Agent banking transactions expanded 15% in August compared to the previous month of this year, thanks to comparatively better economic activities with the improvement of the Covid situation.
According to the latest report by the Bangladesh Bank, the transactions rose by around Tk5,000 crore to Tk37,513 crore in one month.
In August, the transactions stood at Tk29,016 crore in rural areas and Tk8,496 crore in urban areas.
The transactions were Tk25,340 crore in rural areas and Tk7,183 in urban areas in July.
Although remittance inflows through agent banking fell by Tk183 crore in August compared to the previous month, utility bill payments increased by Tk116 crore during this period.
Moreover, loan disbursements also grew by Tk262 crore in one month.
Agent banking, which started its journey more than eight years ago to provide banking services to the country's rural population, expanded 65% in fiscal 2020-2021 on the back of large remittance inflows and comparatively better economic activities in rural areas amid the pandemic.
According to the previous report, agent banking deposits also grew nearly 100%, loan disbursements 342.21%, and remittance inflows 155% between June 2020 and June 2021.
According to people concerned, the economic activities in rural areas were more active than in urban areas during the pandemic, resulting in a positive impact on agent banking.
At the same time, the savings of people outside the banking services have started coming to banks.
On 9 December 2013, the Bangladesh Bank issued a policy on conducting agent banking activities.
In January 2014, Bank Asia recruited its first agent as part of a pilot programme. Since then, other banks quickly joined agent banking.