BB issues revised agent banking guideline

Bangladesh Bank (BB) has issued a revised guideline titled "Prudential Guidelines for Agent Banking Operation in Bangladesh" aimed at taking the banking services to the doorsteps of the people.

The Banking Regulation and Policy Department (BRPD) of the central bank today issued the revised guideline to ensure smooth operation of the agent banking activities.

As per the guideline, BB instructed banks to ensure two factor authentication (TFA) i.e., use of a photo ID, personal identification number (PIN), biometric fingerprint, or any other secret code or message during transactions.

 

Quarterly or monthly physical visits by bank's staff or authorized persons are necessary to ensure that agents operate strictly within the requirements of the law, guidelines and the contract.

Besides, branch manager or branch nominated officials shall closely monitor the agent banking activities of the outlet linked to the branch.

 

No agent shall relocate, transfer, replace or close its agent banking outlet without the prior written consent of the bank. Banks have to take prior approval from BRPD for Relocation of outlet and Transfer or Replacement of Outlet ownership. However, no such approval will be required in case of closure of outlet.

Bank has to submit a quarterly report to Financial Institutions Division (FID) providing information on financial irregularities, fraud, forgeries, scams and accidents etc. occurred while conducting agent banking activities and actions taken by the respective bank.

The report has to be submitted within 07 (seven) working days after the end of each quarter as per Annexure-E and in case there is no such incident for the reporting quarter, a 'Nil' report has to be submitted.