Dhaka: Disbursement amount of inward remittances through agent banking rose 21.16 percent to Taka 1,73,390.72 crore at the end of December 2024. At the end of December 2023, the figure was Taka 143,113.28 crore, which increased in September 2024 to Tk 165,659 crore, according to the quarterly report on agent banking published by the Bangladesh Bank (BB).
According to Bangladesh Sangbad Sangstha, in September 2024 quarter, the amount of inward remittances collected and disbursed by agents increased by 4.67 percent over the previous quarter. A senior official of the central bank mentioned that this rise in inward remittances through agent banking is a result of the government’s initiative of providing a 2.5 percent cash incentive on inward remittances. Additionally, banks’ financial literacy campaigns, focusing on sending remittance through legal channels, are expected to positively impact remittance inflow.
The official highlighted that agents are contributing significantly since customers can access doorste
p banking services quickly. Consequently, agent banking is becoming a popular channel for inward remittance distribution. The report indicated that agent banking accounts opened in rural areas have been the major recipients of the remittance disbursed, receiving 90.12 percent of December 2024’s total. In contrast, only around 10 percent or Tk 7,731 crore was received by those with agent banking accounts in urban areas.
The top five banks hold a 95.75 percent share of the total inward remittances distributed through agent banking till December 2024. Islami Bank Bangladesh PLC ranks first with Taka 92,300.11 crore, accounting for 53.23 percent of the total inward remittances distributed through agent banking. Dutch-Bangla Bank PLC distributed 26.92 percent, while Bank Asia PLC accounted for 7.98 percent, Al-Arafah Islami Bank PLC 4.43 percent, and Agrani Bank PLC 3.19 percent.
Abdul Quaium Chowdhury, deputy managing director of Premier Bank PLC, emphasized that the rising trend of agent banking, especially in
rural areas, indicates significant potential to bring rural unbanked people into formal banking services. He also pointed out that the flow of remittances into the country is showing an upward trend as the government has taken measures to streamline the legal channel for encouraging non-resident Bangladeshis (NRBs) to send money to the country.
Bangladesh Bank introduced agent banking in 2013 to provide a safe alternate delivery channel of banking services to the under-served population, usually residing in geographically remote locations that are hard to reach by the formal banking networks. Customers can avail various banking services through agent banking outlets, including deposits, loans, remittances, payment services, and receiving government social safety-net benefits.
This model is gaining popularity as a cost-effective and convenient delivery channel to the mass people who would otherwise remain beyond the reach of conventional banking services. Banks operate their agent banking activities in line
with the Prudential Guidelines for Agent Banking Operation in Bangladesh, issued by Bangladesh Bank in 2017. These guidelines cover various aspects, including the agent approval process, permissible activities, and responsibilities of the banks and agents. They also focus on 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.