BB to decide on cell phone banking tomorrow

The central bank will hold a crucial meeting tomorrow to decide on a draft policy allowing mobile phone banking for the first time in Bangladesh, sources said.
Bankers, however, expressed concern sensing that mobile phone operators would get a huge edge over the traditional banking business, now in operation under the tough Banking Companies Act 1991.
“The draft policy has been finalised and it will be placed before the review meeting tomorrow for its approval,” a senior Bangladesh Bank (BB) official told The Daily Star yesterday. Governor Dr Salehuddin Ahmed will chair the meeting.
Now phone and online banking in Bangladesh merely offer services such as balance check and request for statement, cheque book etc. But the mobile banking allows fund transfer like a bank, thus paving the way for money transaction through cell phones across the country, according to the draft policy, Bangladesh Mobile Payments Guidelines 2008.
Once the policy is approved, mobile phone companies' outlets would be used as payment transaction centres. Banks will also be required to seek licence to offer the services.
The BB took the initiative following Grameenphone's application in December last year for a license to introduce mobile banking.
On receipt of GP's application, the BB held several meetings with the government agencies and departments concerned, undertook research and studies and an officials' team visited Thailand and the Philippines where the system exists.
Even neighbouring India and Pakistan have also adopted the system, BB sources said.
“Bank is a major stakeholder of the services. It already provides payments, especially remittances, through mobile phones,” said Muhammad A Rumee Ali, chairman of BRAC Bank and a former deputy governor of BB.
He said: “Right now we (bankers) do not know anything about the issue. We are concerned that banks will be removed from the business scenario by the mobile companies.”
Mahmud Sattar, president of Association of Banks, Bangladesh, however said finally he has been invited at the tomorrow's meeting.