Dhaka: Disbursement amount of inward remittances through agent banking rose 20.87 percent to Taka 1,81,204.73 crore at the end of March 2025. At the end of March 2024, the figure was Taka 149,916.40 crore, which increased in December 2024 to Taka 1,73,390.72 crore.
According to Bangladesh Sangbad Sangstha, the quarterly report on agent banking published by the Bangladesh Bank (BB) highlights that during the quarter of January to March, the amount of inward remittances distributed by the agent outlets increased by 4.51 percent over the previous quarter. A senior official of the central bank noted that the significant amount of remittances channeled through agent banking is attributed to quick delivery of remittances to the beneficiaries' doorsteps.
The increase in inward remittances through agent banking is seen as a result of the government's initiative of providing a 2.5 percent cash incentive on inward remittances. Moreover, banks' financial literacy campaigns focusing on the theme 'Enhance Social Awareness to send Remittance through Legal Channel', announced by Bangladesh Bank, are expected to positively impact remittance inflow.
The official added that agents are crucial in this process as customers receive doorstep banking services promptly. Consequently, agent banking is becoming a popular channel for inward remittance distribution. The report indicates that agent banking accounts opened in rural areas are the primary recipients of the remittance disbursed, receiving 90.17 percent of March 2025's total. In contrast, urban area accounts received only around 9.83 percent or Taka 17,803 crore.
The top five banks hold a 95.46 percent share of the total inward remittances distributed through agent banking till March 2025. Islami Bank Bangladesh PLC ranks the top with Taka 96,427.29 crore, which is 53.21 percent of the total. Dutch-Bangla Bank PLC distributed 26.98 percent, Bank Asia PLC 7.76 percent, Al-Arafah Islami Bank PLC 4.34 percent, and Agrani Bank PLC 3.17 percent.
Abdul Quaium Chowdhury, deputy managing director of Premier Bank PLC, stated that the rising trend of agent banking, especially in rural areas, suggests potential for integrating the rural unbanked population into formal banking services. He mentioned that the flow of remittances into the country is on an upward trend due to government measures to streamline the legal channel for encouraging non-resident Bangladeshis (NRBs) to send money home.
Bangladesh Bank introduced agent banking in 2013 to provide a safe alternative delivery channel of banking services to under-served populations, primarily those in geographically remote areas. Customers can access various banking services, including deposits, loans, remittances, payment services, and government social safety-net benefits through agent banking outlets.
This model is gaining popularity as a cost-effective and convenient delivery channel for the masses who would otherwise remain beyond the reach of conventional banking services. Banks conduct their agent banking activities in line with the Prudential Guidelines for Agent Banking Operation in Bangladesh, issued on September 18, 2017, covering aspects like the agent approval process, permissible activities, and responsibilities of banks and agents. It also addresses requirements for anti-money laundering and combating financing of terrorism (AML/CFT), customer protection, and business continuity to ensure the safe and effective proliferation of agent banking in the country.