Booth Banking in Bangladesh

Bangladesh Bank issued a circular allowing banks to operate ‘banking booth’ with a view to bringing unbanked and underprivileged people under the banking network. Such booths would be economical for the customers, said the circular issued by the BB’s Banking Regulations and Policy Department. At least two officers will be deployed at such booths, which will be not more than 1,000 squat feet. Fees, charges and commission of banking services will be less at such banking booths compared with branches. Transactions at the booths will be carried out on a real time basis and customers will get instant SMS and printed slip against their transactions. The booths, however, will not be allowed to carry out any sort of foreign transaction. To set up such booths, the banks must submit application to the central bank along with decision of its board of directors. The central bank, however, preserves the rights to close any such booth without giving prior notice. Under the central bank’s existing circular, issued on November 29, 2012, banks are allowed to operate SME and farm loan branches, collections and electronic booths as business development centers. The banking booths will now also be treated as business development centres of the banks, said the new BB circular. As per the central bank’s circular issued on Thursday, such booths will be regulated under the central bank’s rules and regulations for providing limited scale services. Such booths will be operated within a limited expenditure under the supervision of a nearby full-fledged branch of a bank.