guidelines on mobile financial services in an effort to enable the banking network to reach unbanked segments of the population in a reliable manner and at low cost. “We’ve issued the guidelines as part of our financial inclusion programme to include a vast segment of the population, especially the underprivileged ones and rural people within the fold of basic banking services, using mobile phone network across the country,” BB Executive Director Dasgupta Asim Kumar reportedly said. An estimated 15 percent of the country’s population currently have bank accounts while 50 percent use mobile phones. [1]
Authorised mobile financial services (MFSs) include inbound foreign remittances; cash deposits and withdrawals via agents, bank branches, automated teller machines (ATMs) or mobile operators’ outlets; and payment transfers between individuals and businesses. According to the guidelines, banks rather than mobile operators must select the agents who will serve as cash points. Authentication via a personal identification number (PIN) or similar other secured mechanisms will be required for all transactions. [2]
The guidelines also cover issues such as regulatory requirements, account opening mechanics and partner selection criteria. [2] The central bank has so far issued permission to 12 unnamed commercial banks to run mobile phone banking businesses with five already having launched service. [1]
By Kristha Abores, Research Associate
About Bangladesh Bank (BB):
BB is the chief regulator of the country’s monetary and financial system. Established in 1972, BB’s mission is to regulate reserves, manage country’s monetary and credit system and foster development of the country’s economy. As of December 2010, BB operates nine branches and has a total staff of 5,071. Atiur Rahman was appointed as Bank Governor in 2009 and still serves in that capacity as of 2011.
Sources and Additional Resources:
[1] The Financial Express: “BB issues new guidelines on mobile financial services”, http://www.thefinancialexpress-bd.com/more.php?news_id=150904&date=2011-…
[2] Bangladesh Bank, “Guideline on Mobile Financial Services for the Banks”, http://www.bangladesh-bank.org/aboutus/regulationguideline/mfsguideline.pdf
MicroCapital.org article, August 4, 2011, “MICROCAPITAL BRIEF: Boston Consulting Group Publishes “Socio-Economic Impact of Mobile Financial Services” for Telenor, Exploring Effects of Mobile Financial Services in Bangladesh, India, Malaysia, Pakistan, Serbia Over the Next Decade”, https://www.microcapital.org/microcapital-brief-boston-consulting-group-publishes-socio-economic-impact-of-mobile-financial-services-for-telenor-exploring-effects-of-mobile-financial-services-in-bangladesh-india-malaysia/
MicroCapital Universe Profile: Bangladesh Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangladesh+Bank+%28BB%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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