BTRC endorses cell phone banking
Saturday, 15 November 2008
Naim-Ul-Karim
The Bangladesh Bank is expected to allow mobile banking in the country after the Bangladesh Telecommunication Regulatory Commission (BTRC) has endorsed the introduction of such service.
Sources said Thursday the BTRC has sent its opinion to the central bank favouring introduction of mobile banking, which will facilitate users to bank transactions.
"BTRC has sent a green signal after the Bangladesh Bank sought its opinion on introduction of mobile banking in the country," a senior central bank official said.
The central bank has taken the move after the country's leading cell phone operator Grameenphone submitted an application in December last year for a licence to operate mobile phone banking.
On receipt of the cell phone company's application, the BB held a series of meetings with the government agencies and commercial banks, and studied such service already introduced by some Asian countries, including Thailand and the Philippines.
Currently, phone and online banking in the country only offer services such as information about the balance in accounts and statement of transaction. But the mobile banking will allow fund transfer, paving the way for money transaction through cell phones across the country, the BB sources said.
They said the BB has already drafted a policy titled "Bangladesh Mobile Payments Directive 2008". Once the policy is approved, banks will also be allowed to seek licence to offer the services.
A senior BTRC official, however, said a mobile operator, interested in mobile banking, will be required to form a separate entity and get licence from the central bank.
"Banks will also be able to conduct mobile banking signing agreement with any telecom company with approval of the BTRC," he added.
Sources said the central bank, which also received a set of recommendations from the Association of Banks Bangladesh (ABB), will soon sit to finalise mobile banking policy and set required guidelines.
At the initial stage, the central bank might allow mobile banking services for transfer of domestic remittances.
The Bangladesh Bank is expected to allow mobile banking in the country after the Bangladesh Telecommunication Regulatory Commission (BTRC) has endorsed the introduction of such service.
Sources said Thursday the BTRC has sent its opinion to the central bank favouring introduction of mobile banking, which will facilitate users to bank transactions.
"BTRC has sent a green signal after the Bangladesh Bank sought its opinion on introduction of mobile banking in the country," a senior central bank official said.
The central bank has taken the move after the country's leading cell phone operator Grameenphone submitted an application in December last year for a licence to operate mobile phone banking.
On receipt of the cell phone company's application, the BB held a series of meetings with the government agencies and commercial banks, and studied such service already introduced by some Asian countries, including Thailand and the Philippines.
Currently, phone and online banking in the country only offer services such as information about the balance in accounts and statement of transaction. But the mobile banking will allow fund transfer, paving the way for money transaction through cell phones across the country, the BB sources said.
They said the BB has already drafted a policy titled "Bangladesh Mobile Payments Directive 2008". Once the policy is approved, banks will also be allowed to seek licence to offer the services.
A senior BTRC official, however, said a mobile operator, interested in mobile banking, will be required to form a separate entity and get licence from the central bank.
"Banks will also be able to conduct mobile banking signing agreement with any telecom company with approval of the BTRC," he added.
Sources said the central bank, which also received a set of recommendations from the Association of Banks Bangladesh (ABB), will soon sit to finalise mobile banking policy and set required guidelines.
At the initial stage, the central bank might allow mobile banking services for transfer of domestic remittances.