Chapter-3 Mobile Banking in Bangladesh

Chapter-3 Mobile Banking in

Bangladesh
History of Mobile Banking in Bangladesh
Our life is becoming more frequent day by day in touch of Technology. Mobile
banking is one of the tremendous touch of technology in banking sector. Though this
technology has been populated in developed country earlier, in Bangladesh it was a
dream for this opportunity in banking. But through the progress of Digital Bangladesh
the dream has come true. The new era of banking in Bangladesh 'Mobile Banking'
was inaugurated at 31st March 2011. Bangladesh Bank Governor Atiur Rahman had
inaugurated it through deposited 2000Tk in his account Ten leading bank had started
this service to the customer. Among them Duch Bangla Bank Ltd. serves the wide
and own structured network at first DBBL serves this with the help of two mobile
operator company named 'Citycell' and 'Banglalink'.

Dutch-Bangla Bank Limited (DBBL)

Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile
banking service expanding the banking service from cities to remote areas.
Bangladesh Bank Governor Atiur Rahman inaugurated the service by depositing 1k
2,000 and withdrawing 1k 1,500 through Banglalink and Citycell mobile networks in
Motijheel area. Bangladesh Bank has already allowed 10 banks to initiate mobile
banking. Of them DBBL kicked off first. Mobile banking is an alternative to the
traditional banking through which banking service can be reached at the doorsteps of
the deprived section of the society, the central bank governor said at an inaugural
press briefing at Hotel Purbani. Atiur Rahman said through mobile banking various
banking services including depositing and withdrawing money, payment of utility
bills.andreaching.remittance.to.the.recipient.would.be.possible..By.going.to.the.DBB
L.approved.the.Citycell.and,..the. Banglalink agents throughout the country the
subscribers on showing necessary papers and payment of a fee of Tk 10 can open an
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Chapter-3 Mobile Banking in Bangladesh

account. To avail of the banking service a subscriber will require owning a cell phone
of

any

provider

and

he

will

be

given

four-digit

PIN.

By.using.the.PIN.he.can.operate.all.types.of.banking.services.including.depositing.an
d>withdrawing money maintaining security and secrecy of his account. The customer
will hand over cash to the agent and the agent will initiate the transaction from his
mobile phone, the agent will help the account holder to do the banking using his PiN.
A customer can deposit or withdraw money five times a day and he can deposit or
draw 1k 5,000 per day. One percent of the transaction account or 1k 5, whichever is
higher, will be taken as cash-in-charges. In case of cash out the charge will be 2
percent of the transaction amount or 1k 10. However, the registration fee, salary and
remittance disbursement services will be provided free of cost.
Why DBBL chose Mobile Banking

Rapid expansion of Mobile Phone

Nationwide coverage.
Enhanced Mobile Phone Services
Failing cost of Technology
Increasing competition in Commercial Banking
Ability to offer low cost banking services
Affordable and secure
High level of Mobile phone literacy among client
Existing of Mobile payment platform which is save and secure & recognized
by Bangladesh Ban

Where DBBL M-Banking is available?

Customer can register at any authorized agent point of DBBL at present these are
the retailers of City cell & Banglalink throughout the country who can display DBBL
Agent Certificate and DBBL Mobile Banking Banner. Banking is there. Around
152 Banglalink and Citycel agent around the country and all the DBBL branch is the
Mobile Banking place. A Mobile account holder can deposit money from DBBL
permitted Banglalink and City cell agent and any branch of DBBL, They also can
withdrew money from DBBL Banglalink and City cell agent and Branch. They also
cash out from ATM.

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Chapter-3 Mobile Banking in Bangladesh

Benefits of DBBL Mobile Banking
By providing electronic access to money, it is possible to ultimately alleviate poverty,
because of the following reasons.

Real time on-line banking.

Available anytime, anywhere throughout the country.
It is convenient, affordable and secure.
It is much more effective in developing savings habits.
It will make access to banking and advanced payment transactions at
affordable cost.

What does DBBL Mobile banking offer?

Customer Registration
Cash-in (cash deposit)
Cash-out (cash withdrawal)
Merchant Payment
Utility Payment
Salary Disbursement
Foreign Remittance
Air-time Top-up
Fund Transfer

How does it work?

Customer fills up the KYC Form and submits to agent along with his
photograph & National ID (NID).
Agent checks the Application Form, photograph & NID.
Agent goes to Customer Registration Menu in his/her mobile and inserts
customers mobile number.
Customer receives a call and in reply, s/he gives a 4-digit PIN number of
his/her choice (please remember your PIN).

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Chapter-3 Mobile Banking in Bangladesh

A Mobile Account is created in the DBBL system which is his/her mobile
number + one digit.
Customer receives an SMS which contains his/her Mobile Account number
(please remember your check digit).
According to the Law and Practice the Banker Customer relation arises only from
contract

between the two. And opening of Mobile Account is the contract that

establishes the relationship between a banker and a customer. So this section pays
very important role in attracting customer and therefore be handled with extra care.

Necessity
A person who wants to open an account he/she should have some
documents to open an account, these are1. 2 copies PP size photo of Applicant
2. Photocopy of National ID card
3. 100 take as account opening charge.

Why PIN is required?

PIN.is.required.to.be

inputted

during

cash

withdrawal

from

an

Agent.or>DBBL.ATM.PIN ensures security of your money and protects fraudulent

transaction.
Why PIN is strictly confidential?
PIN is the key for transaction of Mobile Banking. Only correct match of PIN &
Mobile Number can access the Mobile Account. PIN is needed to verify the A/C
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owner by the system.If a PIN is disclosed, respective account is at risk; therefore, PIN
should be handled very carefully.
What type of Mobile set is required?
Any type of mobile set can be used for DBBL mobile banking.
How much initial deposit is required?
Customers can open a DBBL Mobile Account with an initial deposit of Taka 100/(taka hounded) only.
Where to cash-in (cash deposit)?
Customer can cash-in (deposit) at any DBBL Branch, DBBL nominated- own agent,
UISC, Banglalink, Citycell & Airtel retail points and Mobicash marked outlets of
Grameen Phone.
Where to cash-out (cash withdrawal)?
Customer can cash-out (withdraw) at any authorized agent of DBBL , DBBL ATMs
and DBBL Branch.

How does it work?

Customer hands over cash to the Agent
Agent initiates the transaction from his/her mobile
Agent gets prompt menu and in reply agent enters customers mobile

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account number
Agent enters his/her PIN
System credits customers account for the same amount
Agent issues a receipt to the customer
System sends an SMS to the customers mobile

Chapter-3 Mobile Banking in Bangladesh

For security reason, customer needs to check the sending number of
SMS and the amount.
SMS will be sent from 16216

How is DBBL Mobile Banking secured?

How
will you withdraw money from Agent Point?
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Chapter-3 Mobile Banking in Bangladesh

Customer.asks.the.agent.for.withdrawal.of.an.amount.from.his.Mobile.
account
Agent initiates the transaction from his/her mobile
DBBL.system.sends.USSD.flash.menu.to.the.customer's.mobile"Welco

me.to Dutch Bangla Bank.

You are going to withdraw Tk.XXX from your account.
If you want to continue enter your 4 digit pin or if not cancel the call.
Customer enters his/her PIN
System sends an SMS to the customer's mobile
Agent hands over money to the customer

How to withdraw money from ATM?

Customer press the Mobile Banking button at ATM

Customer enters his/her 12 digit account number at ATM
Customer enters his/her PIN number & amount at ATM.
Customer receive a USSD Flash message or IVR call in his/her mobile from

DBBL
system where customer will be requested to enter his/her PIN number.
Customer enters his/her PIN number through his/her mobile
ATM will dispense the money to the customer
What is Salary/Allowance Disbursement?
It.is.a.process.by.which.Corporate.Office.can.disburse.the.salary.of.their.employees.a
nd.Government can disburse different allowances like elderly allowance, freedom
fighter allowance etc. to the people within a few moment in a hassle free way.
How does it work?
Corporate.office/Government.will.send.the.list.of.mobile.account.numbers.
(including check digit) and monthly salary/allowance to DBBL
DBBL will credit all the individual accounts by debiting corporate account
centrally by a batch process system
The employee/beneficiary. will get an SMS regarding the transaction
The employee/beneficiary. will receive an sms confirmation
The.employee/beneficiary.can.go.to.any.agent.or.DBBL,ATM.or.DBBL.branc
h.to withdraw money
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Chapter-3 Mobile Banking in Bangladesh

What is person to person (P2P) transfer?

The money transfer from one mobile account to another mobile account is called P2P
transfer. At present, Citycell, Banglalink, Airtel, Robi & Grameen Phone mobile
account user can transfer maximum Tk.10,000/- (Ten thousand) per day and
Tk.25,000/- (Twenty five thousand).Per month from own account to any mobile
account any time.

2.12 BRAC Bank Limited

BRAC Bank Limited is set to introduce mobile banking secondly. BRAC Bank
launched its operation 10 years back with the objective of bringing unbanked people
under formal banking coverage. The business model of the bank is to mobilise
deposits from urban areas and disburse it to rural areas. A top official said the service
will enable millions of banked and unbanked people to deposit, withdraw and transfer
money through mobile phones. bKash Limited, a subsidiary of BRAC Bank, started
as a joint venture between BRAC Bank Limited, Bangladesh and Money in Motion
LLC, USA, and in April 2013 International Finance Corporation (IFC), a member of
the World Bank Group, also became an equity partner of the company. The ultimate
objective of bKash is to ensure access to a broader range of financial services for the
people of Bangladesh. It has a special focus to serve the low income masses of the
country to achieve broader financial inclusion by providing services that are
convenient, affordable and reliable.
More than 70% of the population of Bangladesh lives in rural areas where access to
formal financial services is difficult. Yet these are the people who are in most need of
such services, either for receiving funds from loved ones in distant locations, or to
access financial tools to improve their economic condition. Less than 15% of
Bangladeshis are connected to the formal banking system whereas over 68% have
mobile phones. These phones are not merely devices for talking, but can be used for
more useful and sophisticated processing tasks. bKash was conceived primarily to
utilize these mobile devices and the omnipresent telecom networks to extend financial
services in a secure manner to the under-served remote population of Bangladesh.
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Chapter-3 Mobile Banking in Bangladesh

Mission
By providing financial services that are convenient, affordable and reliable, bKash
aims to widen the net of financial inclusion. bKash wants to provide a solution for
Mobile Financial Services, built on a highly scalable Mobile Money platform,
allowing the people of Bangladesh to safely send and receive money via mobile
devices.
Why BRAC Bank Limited chose Mobile Banking
bringing unbanked people under formal banking coverage
Affordable and safe
Customers can get financial services through phones, even by the handset that
costs the lowes
Bring the rural people under coverage

Benefits of BRAC(bkash) Mobile Banking

Fast
bKash is dedicated to widening the net of financial inclusion among the people of
Bangladesh by facilitating money transfer through mobile phones. bKash provides
Mobile Financial Services allowing customers to send, receive, and pay money from
their mobile phones. Send and receive money, or make payments the fastest way there
is! bKash enables you to send money to anyone, using an advanced technology
available on your own mobile phone. The recipient will receive money instantly, no
matter where s/he is. Payments through bKash also make your life easier as you do
not have to go back home or anywhere else to get money when you need to buy
something and have run out of cash. Even if you don't have the required amount in
your bKash Account, someone else can easily send you the amount in times of need.
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Chapter-3 Mobile Banking in Bangladesh

Affordable
Send and receive money with minimal effort and cost. bKash provides the highest
benefits to its customers at an affordable cost, enabling everyone to access the formal
financial system of the economy.

Secure
Money in your bKash Account won't be lost even if you lose your mobile phone.
Every transaction is protected by your very own PIN and what's more, state-of-the-art
technology provided by VISA ensures that your money is always safe and secure in
our system.
Your PIN is your Personal Identification Number that you create when you register
for bKash. Each transaction you make needs to be authorized by entering your PIN.
To ensure 100% safety of your own account, do not share your PIN with anyone.

Convenient
bKash users enjoy increased convenience of accessing their finances from their own
mobile phones anytime, anywhere. bKash gives you the flexibility to perform
transactions 24 hours a day, 7 days a week, regardless of time and place. "No queues
no waiting"; the most convenient way of transferring money.
Be it on a bus, train, launch, or anywhere else; as long as you have a bKash Account
on your mobile phone, you can access your account and send or receive money in
seconds.

Nationwide
bKash is the easiest and safest way to send or receive money instantly on your mobile,
nationwide. No matter where you are in Bangladesh, bKash is always with you.
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Chapter-3 Mobile Banking in Bangladesh

Our extensive distribution network with more than 70,000 Agents covering each
district and Thana along with around 300 BRAC Bank ATMs provides you with the
nationwide reach and capacity that you need to avail bKash services at a close
proximity.

Open an Account at a bKash Agent

Opening a bKash Account is an easy one time process. Once you have an Account,
you can use all bKash services. Currently, Account opening is available in Robi,
Grameenphone, Banglalink and Airtel connections. Soon, subscribers from other
operators will also be able to use bKash.
To open a bKash Account
01. Go.to.any.of.your.nearby.bKash.agent.along.with

a.Your.mobile.phone

.......b..A.copy.of.your.Photo.ID.(National.ID/Passport/Driving.License)
c. 2 copies of Passport size photographs
02. Fill out the Account Opening Form and put your thumb print and signature
properly. Please make sure that you have taken your copy (customer copy) from
Agent and preserve it for future reference. After opening an Account, you need to
activate your bKash Mobile Menu. Follow the steps below to activate your mobile
menu01. Go to bKash Mobile Menu by dialing *247#
02. Choose Activate Mobile Menu
03. Enter a new PIN for your bKash Account
04. Enter the PIN again to confirm

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Done! You will receive a confirmation message from bKash. Please keep your PIN
secret all the times.

Product and Service

Cash In
To deposit money into your bKash Account
1. Go to any bKash Agent
02. Let the Agent know the amount you want to Cash In
03. Write down your bKash Account Number and the Cash In amount in the
Agent Register
04. Pay the amount of money you want to Cash In
05. In exchange, the Agent will send balance to your bKash Account. Cash In
done!

Cash out
I.

From Agent

If you have sufficient balance in your bKash Account, you can withdraw cash anytime
from any bKash Agent. To Cash Out from your bKash Account
01. Go to any bKash Agent
02. Let the Agent know the amount you want to Cash Out
03. Write down your bKash Account Number and the amount in the Agent
Register
04. Dial *247# on your mobile for the bKash Mobile Menu
05. Choose Cash Out
06. Choose From Agent
07. Enter Agents bKash Account Number (ask the Agent)

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Chapter-3 Mobile Banking in Bangladesh

08. Enter the amount
09. Enter your bKash Mobile Menu PIN
II.

From ATM

You can withdraw cash anytime from any bKash enabled BRAC Bank ATM.
III.

ATM Cash Out Service Activation - To avail the bKash ATM Cash Out
service, you need to activate this feature from your bKash Mobile Menu. This
is a one-time action. To activate the ATM Cash Out service

01. Go to your bKash Mobile Menu by dialing *247#

02. Go to My bKash
03. Choose Activate ATM
04. Enter a new 5 digit PIN. This PIN will be your bKash ATM Cash Out PIN and
it is better to make it different from your Mobile Menu PIN
05. Enter the PIN again to confirm

Send Money
Send Money allows you to transfer money from your bKash Account to another
bKash Account. To send money
01. Go to your bKash Mobile Menu by dialing *247#
02. Choose Send Money
03. Enter the bKash Account Number you want to send money to
04. Enter the amount you want to send
05. Enter a reference about the transaction. (Do not use more than one word, avoid
space or special characters)
06. Now enter your bKash Mobile Menu PIN to confirm the transaction

Payment
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You can make payments from your bKash Account to any Merchant who accepts
bKash Payment. For example, if you want to pay after shopping
1.

Go to your bKash Mobile Menu by dialing *247#

02. Choose Payment

03. Enter the Merchant bKash Account Number you want to pay to
04. Enter the amount you want to pay
05. Enter a reference* against your payment (you can mention the purpose of
the transaction in one word. e.g. Bill)
06. Enter the Counter Number* (the salesperson at the counter will tell you the
number)
07. Now enter your bKash Mobile Menu PIN to confirm

Transaction Type

Per Transaction Amounts

Maximum Transaction
Amounts

International
Remittance

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Minimum

Maximum

Per Day

Per Month

BDT 50

BDT

BDT

BDT

150,000

150,000

150,000