Final assessment

Corse code: BA- 2323

Fundamentals of Banking

Submitted by
Niloy Sarkar Anik
ID No: 20182004101

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 Answering to the question no (a) of (01)
 Assignment on Agent Banking in Bangladesh.

 Introduction.
Agent Banking has been introduced in Bangladesh in 2013 through a guideline issued by
Bangladesh Bank. The purpose of introducing Agent Banking is to provide a safe and secured
alternative delivery channel for banking services to the under-privileged, under-served population
who generally live in a geographically remote location and beyond the reach of the traditional
banking network. This has allowed the banks to expand their business and accelerate financial
inclusion using intermediaries as agents. A limited number of banking services is provided to the
customers through an agent of a bank and this method is gaining popularity as a cost-effective
delivery channel to the bank as well as a convenient way of getting banking services to the
customers Bangladesh Bank is issuing this guidelines as per authority conferred to it by Article
7A(e) of Bangladesh Bank Order, 1972, Section 45 of Bank Company Act, 1991 and Section 4 of
Bangladesh Payment and Settlement Systems Regulations, 2009. All the activities related to Agent
Banking are being governed according to this guideline.
 What is Agent banking?
Agent Banking means providing limited scale banking and financial services to the
underserved population through engaged agents under a valid agency agreement, rather than a
teller/ cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
 Starting of Agent Banking Service.
Bangladesh Bank introduced agent banking in December 2013 with the aim of including rural
people who were out of the ambit of banking services. Bank Asia was the first private bank to
offer the new concept of banking to people.
 What kinds of facility customers get?
Agent Banking Service is becoming more reliable among rural people. Private Banks are trying
to make a foray into areas where no formal banking services are available. When the banking
sector is in turmoil over the issue of dealing with the non-performing loans, then Agent Banking
Service has made significant contribution to rural economy over the past few years and it is
becoming increasingly popular in the grass-roots areas across the country. The reason behind the
success story of this service is also providing the unbanked population of the country with quick
and cost-effective banking services at their doorsteps.As per the central bank rules, the maximum
transaction ceiling for agent banking customers is Tk 25,000.The agents, however, cannot issue
cheque books or bank cards.An agent banking customer will be able to make a maximum of four
transactions a day—two withdrawals and two deposits. But there is no limit in withdrawal of
inward remittances.
Nowadays, many services are available at rural level, whereas people had to go to towns,
earlier, for these purposes.
1. People are getting remittances from abroad.
2. They can now pay their utility bills through this channel.
3. Some youth are also finding new opportunities of employment as agents.
4. People can transfer money.
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 5. Clients are allowed to have deposits and withdraw cash through the outlets operated by
agents without visiting a bank branch.
6. Agents conduct banking transactions on behalf of a bank.
7. Loan disbursement facility is a new inclusion to the agent banking service.
8. Different deposit schemes are provided by agent banking system as main branches of bank.
9. Cash payment under the safety net of government.
10. Balance inquiry.
11. Collect application and documents on behalf on main bank.
12. Receiving clearing cheque.
13. Loan recovery.
14. Other function like paying insurance premium.
So, during this pandemic epidemic of noble corona virus (covid-19) agent banking playing a great
role from spraying virus. Staying home and staying in local area people are getting banking service
through agent banking.
 Present situation of Agent Banking
service.
Up to the 3rd quarter of 2019 (30
September 2019), Bangladesh Bank has
issued license to 22 banks for operating
Agent Banking activities in Bangladesh.
Currently 19 banks are operating Agent
Banking activities.
 Top 5 Banks' Share of total Number of Outlets.

 Conclusion.
In the 3rd quarter of 2019, Agent Banking has a positive growth in all the areas including the
number of agents, outlets and accounts and also the amount of deposit, loan disbursed and inward
remittance distributed. 87% of the outlets, 83% of the accounts, 74% of the deposit, 80% of the loan
and 90% of remittance are in the rural areas. Therefore, it can be said that, Agent Banking has been
more beneficial for rural people than urban people as the banks are giving duly preference to expand
their business in rural areas through agents. However, the banks should give more efforts to enhance
the financial inclusion of females as the numbers show that the females are lagging behind compared
to their male counterparts. More banks should start disbursing loan through this alternative delivery
channel as this can greatly increase the economic activities in the rural areas and improve the lifestyle
of poor people. With the collective effort of all the stakeholders, the Agent Banking is expected to
accelerate the deepening of financial inclusion and contribute to the inclusive growth of the economy
in the coming days.
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 Answering to the question no (b) of (01)
 Assignment on opening a savings account by a privet service holder.

 Introduction.
Before opening a bank account we have to know what is bank account? Why a bank acoount in
much needed? The answer is – a bank account is an identity recorded by a bank and through which
bank makes transaction with them. Commercial banks main function is to collect deposit from the
public and the secondery work is provide that deposit money who needs it as loan. So an account is
very necessery to keep records of ones who deposits the money to his/her name. A bank bank account
is unique as ones record never be mixed with another.
 Bank Accounts.
Many bank specialize bank account by different names and by different characteristics. Generally
bank keep records under three different kinds of account, They are 1. Current account, 2. Savings
account, and 3. Fixed diposit account.
 Savings Account.
Through savings account an account holder is given a pass book for diposit money, cheque book for
withdraw money. Against ones diposit bank provide interest in different rate. The account has no
restriction to deposite money but withdrawal has restriction. No loan is provided against savings
account. A minimum amount has to be kept.
 Eligibility
 Age: At least 18 years
 Nationality: Bangladesh

 Required Documents
 NID/Birth certificate/Passport
 Photograph – 2 Copies
 Nominee photograph – 1 Copy
 Nominee’s NID/Birth certificate/Passport
 Income source document
 E-TIN
*Bank may ask any additional document if required so.

 Sequential steps of opening a savings account.

The privet service holder opening ones savings account is going to need to present

1. Decide the Type of Account.

2. Approace to decided bank and meet its bank officer.
3. Gather personal information and documents.
 Social security number
 A form of ID ( Driving licence or passort)
 Initial deposit amount
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4. Open a Savings Account.

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 It now ready to apply! After making first deposit, whether it’s in person or over the phone, ones
can begin wiring funds from other accounts in if he/she wish. If it’s his/her very first account, should
take time to read about the bank and its policies before hiting with confusing fees. Some steps of this
phase is given below:-

 Provide contact details.

 Submitting nomininee information.
 Select a single or joint account.
 Chooseing deposit amount.
 Accept the terms and conditions.
 Officers verification of the individuals savings account opening form.
 Submiting application.

5. Close any old Accounts.

Only applicable if you had an old account, be sure to speak with your employer about any direct
deposits that were going into the old account, as well as automatic bill payments you have going out of
it to cover bills.

6. Diposit initial amount in newly opended bank account.

 My suggetion to make account opening process easyer.

Now a days it is the age of globalization. Ones can open a bank account od swiss bank staying
home by online. Opening a bank account through online is very easy and efficient. It takes 20-30
minuites. Banks are providing online account opening form. He who wants to open bank account
through online he/she have to visit the web site of decided bank fill up the form with personal
information and submit it, send documents security number and bank automatically get ID, TIN,
Driving licence through national website. At the time of diposit ones have to go to the bank or if
he/she want to transfer fund from other account just have to insert bank account number.

So, account opening in online is very easy and efficient. My suggation is to open bank account in
online.

 Conclusion.
At last I can say that, now a days every individuals should have a bank account. In every phase of
life a bank account is needed. Starting from individual welfare to broad national economic growth
bank and a bank account is very helpful. Bank deposit and savings making capital and that capital
helps economic development. Corporate people cane save money for retirement after life through an
account. So, a bank account is very important.
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