Bangladesh Bank is going to allow private non-bank companies to set up and run automated teller machines and point-on-sale machines under agreements with banks in a bid to expand the services to more areas. A BB official told New Age on Monday that only commercial banks were now allowed to set up ATM booths and POS terminals to settle bank transactions. But, the banks are not interested in setting up ATM booths and POS terminals in the rural areas as they think that their earnings from the services in the areas is lower compared with that in the urban areas, he said. Besides, the banks are now imposing high charges against the merchants who use the POS terminals and due to the high charges the shop owners are showing little interest to settling transactions through the terminals. The banks will be compelled to lower the charges once the private companies are allowed to set up POS terminals. Due to high charges, the shop owners set up only 6,035 POS machines as of September 30, 2014 although the country’s business sector demands more terminals considering its volume, the BB official said. The central bank will impose a condition on the private companies who will be allowed to introduce the services that they must establish majority of their ATM booths and POS terminals in the rural areas, he said. The BB data showed that the banks established 6,035 ATM booths as of September 30, 2014. But, a very few ATM booths were set up in the rural areas. The banks have so far issued 72,85,805 debit cards, 5,77,864 credit cards and 1,02,787 prepaid cards. The issuance of such cards will increase once the private companies are allowed to set up ATM booths and POS terminals, the BB official said. The central bank’s initiative will also boost the country’s financial inclusion as the marginal people in the rural areas will be encouraged to be attached with the banking system if they are able to use ATMs and POS terminals, he said. The BB will also allow the agents of the banks to make payment through POS terminals to the clients meaning that the terminals will act as ATMs, the official said. He said the clients would also recharge their mobile phone using their debit or credit cards and they would be allowed to pay their utility bills through the cards. BRAC Bank managing director Syed Mahbubur Rahman told New Age on Monday that such initiative (allowing private companies to run ATMs and POS terminals) might result in an unhealthy competition between banks and private companies. The private companies will occupy a good amount of the profits the banks now get from the services if they (private companies) are allowed to establish ATM booths and POS terminals. He said the BB should impose a condition on the private companies that they set up ATM booths and POS terminals outside the city in a bid to avoid any possible unhealthy competition in the sector.