Former Bangladesh Bank Deputy Governor Ibrahim Khaled agrees with former Governor Mohammed Farashuddin’s view that mobile banking is giving rise to corruption.
Illegal banking transactions have emerged as a major risk, he said. “Illegal transactions through mobile and agent banking have become a matter of grave concern.”
Khaled made the remarks at an annual conference of Bangladesh Institute of Bank Management or BIBM in Dhaka on Monday.
The central bank has shut more than 3,000 mobile banking accounts over allegations of money laundering and illegal transactions.
“The central bank has begun working on these illegal transactions. We have to identify these transactions because they are a major barrier to inclusive banking,” he said.
“Though mobile and agent banking has played an important role in making banking more inclusive, it is still a matter of major concern.”
Mobile companies petitioned the central bank for mobile banking last year, Khaled said. But the Bangladesh Bank did not respond because it did not have BTRC approval.
“The Bangladesh Bank is not the regulator of phone companies. This is why it had no choice but to dismiss the petition.”
“It is, however, the Bangladesh Bank’s sole responsibility to regulate banks and financial institutions strictly to ensure an inclusive economy.”
On Nov 21, former Bangladesh Bank Governor Mohammed Farashuddin criticised mobile banking as a form of ‘looting’.
Sharing his experience with an audience at the Anti-Corruption Commission’s founding anniversary in Dhaka, he alleged that the service providers are ripping off the people.
Bangladesh Bank Deputy Governor SK Sur Chowdhury also spoke at the BIBM event on Monday, but had a more positive take on mobile banking.
“Mobile banking is now being used for inter-bank transactions. As a result, the marginalised and people living in remote areas are being able to use banking services.”
“Bangladesh wants to make mobile banking more customer-friendly. This will have a massive impact on making the economy more inclusive. This is why the Bangladesh Bank is undertaking various projects, including school banking.”
Source: Bdnews24.
