The central Bangladesh Bank issued a circular allowing the ‘banking booth’ of scheduled banks to act as a sub-branch for reaching the banking service to doorstep of the rural people.
In this regard, the central bank issued the circular on Tuesday saying that the change was made with a view to make the banking services more communicative and clear to the customers.The word ‘booth’ confused many customers as they relate its functions with the function of ‘ATM booth’, hindering achievement of the targets behind the launch of such installations of the banks.
Hence, the central bank had renamed the ‘banking booth’ as ‘sub-branch’ of the banks to eliminate any confusion.
In December last year, the BB allowed banks to run ‘banking booths’ as part of business development centers.
Such booths are supposed to be operated within limited expenditure under the supervision of a nearby full-fledged branch of a bank.
Under the central bank’s instructions, fees, charges and commissions of banking services are supposed to be lesser at such sub-branches to its full branches.
IN addition, transactions at the sub-branches are carried out on a real time basis and customers receive instant SMS and printed slips against their transactions.To set up such booths, the banks are supposed to get approval from the BB based on the approval of the respective bank’s board. The central bank, however, preserves the rights to close any such booth without prior notice.
In 2012, the BB allowed banks to operate Small and Medium-Sized Enterprise (SME) and farm loan branches, collections and electronic booths as business development centers.