Agent Banking Remittances Reach Tk 1.73 Trillion In December2 min read
The distribution of inward remittances through agent banking witnessed a significant rise, reaching Tk 1.73 trillion by the end of December 2024. This marks a 21.16 percent increase compared to the previous year, when the figure stood at Tk 1.43 trillion. The upward trend continued throughout the year, with remittances reaching Tk 1.65 trillion in September 2024.
During the September quarter, remittances collected and disbursed by agents grew by 4.67 percent compared to the previous quarter. The increase in inward remittances is attributed to the government’s 2.5 percent cash incentive on remittance inflows, encouraging more people to use legal banking channels. Additionally, financial literacy campaigns promoting legal remittance transfers have played a role in boosting the inflow.
Agent banking services have gained popularity due to their accessibility, offering doorstep banking solutions in a short time. The majority of remittances disbursed through agent banking accounts were received in rural areas, accounting for 90.12 percent of the total in December 2024. Urban areas, on the other hand, received only about 10 percent, amounting to Tk 77.31 billion.
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A few leading banks dominated the remittance distribution through agent banking, holding a combined share of 95.75 percent. The top bank accounted for over half of the total distribution, followed by others with significant contributions. The increasing preference for agent banking in rural areas highlights the potential to bring unbanked populations under formal banking services.
The rising remittance inflow reflects the impact of government initiatives aimed at streamlining legal remittance channels for non-resident Bangladeshis. Agent banking was introduced in 2013 to extend financial services to underserved populations in remote areas. Through agent banking, customers can access a range of services, including deposits, loans, remittance transfers, bill payments, and government social safety-net benefits.
This banking model has emerged as a cost-effective and convenient solution, ensuring financial inclusion for those previously beyond the reach of traditional banks. The operations of agent banking follow regulatory guidelines that cover agent approval processes, permissible activities, and financial security measures, ensuring compliance with anti-money laundering and counter-terrorism financing standards.
With its growing acceptance, agent banking continues to play a crucial role in expanding financial services and strengthening remittance inflows into the country.
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