Bangladesh Bank (BB) governor Dr Atiur Rahman said the central bank is working to ensure safe and low-cost monetary transaction by expansion of mobile banking services across the country.Dr Atiur said this while inaugurating the mobile banking services of Mercantile Bank Ltd on Thursday.

The BB governor said the central bank has given approval to 17 banks till February 16, of which 8 banks have already started mobile banking activities through various branches in cooperation with mobile operators' outlet.

Under the mobile banking system, a sender would simply need to deposit money with a bank branch, which has monetary transaction system via mobile, for sending money to a recipient anywhere in the urban or rural areas. The recipient will receive a SMS (Short Message Service) text regarding withdrawal of money from a nearby bank or a mobile operator's outlet by showing the SMS.

"By expansion of mobile banking, monetary flow to the rural areas would increase that would help reducing the discrimination in monetary distribution among people of urban-rural areas. It is safe and low-cost," Atiur said.

He said the central bank has issued a circular regarding the mobile banking that clarifies the rules, provisions and empowered banks of legal authorities for monetary transaction.

The governor said BB has set up an automated clearing house in its headquarters under Bangladesh Electronic Fund Transfer Network to facilitate all the online banking services.

He said the services customers have been enjoying under online and mobile payment system are delivery of remittance, disbursement of salaries, government allowances for designated clusters of people, monthly pension, utility bill deposition and payment of bills for shopping.

The inaugural function was presided over by Mercantile Bank chairman Abdul Jalil, MP. Among others, Support To Digital Bangladesh's project director (PD) Nazrul Islam Khan, PD of the One Household: One Farm project Prosnato Kumar Roy, vice-chairman of the Bank Morshed Alam and the Bank's other high officials were present.

Mercantile Bank officials said primarily the Bank would provide mobile banking services at 788 unions under nine districts through Union Information Centres (UICs). Meanwhile, the Bank has signed contact with the managements of 138 UICs.

The Independent/Bangladesh/ 17th Feb 2012