Home ›› 03 Jun 2020 ›› World Biz
The bank and financial institutions division of the finance ministry has directed the state-owned banks and financial institutions to introduce app-based banking services to check infection of coronavirus while implementing the government-announced stimulus packages to offset the Covid-19 shock on various sectors of the country.
In a letter sent to the chairmen and managing directors (MDs) of state-owned banks and financial institutions on Tuesday, the finance division urged the institutions to adopt Fintech (financial technology) to smoothen the banking transactions. Fintech is a relatively new technology that has been designed with automation and the improvement of user experience, to help businesses and consumers with their financial transactions.
The letter, however, instructed the institutions not to rely on foreign software companies.
Bangladesh Bank governor was also sent a copy of the letter which asked the banks and financial institutions to implement the instructions as soon as possible.
The government around a month ago declared various incentive packages worth Tk 103,116 crore -- 3.06 percent of the country's GDP (gross domestic product) -- in several phases to overcome the financial loss caused by the Coronavirus fallout. To implement the incentive packages, Bangladesh Bank under the government’s instruction has so far issued eight circulars.
Among the packages, Tk 5,000 crore has been allocated for providing working capital facility to export oriented industries, followed by Tk 20,000 crore for the affected small (including cottage industries) and medium industrial enterprises, Tk 12,650 crore for expansion of Export Development Fund (EDF), Tk 5,000 crore under Pre-Shipment Credit Refinance Scheme, and Tk 30,000 crore for the affected industries and services sector organisations.
Besides, a refinancing scheme of Tk 9,500 crore has been announced for subsidy in the agricultural sector, while Tk 5,000 crore to pump running capital into the agricultural sector.
Other allocations that have been made under the refinancing scheme are: Tk2,000 crore for Palli Sanchay Bank, Probsahi Kalyan Bank and Palli Karma Sahayak Foundation; Tk 2,000 crore for deferred interest subsidy of commercial banks, and Tk 3,000 crore for low income professionals, farmers and small/marginal traders for a period of three years.
The role of banks, especially state-owned banks, is crucial in implementing these bank-based incentive packages.
The central bank earlier asked the banks to implement the incentive packages in a timely manner with the effective involvement of the managing authorities and the boards of directors of the banks concerned.
In the current reality, the banking division letter said, it is important to maintain social distance to prevent coronavirus infection.
So if mobile app-based banking service is launched, the customers will not have to visit the banks in person, the letter added.
