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Bangladesh Bank set to approve digital bank policy on June 14
Bangladesh Bank (BB) completed the preparations of the ‘Digital Bank’ policy for approval at its board meeting on June 14 to provide banking facilities to people of all levels.
The work of formulating the outline and policies of the digital bank operation in the country has been completed. The digital bank will be approved at the next board meeting of the central bank set on June 14.
This bank will operate without branches across the country. A minimum capital of Tk 150 crore is required to get a license for this technology-based modern bank, the BB sources said.
Read: MoU signed to promote Bangladesh's cross-border trade capacity in agro-processed food products
Finance Minister AHM Mustafa Kamal has mentioned setting up a digital bank to expand and accelerate the country's economic inclusion efforts in the proposed budget for the fiscal year 2023–24.
Bangladesh Bank is working towards this goal. The work of formulating the policy of the digital bank has been completed. Digital Bank will be operated according to these policies and the Bank Company Act.
Only if the digital bank is approved will the bank's journey toward Smart Bangladesh take another step forward.
At present, the minimum capital required to obtain a conventional bank license is Tk 500 crore. Digital Bank's deposit collection, loan application, and loan approval will be online based and it will be easy to identify fake borrowers and genuine borrowers.
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Wishing to be anonymous, an official of Bangladesh Bank, told UNB that the outline and policies of the digital bank have been prepared. It will be sent to the board meeting on June 14.
After approval at the board meeting, further activities will start.
Tipu Munshi calls on H&M Group to continue support to garment sector for sustainable development
Commerce Minister Tipu Munshi MP along with BGMEA President Faruque Hassan and Vice President Miran Ali held a meeting with H&M Group CEO Helena Helmersson in Sweden to discuss the issues of mutual interests.
Ziaur Rahman, H&M Group Country Manager for Bangladesh, Karin Lind, Global Head of Production at H&M Group, Pernilla Halldin, Head of Public Affairs at H&M Group, and Gagan Bansal, Head of Material Innovation and Strategy at H&M Group, were also present at the meeting held at the headquarters of H&M in Sweden on June 8.
Read more: Dhaka, New Delhi review progress of Katihar-Parbatipur-Baranagar 765 KV transmission line
Their discussions focused on the challenges and opportunities of the garment industry of Bangladesh in the coming days and how the partnership could be strengthened further to drive the development of the sector in a more sustainable manner.
The issue of joint efforts in accelerating the industry’s progress towards circular fashion and carbon neutrality got due importance in the meeting.
Read more: Tipu Munshi hopes PTA with Indonesia to be signed 'soon'
During the meeting, they also talked about stepping up collaboration to support the industry in pursuing its Sustainable Strategic Vision 2030.
In line with the vision, the RMG industry of Bangladesh aims to achieve its sustainability goals while keeping it economically viable through innovation, diversification, technological upgradation, and productivity enhancement.
Read more: Agriculture to be mechanised through multipurpose cooperatives: PM Hasina
Expressing thanks for their continued support to Bangladesh, Commerce Minister Tipu Munshi requested H&M Group to remain by the side of the industry and its workers in their journey towards further development in the coming days.
Establishing Digital Bank paramount to build smart Bangladesh: Nagad MD
Establishing a digital bank is necessary to include the entire population financially as Bangladesh is setting its direction to build a smart country, Nagad founder and Managing Director Tanvir A Mashuk has said.
“We have mobile money carriers in the country but it has limitations to offer reasonable and customers required services and banks also has its own limitations to spread its services because of the cost of doing business. So Digital Bank is the only solution,” said Mishuk during an interview with UNB.
Read more: Nagad MD proposes cashless transactions to save billions and build a smart Bangladesh
Bangladesh is all set to enter the era of a Digital Bank with necessary policy formulation nearing completion.
With a view to widening and accelerating financial inclusion, the government feels urgency of launching digital banks, which will also create jobs for young IT workers, as reflected in the FY24 budget speech of Finance Minister AHM Mustafa Kamal.
The Bangladesh Bank has also finalised regulatory guidelines to be placed in the bank’s next board meeting next week.
The Nagad founder said, “With a fast growth in smartphone penetration and soaring internet users, a large number of people are already enjoying many banking services, mainly offered by MFS, on their phones.”
Read more: Nagad welcomes govt’s move to increase safety net allocation
Now, they now seek a complete financial solution on a single platform. But mobile money providers have limitations, they cannot perform like a bank does, Mishuk added.
Nagad managing director also said, “By leveraging state-of-the-art technologies and innovative solutions, Nagad has pioneered a novel approach to banking, which will enable millions of individuals and businesses to access secure and convenient financial services.”
“We believe that with a strong foundation and a vision for the future, Nagad is well-positioned to shape the future of digital banking in Bangladesh and contribute to the country’s overall development,” he added.
Nagad, a disruptive mobile financial service provider of Bangladesh also has partnership with Bangladesh Postal Department, became the first to introduce the country and its people with Digital Bank, also known as Neobank or virtual bank.
Read more: Nagad founder wins Kotler Iconic Achiever of the Year Award-2023
Such a bank will provide all banking services through websites and mobile phone apps, according to Nagad.
There is no denying that the digital delivery of financial services by MFS operators reflects that they have come a long way when it comes to going paperless and cashless and bringing an end to in-person bank visits.
Financial industry experts say it is now high time for an MFS operator like Nagad to function as a digital bank. In this way, customers will get all of their desired financial services on a single platform.
It is a commendable move that the government is going to launch digital banks in Bangladesh in the next fiscal year, they also say, adding that this will change the entire banking experience for people by making available services at their fingertips.
Read more: Nagad to disburse Mohila Sangstha’s training allowance among 7,200 women
A traditional bank operates through physical branches and locations, but a digital bank with little or no physical presence runs solely through their digital platforms, enabling customers to perform various financial transactions using digital devices such as smartphones, tablets, or computers.
In digital banking, customers can perform many of the same services that they would in a physical branch, such as opening accounts, checking account balances, transferring money between accounts, paying bills, applying for loans, and more.
Among many additional features that digital banking services offer, the option of mobile check deposits is a game-changer. A mobile check deposit allows customers to take a picture of the front and back of a check using a smartphone and deposit it through a bank’s mobile app, without requiring bringing the check to the bank. Thus, customers can save time.
Digital banking has emerged as a disruptive force in the global banking industry, offering customers more convenient, affordable, and accessible financial services through online and mobile channels. In neighbouring countries like India, digital banks are very popular among consumers as they get all services easily.
Read more: Nagad introduces add-money thru’ Agrani Bank’s smart banking app
Experts believe that in Bangladesh too, digital banking will make the lives of customers easier by allowing them access to banking services from anywhere at any time. In terms of costs, it is easily understandable that digital banks have lower operating expenses than traditional ones as they do not have physical infrastructure, rather rely more heavily on technology to provide customers with a plethora of services. So, this translates into lower charges and interest rates for customers.
Another important feature that makes digital banking popular worldwide is speed. Digital banks process transactions faster than traditional banks do because of the speed and efficiency of their digital platforms.
MoU signed to promote Bangladesh's cross-border trade capacity in agro-processed food products
The Bangladesh Standards and Testing Institution (BSTI) has officially partnered with the Bangladesh Trade Facilitation Project, funded by the United States Department of Agriculture.
On Wednesday, the organiations signed a Memorandum of Understanding (MoU) at BSTI office to improve Bangladesh's international standing and strengthen its institutional capacity and procedures for cross-border trade in agricultural and food products.
The collaborative efforts seek to expand the variety, quantity, and value of agricultural exports while simultaneously reducing import time for agro-products.
During the MoU signing event, Md. Abdus Sattar, Director General, BSTI recognized the vibrant support of USDA BTF to transform BSTI into a smart organization in line with the government vision.
Read: BSTI adds 43 new products under mandatory quality certificate
He emphasized that activities planned under the MoU will make BSTI equipped to contribute to the economic journey of Bangladesh, according to a media release.
This MoU will be a milestone and will set the stage for a promising future of enhanced trade facilitation in the agricultural sector, benefiting both local producers and international trading partners, he said.
Michael J Parr, Chief of Party of the USDA program, expressed his hope that this MoU will smoothen the process of implementing four pillars of trade facilitation that is transparency, harmonization, simplification and standardization and will significantly contribute to the economy of Bangladesh.
Read: BSTI certification now mandatory for petroleum jelly, water heater, 8 more products
Fuad M Khalid Hossen, Deputy Chief of Party, BTF Project in his keynote presentation mentioned that this partnership will focus on enhancing various aspects of quality assurance and regulatory practices which includes strengthening engagement in Codex, developing risk-based compliance management, improving laboratories and testing capacities, standardizing the halal certification process, developing capacity for mutual recognition agreements (MRA), activating the Technical Barriers to Trade (TBT) Enquiry Point, and promoting initiatives by BSTI.
Read more: Govt working to strengthen BSTI global standard: Minister
HSBC-KGDCL ink deal for online collection solution
The Hongkong and Shanghai Banking Corporation Limited and Karnaphuli Gas Distribution Company Limited (KGDCL) in Chattogram have recently signed an agreement to offer Bill Collection Solution for KGDCL’s consumers.
The signing ceremony was held at the KGDCL’s head office in Chattogram. This proposition provides more efficient and cost-effective collection modality for KGDCL and HSBC’s customers.
HSBC is the first foreign bank to integrate with KGDCL in Bangladesh with innovative API (Application Programming Interface) based branch collection proposition.
The proposition model will aid KGDCL to validate their consumer collections against their record through API and to reconcile efficiently. This will facilitate KGDCL consumers to avail best-in-class services from HSBC Branches while paying KGDCL bills.
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The KGDCL, which is responsible for distributing gas in Chattogram and the hill tracts, is a concern of state-owned Petrobangla. The solution will support KGDCL with improved visibility and control over their industrial and commercial Customers’ gas bills.
Engr. MD. Rafiqul Islam, managing director of KGDCL, said, “We are extremely pleased to partner with HSBC Bangladesh as the first foreign bank with the vision to shift towards digitalised collection platform and sustainable nation”.
He said the KGDCL will look forward to strengthen the relationship with the leading international bank and welcomes new innovations for countries development goal for smart Bangladesh.
Read: Indian govt denies knowledge of Bangladesh seeking revised deal with Adani
Gerard Haughey, country head of wholesale banking at HSBC Bangladesh, said, “HSBC is constantly developing innovative cash management solutions through its secured digital banking platforms for its valued customers”.
He said their API based receivables solution provides seamless connectivity between HSBC’s and KGDCL’s systems and enables increased business agility across the broader ecosystem.
“HSBC is very keen to collaborate with KGDCL to increase the capacity of the gas supply network which will help accelerate industrialization in Bangladesh,” he said.
Gerard and Engr Rafiqul Islam inked the deal on behalf of their respective organisations.
Also, Devesh Mathur, chief operating officer of the foreign bank and other senior officials from KGDCL and HSBC attended the signing ceremony.
Read more: $4.5 billion loan: IMF reaches preliminary agreement with Bangladesh
DSE urges tax exemption on earned interest in bond market
The Dhaka Stock Exchange (DSE) on Tuesday urged the government to consider its 6-point proposal on the budget for the fiscal year 2023-24, to encourage investment.
DSE Board of Directors Chairman, Professor Hafiz Hasan Babu made the call from a 'post-budget press conference' at a hotel in the capital on Tuesday.
The proposals are tax-exemption for earned interest on bonds, to reduce the tax gap between listed and non-listed companies to 10 percent, reduce VAT from 15 percent to 10 percent for companies in the capital market, reduce the tax gap to 10 percent for stock exchange SME companies, and reduce tax at source on broker houses’ transactions.
Also Read: DSE seeks inclusion of four points to facilitate investors
In a written speech at the press conference, DSE Chairman said that currently, the size of the corporate bond market is very small which creates limitations in the capital market as well as in the financial market.
Also Read: DSE market capitalisation increased by Tk4.5 lakh crore in 2022
“A well-functioning bond market can help the economy in several ways. Exemption of tax on interest in all types of bonds would encourage creating a strong bond market," he said.
Grameenphone plans to reduce 50% carbon emissions by 2030
Grameenphone has announced to reduce 50 percent carbon emissions by the year 2030.Grameenphone has reaffirms its commitment to environmental sustainability and finding green energy solutions to combat climate change. It brought together public and private experts and diplomatic community to discuss the "Green Energy Ecosystem in Bangladesh" at the GP House on Monday, according to a press release.
Also read: Grameenphone Academy Night celebrates future-ready skilled generation
Grameenphone is devoted to continuous deployment of enhanced sustainable solutions, protecting the environment and promoting an energy-efficient and eco-friendly business approach. The organization has set a target to reduce 50% carbon emissions (CO₂) by 2030, taking 2019 emissions as the baseline, it said.
The company has so far converted around 1200 towers into solar energy powered sites in remote places ensuring connectivity in the most unconnected regions, it added.
Also read: Grameenphone reports revenues of Tk 37.3 bn for Q1 of 2023
“According to Germanwatch’s 2021 Global Climate Risk Index (CRI), we are vulnerable to both disasters and climate change and Bangladesh is ranked the seventh extreme disaster risk-prone country in the world,” said Yasir Azman, CEO of Grameenphone.
“Deploying solar powered towers is a steppingstone towards co-creating a greener future. It will significantly reduce carbon dioxide emissions from our operations and help overcome the electricity supply problem,” he said.
“As an early adopter of green initiatives in Bangladesh, we are committed to reducing our carbon footprint with a comprehensive set of initiatives. I believe if private sector organizations are given opportunity to procure more renewable energy utilizing the gridlines, it will encourage more green energy investments into the country and enable us to achieve our national ambition,” he added.
Also read:Grameenphone users can now pay for 32 government services
Espen Rikter-Svendsen, ambassador of the Royal Norwegian Embassy in Dhaka; Md Shahriar Ahmed Chowdhury, director of the Center for Energy Research, UIU; Nazneen Ahmed, country economist at UNDP spoke at the programme, among others.
Tea industry must provide its workers with welfare: Commerce Minister
Commerce Minister Tipu Munshi has urgedplm all concerned, including tea garden owners, to build a worker-friendly tea industry.
He made the call at a press briefing organised byq Bangladesh Tea Board at the Tea Resort and Museum conference room at Sreemangal in Moulvibazar on Saturday afternoon.
Also read: Tea production increasing by 5 percent each year: Commerce Minister
This year, the main event of The National Tea Day has been organized at Sreemangal in Moulvibazar, known as the capital of tea, with the direct stakeholders including tea garden owners and workers associated with the tea industry, said the minister.
The commerce minister then announced the names of the awardees in eight categories of the “National Tea Awards” launched for the first time in the country.
Here is the full list of the winners:
1. Highest producing tea garden per acre: Rented tea garden. 2. Highest quality tea producing garden- Madhupur tea garden. 3. Best tea exporter- Abul Khair Consumer Products Ltd. 4. Best Small Tea Grower - Md Anwar Sadat Samrat (Panchagarh). 5. Best tea garden for workers welfare - Jerin Tea Garden. 6. Best organization/company - Kazi and Kazi Tea Estate Limited on the basis of marketing of diverse tea products. 7. Best tea company - Green Field Tea Industries Limited on the basis of beautiful and quality tea wrapper. 8. Best tea leaf chooser (tea worker) - Uplakhi Tripura, Neptune Tea Garden.
The awards will be distributed later.
Also read: Avoid excessive buying to keep markets stable: Commerce Minister
During the program, the minister while replying to a question from a journalist, said necessary measures are being taken for the extraction, production and marketing of tea leaves keeping the quality of tea intact Special surveillance is being maintained in this regard, he added.
About the reason for the increase in tea production, the commerce minister said tea production is more than before in the tea gardens in the country.
Besides, tea is being produced in the northern part of the country, especially Panchagarh, with almost19 percent of the total production. Due to this, tea production is increasing day by day in the country.
At present, there is a demand for 90-95 million kg of tea in the country. The commerce minister said demand can be met through tea produced in the country. The country is expected to produce more than 100 million kg of tea this year, he said.
Chairman of Bangladesh Tea Board Major General Md Ashraful Islam NDC, PSC, senior officials of the ministry and heads of various institutions under the Ministry of Commerce were present on the occasion.
Nagad welcomes govt’s move to increase safety net allocation
Nagad has welcomed the government’s move to increase the social safety net allocation in the national budget for the fiscal year 2023-2024.“This timely move will give poor people some relief during this tough time. Digital disbursements of such funds are done promptly while ensuring transparency,” said Tanvir A Mishuk, founder and managing director of Nagad Limited, according to a press release.“From the beginning Nagad had been the first choice for the government in disbursing government allowances, education stipends and other cash aid as we ensured transparency by plugging all anomalies, " he added.Finance Minister AHM Mustafa Kamal has proposed a budgetary allocation of BDT 1,26,272 crore in the next fiscal year for the social security programmes, up by a little over 11 percent from the current fiscal year’s BDT 113,576 crore. In this way, the size of social security allocation will be 16.58 percent of total budget allocation and 2.52 percent of GDP.The finance minister has also proposed increasing beneficiaries by more than 8.5 lakh, which is a very timely move to give breathing space to the poor who are grappling with rising costs of daily necessities. He has also proposed that monthly allowances be raised by BDT 50 to BDT 200 in different categories of safety net allowances, read the budget documents.In 2021 and 2022, Nagad successfully disbursed 75 percent of all the social safety net allowances, such as old-age allowance, widow allowance, allowance for the underprivileged with special needs and students with special needs, Bede community development allowance and transgender community development allowance, the release added.Besides, Nagad also disburses 100 percent of primary education stipends, stipends under the Prime Minister’s educational assistance trust, tea garden workers’ living standard allowance, backward community development allowance, disabled allowance, and others, it also said.
Berger extends contract with Rupali Chowdhury, appoints new COO
Berger Paints Bangladesh Limited (BPBL), the market leader in the paints industry, has extended its contract with Rupali Chowdhury as the Managing Director for three more years owing to her exceptional and unwavering commitment to the company’s success.
The recommendation was made by the members of the board of directors.
Additionally, the company has also appointed Md. Mohsin Habib Chowdhury as the new Chief Operating Officer (COO).
From an executive to the first female Managing Director of a leading multinational company in Bangladesh in 2008, Rupali Chowdhury rose with unbending resolves and became an inspiration for many. She significantly contributed to BPBL and the entire industry with her illustrious accomplishments since 2008.
She was recently featured in TIME magazine.
Rupali Chowdhury joined BPBL in 1990 as a Planning Manager.
Since then, she worked with several departments under various supervisory capacities, including marketing, sales, supply chain, and systems. She reiterates BPBL’s commitment to collaborate with all the stakeholders to create a prosperous Bangladesh.