The do’s and don’ts of agent banking
Monday, April 28, 2014
Agent banking is now a buzzword in the banking industry. Its importance is immense in paving the way for financial inclusion. But, many of us, including bankers, still do not have a clear perception of agent banking, its services, risks and responsibility and other regulatory issues.
Agent banking was first introduced in Brazil in 1999. Then it was introduced in other countries of Latin America, namely Peru (2005), Columbia (2006), Bolivia (2006), Ecuador (2008), Venezuela (2009), Mexico (2009) and Argentina (2010). Other countries in the world adopting this model are Pakistan, the Philippines, Kenya, South Africa, Uganda, India, etc.
According to a circular issued by the Bangladesh Bank (CC) on December 09 last, “Agent Banking means providing limited-scale banking and financial services to the underserved population through engaged agents under a valid agreement, rather than a teller/cashier. It is the owner of an outlet who conducts banking transactions on behalf of the bank.”