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Bank & Finance - October 30, 2023

Bangladesh in risky cashless economy

Staff Correspondent: If you get a loan from a bank with a few clicks sitting at home, or you can deposit money while having tea at a tea shop. If you can withdraw money from the bank without writing a check, without standing in line, then there is no problem. And digital bank is coming for hassle free transaction of customers.
Many may wonder how these tasks will be completed. Yes, all work will be done on internet. This digital bank app will be available on the internet itself. There will also be a website. All work can be done through this app.
Though the system is highly risky because there are many financial scams held in Bangladesh including $81 million heist from Bangladesh Bank. There are many incidents been occurred in the banking payment system due to the poor online security system.
In the digital system, there is no need to run around with any documents to open this digital bank account. To open an account, just click on the bank’s own website or app and they will tell you what documents are required. However, the account will be opened only after uploading your name, address and other documents in the bank’s app to open the account.
If someone wants to take a loan from this digital bank, he has to upload certain documents in the same way. There is no lobbying or otherwise spending money to get a loan here. But only those who will get loan from this bank are small traders. Big businessmen will not be given any kind of loan. Loans will not even be given for setting up any industrial establishments.
Once the documents of the person applying for the loan are uploaded, the information will be scrutinized a lot. One of these is that whether he is in default of any kind of loan or not, it will first be verified from CIB of Bangladesh Bank. A special method will be used for this. The method by which the work will be completed quickly.
The activities of this bank will not be paper-based. However, the head office of this bank may require paper as per requirement. But most of the work will be done on the basis of technology.
If a customer has any kind of complaint about any activity of this digital bank, it can be complained in person. In addition to this, complaints can be made through the app. And these complaints will be resolved quickly.
There will be special arrangements through the app for daily transactions. And many cases will be centrally controlled. This digital bank will act like any other bank in accepting expatriate remittances. But no one has to run around with any documents. For now, customers can use ATM booths of different banks to withdraw money. Can even use development, cash and means.
It is known that Bangladesh Bank has received a total of 52 applications for Digital Bank from last June 21 to August 17. Among them, Bangladesh Bank has given consent letter to 9 applications collectively and individually.
Bangladesh Bank sets a guideline for getting digital bank. Based on this, the Board of Directors of Bangladesh Bank approved on October 22. However, the guidelines give several conditions to the applicant. One of them is the technical experience. Not only that, the applicant has to attach the appointment letters of various officers starting from the managing director of the bank. On the basis of which this digital bank will be managed. And one of the conditions is that no officer of the applicant’s bank can be a defaulter.
The fixed capital for each sponsor is Tk 50 lakhs. And the capital of the bank has been kept at Tk 125 crores. If an authorized bank deems it necessary to provide more capital. Then no personal loan can be taken to finance that capital. And the loan amount should be shown in their income tax file.
Basically, digital banks will be technologically driven. This bank will be operated without any branch or sub-branch. The main aim of this bank will be to deliver the services of this bank to the people of the village. And that will be without any paper – which will make the economy of Bangladesh cashless.

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