BB cuts mobile banking ceiling to check scams

The central bank cut down transaction ceiling on mobile banking to check illegal financial operations through misusing the quick-fire mobile financial services (MFS).
Under the restricted provisions, daily maximum transaction limit on cash-in came down to Tk 15,000 from Tk 25,000 while maximum cash-out limit to Tk 10,000 from Tk 25,000.
And the frequency of transactions has also been limited to twice a day for the first instead of five and as many times for the second instead of thrice a day.         
Besides, monthly maximum cash-in limit has been slashed to Tk 100,000 from Tk 150,000 while maximum monthly limit on cash-out came down to Tk 50,000 from Tk 150,000.
A mobile bank accountholder will not be allowed to make withdrawal, officially known as 'cash-out', above Tk 5,000 within 24 hours after cash-in, according to latest circular, issued by the Bangladesh Bank (BB) Wednesday.
"MFS is a fast-growing service that attained huge popularity among mass people, particularly lower-income group. But allegations have it that some dishonest persons are misusing this service, which is harmful to the country and the nation," the circular reads.           
The central bank also asked the banks for providing MFS not to allow any person to operate no more than one mobile bank account against his/her NID (national identity card).
"We've tightened our policy to discourage illegal transaction using MFS," Shubhankar Saha, spokesperson for the BB, told the FE.
A person needs not more than one online account for mobile banking transactions, Mr. Saha, also executive director of the central bank, explained.
Any mobile bank accountholder will have to show photocopy of his/her NID to the agent concerned for both withdrawing and depositing cash amounting to Tk 5,000 and above, according to the instructions.
The agent will have to maintain the cash-in and cash-out separately with signature or fingerprint of the clients.
The central bank also asked managing directors and chief executive officers (CEOs) of the banks for providing MFS to cancel licence of the agents if found negligent in complying with the provisions.
The BB had given permission to 20 commercial banks for running their mobile banking business across the country.
Of them, 18 commercial banks have already started mobile banking by using mobile-phone network, according to the BB officials.
Under the existing guidelines, the country's bank-led model will offer an alternative to conventional branch-based banking to un-banked population through appointed agents facilitated by the Mobile Phone Network Operators (MNOs) or solution providers.
The banks and their partners will have to comply with the existing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)-related laws, regulations and guidelines issued by the central bank from time to time, according to the guidelines.
Meanwhile, country's mobile banking transactions amounted to at Tk 2.11 trillion during the first 11 months of 2016.
Latest statistics available with the central bank revealed the figure which was 37 per cent higher than Tk 1.54 trillion in the same period of 2015
Cash-in is the most popular service of mobile banking followed by cash-out. Both the services account for around 80 per cent of the total transactions while person-to-person accounts around 19 per cent.
    siddique.islam@gmail.com