Agent Banking in Bangladesh
What is an Agent Banking?
Agent banking in Bangladesh is the limited provision of banking and financial services to underserved populations through agents employed under a valid agency contract rather than teller machines or cashiers. It is usually an outlet owner who handles banking transactions on behalf of the bank.
Key Features of the Agent Banking in Bangladesh
- Agent banks usually provide banking services operated by a sole proprietorship where the entire service of a bank is operated.
- An agent bank provides the services of a bank where the bank completes all their services.
- An agent bank acts as a representative for an individual or business seeking to do business in another country.
- Agent Bank Banks in Bangladesh represent an underdeveloped group where the underprivileged people live.
- There are various banks including investment banks that can be considered as agent banks.
Advantages of Agent Banking Service
A bank partners with a bank to manage the financial and cash transaction needs of individual and business customers. Banks can generally provide credit assistance to customers and other banks by providing letters of credit or extending new credit. Now we see that one of the advantages of an agent bank is that it can operate internationally. These allow banks to expand their geographical presence to conduct business, for various reasons
Types of Agent Banks
Foreign agent bank
A foreign bank doing business in Bangladesh on behalf of its parent bank may be known as a foreign agent bank in other countries. These banks conduct business under Bangladesh Bank and are audited annually by Bangladesh Bank Reserve.
Investment bank
Investment banks or financial institutions often act as agent banks in institutional investment deals such as syndicated loans. An agent bank acting as a syndicate manager will use a contract with an issuer to arrange a syndicated loan. Each agent bank is paid a fee for its own deal management services. Once the deal is closed, it may also be responsible for overseeing the payments and terms of the syndicated loan across all the loans involved in the deal.
Third party agent bank
Sometimes a business may require the assistance of an agent bank to launch a new service. Partnering with a third-party agent bank to handle its credit business typically requires a bank’s assistance in offering loan programs.
Powers of Agent Banks
- Account Opening
- Cash Deposit / Withdrawal
- Fund Transfer (Internal & R.T.G.S)
- Inward Foreign Remittance
- Utility Bill Collection
- Debit Card & Chequebook Request & Delivery
- Payroll Management
- SMS Banking & Internet Banking
- Receiving Clearing Cheque
- Loan Processing & Loan Recovery
- Processing of Credit Card Facility
- Generation of Mini Bank Statement
- NRB banking
- Account information/ profile management service
- Any other activity as Bangladesh Bank may prescribe from time to time.
Products List
- Deposit
- Loan
- SME Banking
- SMS Banking
- Internet Banking
- Card Service
- School Banking
- Corporate Finance
Bank Account Opening Required Documents
- Copy of National Identity Card (NID)
- Recent passport size photo
- Proof of source of funds
- Copy of Nominee’s National Identity Card / Passport / Birth Certificate
- Documents with which account can be opened:
- E-TIN/Passport/Driving License/Utility Bill/Birth Certificate
Schedule of Agent Banking Charges
- Customers can enjoy cash deposits, cash withdrawals and fund transfers (Intra Bank and BEFTN) completely free of charge at the outlet where they have opened the account.
- Customers can enjoy completely free cash deposits, cash withdrawals and fund transfers and bill payments at all other agent outlets of the bank
- The account holder can conduct free online banking at all branches of the bank without any charges.
Bank List of Agent Banking in Bangladesh
| Bank Name | Agent Services | Agents List |
|---|---|---|
| AB Bank | · Account Opening · Cash Deposit / Withdrawal · Utility Bill Collection · SMS Banking & Internet Banking · Loan Processing & Loan Recovery · Processing of Credit Card Facility · Generation of Mini Bank Statement · Other banking services. | View Agent List |
| Al-Arafah Islami Bank | · Cash deposit and cash withdrawal · Inward foreign remittance · Facilitating utility bills payment · Facilitating fund transfer · Balance inquiry · Receiving of clearing cheques · Banks other service | View Agent List |
| Bank Asia | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Insurance premium collection · SME Loan processing · SME Agricultural loan processing · Debit / Credit card processing | View Agent List |
| BRAC Bank | · Account Opening · Cash Deposit / Withdrawal · Utility Bill Collection · SMS Banking & Internet Banking · Loan Processing & Loan Recovery · Processing of Credit Card Facility · Generation of Mini Bank Statement · Other banking services. | View Agent List |
| City Bank | · Account Opening · Cash Deposit / Withdrawal · Utility Bill Collection · SMS Banking & Internet Banking · Loan Processing & Loan Recovery · Processing of Credit Card Facility · Generation of Mini Bank Statement · Other banking services. | Banking Salary |
| DBBL | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · SME Loan processing · Debit / Credit card processing | View Agent List |
| Eastern Bank | · Biometric Cash Deposit, Withdraw & Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Payment of salaries · SME Loan processing · Debit / Credit card processing | View Agent List |
| First Security Islami Bank | · Cash Deposit, Withdraw & Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Payment of salaries · SME Loan processing · Debit / Credit card processing | View Agent List |
| EXIM Bank | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · SME Loan processing · Debit / Credit card processing · Banks other services | View Agent List |
| Islami Bank Bangladesh | · Account Opening · Cash Deposit / Withdrawal · Utility Bill Collection · SMS Banking & Internet Banking · Loan Processing & Loan Recovery · Processing of Credit Card Facility · Generation of Mini Bank Statement · Other banking services. | View Agent List |
| Midland Bank | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · SME Loan processing · Debit / Credit card processing · Banks other services | View Agent List |
| Modhumoti Bank | · Cash Deposit, Withdraw & Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Payment of salaries · SME Loan processing · Debit / Credit card processing · Passport Fees · NID Correction Fees | View Agent List |
| Mutual Trust Bank | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Insurance premium collection · SME Loan processing · SME Agricultural loan processing · Debit / Credit card processing | View Agent List |
| NRB Bank | · Cash Deposit, Withdraw & Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Payment of salaries · SME Loan processing · Debit / Credit card processing · Passport Fees · NID Correction Fees | View Agent List |
| One Bank | · Cash Deposit, Withdraw & Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · Payment of salaries · SME Loan processing · Debit / Credit card processing · Passport Fees · NID Correction Fees | View Agent List |
| Prime Bank | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · SME Loan processing · Debit / Credit card processing · Banks other services | View Agent List |
| Social Islami Bank (SIBL) | · Cash Deposit · Cash Withdraw · Cash Transfer · Inward Foreign Remittance · Utility Bill Payment · Balance Inquiry · Mini Statement · SME Loan processing · Debit / Credit card processing · Banks other services | View Agent List |
| United Commercial Bank (UCB) | · Account Opening · Cash Deposit & withdrawals. · Fund Transfer to any UCB Account · Electronic Fund transfer through BEFTN · Small value loan disbursement and recovery of loan installments. · Utility bill payment. · Balance inquiry. · Receiving clearing Cheque. · Debit/Credit Card Request Processing. · UPay & internet banking registration. · Loan application sourcing | View Agent List |
Frequently Asked Question (FAQ)
Q: What is Agent Banking?
A: Agent Banking refers to the provision of limited-scale banking and financial services to underserved populations through an agent operating under a legal agency agreement.
Q: What is the difference between Branch Banking and Agent Banking?
A: In essence, both Branch Banking and Agent Banking provide similar services. The key difference lies in ownership: Branches are owned by the bank itself, while Agent Banking outlets are owned by third parties.
Q: Who can be a Bank Agent?
A: Any Bangladeshi citizen, either an individual or a company, can become a bank agent if they have a legal business entity with a valid trade license.
Q: What kind of business experience is required for agent banking?
A: To become an agent for banking services, any business with a valid trade license is eligible.
Q: Is there any age limit for potential agents?
A: Yes, interested individuals should be between the ages of 18 and 65 to apply as agents.
Q: Is there any educational qualification requirement for agent banking service?
A: Yes, interested applicants should have at least a minimum educational qualification of S.S.C or equivalent.
Q: Can a single agent apply for multiple Agent Banking Outlets?
A: Yes, an agent can apply for multiple Agent Banking Outlets, provided they have a business entity in the proposed or nearby locations.
Q: Can anyone be an Agent who is already an Agent of other Banks?
A: No, one person or company cannot be an agent for multiple banks simultaneously.
Q: Is there any mortgage required to obtain an Agent Banking license?
A: No, there is no mortgage requirement for obtaining an Agent Banking license.
Q: Is there any additional investment required after the establishment cost?
A: Yes, agents need to ensure that they have a cash balance and an Agent Transactional Account (A/C) balance ranging from BDT 10-20 lakh to facilitate daily transactions.
Q: What is the difference between a Bank Branch customer and an Agent Banking Outlet customer?
A: In general, there is no difference; all accounts are maintained within the same bank.
Q: Is there any extra charge required to maintain an account at an Agent Banking Outlet?
A: No, there are no extra charges for maintaining an account at an Agent Banking Outlet.
Q: Can Agent Banking customers access Internet Banking?
A: Yes, when a customer opens an account through Agent Banking, they can easily access Internet Banking services.
Q: How can Agent Banking customers check their account balance?
A: Agent Banking customers can check their account balance through various means, including Pull SMS, Internet Banking, or by visiting the Agent Banking Outlet.
Q: Can Agent Banking customers apply for a Debit Card and Cheque Book?
A: Yes, Agent Banking customers can apply for a Debit Card and Cheque Book through their respective Agent Banking Outlet.