Agent Banking:

Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
History of Agent Banking:
Agent Banking has been adopted and implemented with varying degrees of success by a number of developing countries. Brazil is often recognized as a global pioneer in this area since it was an early adopter of the model and over the years has developed a mature network of Agent banks covering more than 99% of the country’s municipalities. Other countries have followed suit, including Mexico, Peru, Colombia, Ecuador, Venezuela, Argentina, Bolivia, Pakistan, Philippines, Kenya, South Africa, Uganda and India.
Guidelines on Agent Banking:
  • Bangladesh Bank issued "Guidelines on Agent Banking for the Banks" vide PSD Circular No. 05 dated December 9, 2013 for promoting Agent Banking as a complimentary channel for financial inclusion and supervising agent banking of banks.
  • To supplement the agent banking guideline issued vide PSD Circular No. 05 dated December 9, 2013; Bangladesh Bank issued "Guidance Note for Approval and Operation of Agent Banking Activities for banks" vide GBCSRD Circular No. 02 dated June 3, 2014.
  • Bangladesh Bank issued "Prudential Guidelines for Agent Banking Operation in Bangladesh" vide BRPD Circular 14 dated September 18, 2017 to facilitate banks to engage in agent banking.
Concept of BRAC Bank Agent Banking:

BRAC Bank Ltd introduced its Agent Banking Service in September 2018, with an aim to cover every corner of Bangladesh with state of the art digital banking solution and compliment BRAC Bank SME business strategy. The new digital capabilities will bring convenience to people, providing them round-the-clock banking services. The bank will leverage its expertise in SME banking to make Agent Banking a widely expansive distribution channel. Agent Banking will be the vital move of BRAC Bank Limited to provide smart banking services to the unbanked population of the nation, hence boost the financial inclusion countrywide. Agent Banking is a fairly new concept in the banking industry of Bangladesh through which customers can get a limited scale of banking services who reside outside of the periphery of bank branches.

In such arrangement an agent will be appointed under agency agreement who acts as the representative of BRAC Bank Limited and carries out the transactions on behalf of it. Agent banking thus creates an alternative delivery channel that provides convenient and low cost banking services to places where a fully equipped branch is difficult to establish.

To facilitate and secure the services of agent banking, the Agent Banking Softwere (ABS) will be under use which enables the transactions to be real time through online. The transactions will be secured by two factor authentication (2FA) mechanism in which both the customer’s and the agent’s thumbprint through a biometric device will be used to validate the transaction/request. By the system customer will be notified through a system generated printed receipt of the executed transaction and an SMS alert as well.

BRAC Bank Limited looks forward to expand its agent banking network since it enables the bank to extend its services to the underserved people living in the remote region where traditional branch banking is difficult to perform. BBL also wants to make its services accessible to those who have little formal and financial literacy in a cost effective manner.

Eligibility of Agent:
  • Any Business entity having trade licenses.
  • MFI’s regulated by Microcredit Regulatory Authority (MRA) of Bangladesh
  • NGOs registered with Social Welfare Directorate
  • Societies registered under the Societies Registration Act, 1860
  • Cooperative Societies formed and controlled/supervised under Cooperative Society Act, 2001
  • Government offices having branch/unit offices
  • Courier and Mailing Service Companies registered under Ministry of Posts & Telecommunications
  • Companies registered under The Companies Act, 1994
  • Agents of Mobile network operators
  • Agents of Insurance companies
  • Local government institutions
Eligibility of Agent:
  • Any Business entity having trade licenses.
  • MFI’s regulated by Microcredit Regulatory Authority (MRA) of Bangladesh
  • NGOs registered with Social Welfare Directorate
  • Societies registered under the Societies Registration Act, 1860
  • Cooperative Societies formed and controlled/supervised under Cooperative Society Act, 2001
  • Government offices having branch/unit offices
  • Courier and Mailing Service Companies registered under Ministry of Posts & Telecommunications
  • Companies registered under The Companies Act, 1994
  • Agents of Mobile network operators
  • Agents of Insurance companies
  • Local government institutions
Criteria to become a BRAC Bank Agent:
  • Individual having trade license/Firm to be Bangladeshi National/Origin.
  • Proposed Agent would have any business experience (minimum 1 year).
  • Proposed Agent would be educated having a minimum qualification S.S.C or equivalent to understand the rules and regulation of financial services.
  • Applicant’s age limit would be 18-65 years.
  • Agent need to propose one/multiple prospective locations for Agent Banking Outlet(s).
  • Applicant would be local resident of the proposed area (preferred).
  • The person/firm would be financially sound and solvent.
  • Applicant would have own/rented business premise.
  • Proposed Agent should not be a loan defaulter/Bankrupt with any bank/financial institution and not penalized by any civil or criminal court.
  • Not engaged with any subversive activities.
  • Not having other bank’s agent banking licenses.
  • Proposed Agent should have knowledge and ability to handle Technology based financial services.
  • Person should have ability to meet commitment under adverse situation.
  • Capacity to manage cash handling in Agent Banking Outlet
  • .
  • No Bank related person should be appointed as Agent, as defined in section 26GA of the Bank-Company Act, 1991.
  • BRAC Bank officials will not be eligible to become an Agent within 1 (one) year of his/her retirement or resignation.
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Agent Banking Outlets
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