BB suspends photo norm for high-value MFS transactions
Bangladesh Bank yesterday suspended the photo norm for high-value Mobile Financial Service (MFS). The central bank has issued a circular yesterday in this regard.
According to a circular issued on August 2, a photo of an MFS user has to be stored, if he or she carries out a transaction (cash in or out) of Tk 5,000 or more.
At the same time, BB has lifted the six-month time limit for customers re-registration, but the circular has also asked for measure to keep the process of registration and re-registration ongoing. Bangladesh Telecommuni-cation Regulatory Commi-ssion (BTRC) has issued same type directive for mobile phone operators. The re-registration of mobile phone operators is going on, informed a BTRC source.
The BB circular on Mobile Financial Service signed by K M Abdul Wadud, general manager, payment system department of Bangladesh, was sent to all MFS provider yesterday.
The circular issued on August 2 will be very tough to implement, said sources of different banks. But, they have supported the idea of registration and re-registration of mobile SIM card.
Abul Kashem Md Shirin, DMD of Dutch Bangla Bank, the second largest MFS provider in the country, told The Independent that there should be a law to check crimes, but it is very difficult to reduce irregularities only by taking users photos, or giving new directives.
It can be threat to a banks security system if the photograph of a MFS user has to be stored, while he or she is doing a transaction of Tk 5,000 or more, he said.
Dutch Bangla Bank has 120,000 agents and each agent has to be provided with a camera or a smart phone and internet connection, if the circular is set to be implemented. Not only that, he should be given access to the banking system. With access being given to so many agents, the banks system might become vulnerable, Shirin added. It is very tough to implement this type of a directive, he said.
If this is implemented, the number of transactions will rise, but the amount will be lower than Tk 5,000. To control crime, law is more effective. The number of irregularities found in MFS transactions is very low. Its a bit illogical to change the entire system, the Dutch Bangla Bank DMD said.
You may find that only 20 in every 1 lakh MFS transactions are illegal, he said. He pondered how reasonable it would be to control the entire system and suggested that a new law would be a good option, to identify and punish perpetrators.
Shirin welcomed yesterdays decision of suspending the requirement of saving photographs of high-value MFS users.
According to Bangladesh Bank, the total number of MFS agents was 538,170, before June. With this number, the monthly approximate transactions total about Tk 13,000 crore.
On the other hand, according to instructions mentioned in the new circular issued yesterday, all subscribers will have to re-register their SIM-cards, in accordance with Know-Your-Customer (KYC) norms.
Agents have to submit reports on all the measures taken in this regard, to the central bank, by September 30.
Also, a report has to be submitted by 15th of every month on previous months activity.
