In this era of scientific advancement, everything from an individual to an organisation has become dependent on technology. To harvest the utmost benefits of updated tools, all of the sectors are assuming a new shape with the aim of providing maximum facilities with minimum costs and hassles. Mass people also willingly accept such facilities in their daily life, even in trade and commerce, because of their multidimensional advantages. Keeping the facts in mind, Bangladesh Bank has directed all the banks and non-bank institutions in January 2020 to install an electronic Know Your Customer (e-KYC) system by December last. But, because of unknown reasons, overwhelming majority of the banks is yet to install the system.
Along with easing the account opening process for the backward section of the society, there are many other benefits of this system. The system is expected to leverage time and put both clients and service providers at ease in the economic transaction process. It can also help identify and verify customer identity promptly, maintain KYC profile in a digital form and determine customer risk grading through digital means. It is actually a system that can protect the financial sector from criminal activities, help establish good governance within the financial industry and enhance the growth of financial inclusion. Moreover, it has a significant role to play in preventing money laundering and terror financing.All the banks and non-bank institutions should have taken the guidelines seriously and implemented them urgently. But it did not happen. So, the central bank should now look into the matter and find out the reasons behind the reluctant attitudes of banks authorities. If there are any technical problems, the BB should help solve them. And if the reason is something else, they must handle it with a strong hand.
The banking sector of our country has been in a ramshackle condition for years and fighting to survive. The reason behind such conditions of banks is known to all. Fraudulent activities have increased alarmingly in recent years. Under such circumstances, there is no alternative but ensuring good governance and strengthening the security system in the banking sector. The authorities must leave no stone unturned to achieve these targets including installation of e-KYC.