DHAKA, Dec 20, 2024 (BSS) - Loan disbursements through agent banking
surged 48.60 percent year-on-year (Y-o-Y), reaching Taka 21,089.81
crore at the end of September, 2024, on the back of improved access to
finance for rural people, according to Bangladesh Bank (BB) data.

In September last year, loan disbursements stood at
Taka 14,192.65 crore.

As on 30 September 2024, 31 banks offered agent banking services
through 21,367 outlets operated by 16,011 agents. The number of
accounts opened through agent banking reached 23,489,109 of which
11,704,846 accounts (49.83 percent) belong to female customers and
20,173,995 accounts (85.89 percent) belong to the customers of the
rural areas.

At the end of September 2024, the amount of deposit accumulated in
the agent banking accounts is Taka 39,529.37 crore and the cumulative
amount of inward remittances disbursed through agents reached Taka 
1,65,659.23 crore.

Bankers observed that with the gradual expansion of agent banking,
many people who were previously excluded from banking services at the
rural level can now easily avail the services themselves, which is the
key reason behind the increased flow of such loans.

Talking to BSS, a senior official of the central bank said agent
banking is playing a pivotal role in providing adequate financial
services, especially for rural women, small business entrepreneurs and
beneficiary of remitters.

Considering the fact of loan deposit ratio and the portion of lending
to women or entrepreneurs, he said, Bangladesh Bank is constantly
encouraging banks to facilitate CMSME, women entrepreneurship loan and 
some refinance schemes for marginal people through agent banking.

Overall, agent banking is having a significant positive impact on
financial inclusion and, therefore, has the potential to fill up the
market gap created by the insufficient outreach of branch banking, he
added.

Abdul Quaium Chowdhury, Deputy Managing Director of Premier Bank PLC, 
said that the rising trend of agent banking, especially in the rural
areas, indicates that there is a remarkable potential to bring the
rural unbanked people under the umbrella of formal banking services.

He said the rise in the number of customers in the banking system is
due to the expansion of new services of the banks.

Moreover, agent banking is flourishing because of the efforts of banks
to provide services at the grassroots through agent banking, he added.

In the future, he said, agent banking will become more popular.

Besides, he said, many banks have started offering small loans through
agent banking, due to which the number of loans are increasing.

Bangladesh Bank introduced agent banking in Bangladesh in 2013 with a
view to providing a safe alternate delivery channel of banking
services. The targeted customers of this service were the under-served
population who generally live in geographically remote locations that
are hard to reach by the formal banking networks.

Customers can avail various banking services including deposits,
loans, overseas and local remittances, payment services (such as 
utility bills, taxes), and receiving government social safety-net
benefits through agent banking outlets.

This model is thus gaining popularity as a cost-effective and
convenient delivery channel to the mass people who would otherwise
have remained beyond the reach of conventional banking services.

Banks are operating their agent banking activities in line with the
Prudential Guidelines for Agent Banking Operation in Bangladesh,
issued by Bangladesh Bank on 18 September 2017, covering various
aspects including the agent approval process, permissible activities,
responsibilities of the banks and the agents.

It also focuses on the requirements for anti-money laundering and
combating financing of terrorism (AML/CFT), and customer protection
and business continuity to facilitate safe and effective proliferation
of agent banking in the country.