The card issuer banks would pay Tk20 to the booth-owner bank for each transaction, but the card issuer bank could charge highest Tk10 from their clients

Clients of banks under National Payment Switch of Bangladesh (NPSB) would enjoy lower charge for inter-bank ATM (automated teller machine) transactions from April 1.

The card issuer banks would pay Tk20 to the booth-owner bank for each transaction, but the card issuer bank could charge highest Tk10 from their clients, said a circular Bangladesh Bank issued yesterday.

At present, clients are charged at least Tk15 for each transaction.

Bangladesh Bank introduced the NPS in December last to create a common platform among the existing shared switches already built-up by different private sector operators.

The operation of the NPS started yesterday with seven participant banks.  

The NPS project was taken by the BB to bring all the ATM card holders of different banks under one umbrella so that any card holder of any bank can draw money from any booth through the inter-operability system.

According to the circular, card issuer bank would pay charge of Tk5 to the booth-owner bank for balance inquiry or take mini-statement by using ATM of other banks.

Card issuer bank could also charge it from their clients.

ATM card issuer might also be refrained from imposing any charge on their clients. Bangladesh Bank would not charge on its clients at this moment for maintaining the NPSB.

There is financial involvement in setting up of ATM booths, maintenance, ensuring security and storing cash. As a result, expenditure of the ATM owner banks will increase in providing the services to the other banks’ clients.

In this context, Bangladesh Bank imposed the minimum service charge on transactions and another service for using one bank’s ATM by other banks’ clients, said the circular. 

The government has formed a six-member committee to recommend measures within two months to help prevent burglary at the state-owned banks.

The committee of the Banking and Financial Institutions Division (BFID) would make surprise visits to any branch of the eight state-owned banks to see on ground the actual security condition of the branches, said an official yesterday.

He said the committee was formed in the backdrop of burglary in Bogra and Kishoreganj branches of Sonali Bank.

Earlier, Banking Division Secretary Aslam Alam had said they formed a committee, headed by BFID’s additional secretary Amalendu Mukherjee.

Other members of the committee are Bangladesh Bank Executive Director of SM Muniruzzaman and deputy managing directors of Sonali, Janata, Agrani and Rupali banks. It could co-opt any officers and experts, if necessary.  

According to a circular issued yesterday, the committee will give suggestions after receiving related recommendations from state-owned banks. It would regularly evaluate and monitor the security and vault management of the bank branches after the inspection.   

The committee will also look after the insurance policy and rules for vault and security, and seek help from Bangladesh University of Engineering and Technology to enhance the technical standard of the strong rooms, vaults and other safety aspects.

Meanwhile, Sonali Bank board formed 61 teams to monitoring the security management of every chest branches of the across the country. 

 Export Import Bank of Bangladesh Limited organised a traditional Mezban for its clients at “The King of Chittagong” recently.

Md. Abdul Mannan, MP, Habibullah Dawn, Major (Rtd) Khandaker Nurul Afsar, Alhaj Md. Nurul Amin, Mohammad Omar Farooque Bhuiyan, Anjan Kumar Saha, Abdullah Al Jahir Swapan, Directors, Dr. Mohammed Haider Ali Miah, MD of EXIM Bank, along with chairmen and directors of different banks, top executives were present at the Mejban.

Bangladesh Bank has recently asked scheduled banks to submit business plan on how to bring down their excess investment limit in the capital market by July 2016.

To this end, the central bank issued separate letters in the last few weeks to managing directors and chief

executive officers of the banks, whose investment limit was now hovering higher than the BB’s ceiling, asking them to place their plan.
As of December last year, banks and their subsidiaries’ exposure stands above 50 per cent of their capital on an average. It stands at 150 per cent for many.

The central bank set separate deadline for the banks to place their business plan to the BB, an official of the

central bank told New Age on Sunday. 
He said that the central bank had taken the initiative, as the capital market would face a difficult situation if a

number of banks withdraw their investment jointly.

Under the circumstances, the BB asked the banks to bring down their excess investment gradually.

According to the latest BB circular, the market value of total investment of a banking company in capital

market on consolidated basis shall not exceed 50 per cent of the sum of its consolidated paid-up capital,

balance in share-premium account, statutory reserve and retained earnings in accordance
with their latest audited financial statements.

Besides, the banks, which run subsidiaries for the capital market investment, have to reduce their exposure in the capital market in line with the central bank’s directives.  

Previously, banks’ exposure-limit on the stock market was 25 per cent of their respective capital.

At a bankers’ meeting, the BB governor on February 18 warned the banks against excessive exposure to the

capital market in a bid to avoid a bubble burst witnessed in the previous tenure of the Awami League  government.

The stock market saw a boom when the Awami League-led government came to power in 2009. 

The market later went through a debacle, which analysts blamed on excessive investments by the banks.

On September 16, last year, the central bank had asked all the commercial banks to reduce their capital

market exposure to 25 per cent of their equity by July 2016 for the first time to comply with the new bank company act.
The BB, however, changed the banks’ investment ceiling in the capital market on February 27, 2014.

The Modhumoti Bank Independence Cup Football tournament starts from March 22 at Bangabandhu National Stadium, Kazi Salahuddin, President of Bangladesh Football Federation stated this at a press conference at

Bangladesh Football Federation (BFF) conference room yesterday. Modhumoti Bank came forward to sponsor the tournament and vowed to support football in the MoU signing and draw ceremony at the BFF conference

room. Twelve teams are participating in the tournament. The teams are, BJMC, Feni Soccer, Rahmatganj, Abahani Ltd, Dhaka Mohammedan, Arambagh, Sheikh Jamal, Muktijoddha, Uttar Baridhara, Sheikh Russel, Brothers Union, Chittagong Abahani.

 
Sheikh Fazle Noor Taposh, MP, the chairman of the Executive Committee of Modhumoti Bank said, “I believe

football is still the mass people’s game where everyone enjoys the passion of the beautiful game, we are here to support football and believe it will one day fulfil the expectations.”

BFF president Kazi Salahuddin said, “I welcome Modhumoti Bank in our football world, I have every belief that

Bangladesh would become the top footballing nation in the sub-continent and we need some support from

the sponsors, I hope Modhumoti Bank will continue the involvement with football.” 

Director of the Bank, Mijanur Rahman, BFF Senior Vice President Abdus Salam Murshedy, executive committee members were also present at the occasion.