Agent banking accounts in Bangladesh have doubled in just one year ending in March this year,

with the service now at the doorstep of the rural people. This new mode of banking is gaining
popularity among the rural people as the clients are allowed to keep deposits and withdraw cash
through the outlets operated by the agents without entering the branches of banks while it is
cheaper too. The number of accounts for agent banking has increased to 14.69 lakh under 16 banks
at the end of March this year against 7.12 lakh under 13 banks in March, 2017.

At present, 57 scheduled and six non-scheduled banks are operating in the country. Of them,
Dutch-Bangla Bank Limited, Bank Asia, Al-Arafah Islami Bank, Social Islami Bank, Modhumoti
Bank, Mutual Trust Bank, NRB Commercial Bank, Standard Chartered Bank, Agrani Bank, First
Security Islami Bank, Midland Bank, City Bank, Islami Bank Bangladesh, Premier Bank, United
Commercial Bank and AB Bank were operating agent banking.

The number of agent banking accounts was 8.73 lakh in June last year, 10.38 lakh in September
of the year and 12.14 lakh at the end of December, 2017. With this increase in the number of
accounts, the amount of deposits with the agent banking system is also on the rise.
As per Bangladesh Bank data, deposits in the accounts has increased to Tk 1,634 crore in March
this year from Tk 481.38 crore a year ago. Al-Arafah Islaim Bank managed to attain the highest
Tk 697.24 crore deposits from its 83,784 agent banking clients, while Dutch-Bangla Bank attained
the second highest Tk 485.25 crore from its 8.85 lakh agent banking clients.

Besides receiving inward remittances and keeping deposits, six banks —Bank Asia, Al-Arafah
Islami Bank, Modhumoti Bank, Mutual Trust Bank, City Bank and Dutch-Bangla Bank — have
disbursed Tk 122.25 crore loans among their clients. Of the banks, Bank Asia disbursed more than
90 per cent or Tk 117.10 crore while Al-Arafah Islami Bank Tk 4.01 crore. Inward remittance sent
through the agent banking increased to Tk 2,673 crore as of March of 2018 while the figure was
Tk 1,982.01 crore a year ago. The number of outlets operated by the agents increased to 4,905 as
of March this year from 3,023 as of March last year.

Agent banking offers limited banking and financial services to the underserved population by
engaging representatives under a valid agency agreement. It is the owner of an outlet who conducts
banking transactions on behalf of a bank.

The BB issued the agent banking guidelines in 2013 but the licensees started full-fledged operation
in 2016. Among the banks, Dutch-Bangla Bank and Bank Asia led the agent banking market as of
March this year. Of the total accounts, 60 per cent belonged to Dutch-Bangla Bank and 26 per cent
to Bank Asia.