BB Governor asks banks to rationalize debit, credit card fees
Monday, 10 August 2009
FE Report
Bangladesh Bank Governor Dr. Atiur Rahman Sunday asked the banks to rationalize their rate of debit or credit card fee in a bid to popularize the state-of-the-art payment system among a wider populace.
At the same time, he also asked the banks to notify the amount charged on the usage of debit or credit card in advance to the subscribers to bring more transparency in the process.
"There have been allegation from various corners that some banks are charging hefty or extra fees from their subscribers on the use of electronic card," BB Governor said at launching ceremony of two debit cards of NCC Bank Limited in the city.
"Therefore, we have already stipulated a provision that the rate of fees charged on the use of these cards must be notified to the central bank as well as to the subscribers in advance," he added.
"The rate of debit or credit card fees must be kept at a rationalized level so that it remains within the reach of the general populace," Atiur said, "and the subscribers must be kept updated about any futher change in the rate through website" he added.
Central Bank governor also observed that the increased competition among the banks would also work to gradually rationalize the fees.
"Now that all the banks one by one are offering credit card facilities, this would create a competition among the banks which ultimately would bring down the charges", he said.
He also expressed his hope that in the future debit card facilities would be used for providing agricultural loan as well as subsidy to the farmers.
Later, the Bangladesh Bank Governor also formally launched the two new debit cards - named 'mPower' and 'mBridge' introduced by NCC Bank through a formal ceremony.
'mPower' Visa Electron Debit Card, the NCCBL authority said, is a plastic card that can be used on any Visa affiliated ATM for cash withdrawal and on POS machines for purchases.
'mBridge' on the other hand is a Electronic Remittance Card which will be able to withdraw remittance by swapping card from all branches of NCC Bank and 250 rural outlets of TMSS. Beneficiaries can also also enjoy shopping using this card at any VISA affiliated merchant.
Referring to the crucial role of debit card system in bringing foreign remittance in the country, he said, "Recent World Bank report suggests that the use of illegal channels in sending foreign remittance is gradually decreasing which is a positive notion".
"To expedite the process, we are also encouraging the banks to set up exchange houses and from central bank, everyday we are giving approval for the establishment of such houses from different banks," he said.
Earlier, Chairman of NCC Bank Limited Yakub Ali in his speech said, "Our mBridge Foreign Remittance Payment Card, which is the first of its kind in the country, is aimed at facilitating the quick delivery of remittance to the remotest part of the country.
Managing Director Mohammad Nurul Amin said that the IT portfolio has gone through massive restructuring over the past year which have made possible the launching of these two debit cards.
Bangladesh Bank Governor Dr. Atiur Rahman Sunday asked the banks to rationalize their rate of debit or credit card fee in a bid to popularize the state-of-the-art payment system among a wider populace.
At the same time, he also asked the banks to notify the amount charged on the usage of debit or credit card in advance to the subscribers to bring more transparency in the process.
"There have been allegation from various corners that some banks are charging hefty or extra fees from their subscribers on the use of electronic card," BB Governor said at launching ceremony of two debit cards of NCC Bank Limited in the city.
"Therefore, we have already stipulated a provision that the rate of fees charged on the use of these cards must be notified to the central bank as well as to the subscribers in advance," he added.
"The rate of debit or credit card fees must be kept at a rationalized level so that it remains within the reach of the general populace," Atiur said, "and the subscribers must be kept updated about any futher change in the rate through website" he added.
Central Bank governor also observed that the increased competition among the banks would also work to gradually rationalize the fees.
"Now that all the banks one by one are offering credit card facilities, this would create a competition among the banks which ultimately would bring down the charges", he said.
He also expressed his hope that in the future debit card facilities would be used for providing agricultural loan as well as subsidy to the farmers.
Later, the Bangladesh Bank Governor also formally launched the two new debit cards - named 'mPower' and 'mBridge' introduced by NCC Bank through a formal ceremony.
'mPower' Visa Electron Debit Card, the NCCBL authority said, is a plastic card that can be used on any Visa affiliated ATM for cash withdrawal and on POS machines for purchases.
'mBridge' on the other hand is a Electronic Remittance Card which will be able to withdraw remittance by swapping card from all branches of NCC Bank and 250 rural outlets of TMSS. Beneficiaries can also also enjoy shopping using this card at any VISA affiliated merchant.
Referring to the crucial role of debit card system in bringing foreign remittance in the country, he said, "Recent World Bank report suggests that the use of illegal channels in sending foreign remittance is gradually decreasing which is a positive notion".
"To expedite the process, we are also encouraging the banks to set up exchange houses and from central bank, everyday we are giving approval for the establishment of such houses from different banks," he said.
Earlier, Chairman of NCC Bank Limited Yakub Ali in his speech said, "Our mBridge Foreign Remittance Payment Card, which is the first of its kind in the country, is aimed at facilitating the quick delivery of remittance to the remotest part of the country.
Managing Director Mohammad Nurul Amin said that the IT portfolio has gone through massive restructuring over the past year which have made possible the launching of these two debit cards.