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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
AmCham recommends focusing crisis management contingency approach prioritizing expenditures
The American Chamber of Commerce in Bangladesh (AmCham) held a “Post-Budget Panel Discussion” today at the Sheraton Hotel in Dhaka’s Banbani.
Planning Minister MA Mannan, attended the discussion as chief guest.
Also read: Policy support needed in budget for import-alternative industry in Bangladesh: FBCCI President tells ERF discussion
Dr M. Masrur Reaz, chairman of Policy Exchange of Bangladesh moderated the panel discussion where Dr Ahsan H Mansur, executive director of Policy Research Institute of Bangladesh (PRI) shared the keynote presentation, according to a press release.
Syed Ershad Ahmed, president of AmCham chaired the session.
Mannan shared the government overview of development, strategies and budget outlook Dr. Ahsan H. Mansur presented the keynote for the discussion. AmCham President Mr. Syed Ershad Ahmed shared the brief overview, and few keynotes of National Budget FY 2023-24, said the release.
Also read: Ensure energy, power supply to keep industrial production running: FBCCI
Since the government of Bangladesh aims to attain a 7.5% growth rate in FY24 containing the inflation during these difficult times heading for a new government to take over end of the year, AmChamBangladesh recommended focusing on crisis management contingency approach, prioritizing expenditures and policy continuity on key procedural matters in followings - carbon tax, income tax policy diversity, foreign exchange reserve, and alternatives to increase export revenue, energy diversity to offload existing supply chain, import duty and minimum tax, national board of revenue, digital economy, ict tax reform, banking sector stability, logistics infrastructure.
“The National Budget FY 2023–24 outlined strong and stable, versatile development strategies for our nation. It is crucial that the government, private sector, and concerned stakeholders find the best way to work together to build a strong and more focused future for Bangladesh,” it said.
Also read: Budget ambitious but business-friendly: DCCI
“We at AmCham Bangladesh with a diverse membership base and outlook focusing on global, national or business ecosystem at large, attempt to develop an approach that might help the business and regulatory leadership set the priorities on right strategies making rapid and inevitable remedies during these days ahead,” added the release.
Policy support needed in budget for import-alternative industry in Bangladesh: FBCCI President tells ERF discussion
Dhaka, June 7 (UNB)-FBCCI President Md Jasim Uddin on Wednesday urged the government for policy support in the budget to extend import-alternative industry in the country to curtail import pressure on foreign exchange.
He made the statement in a post-budget discussion organised by Economic Reporters’ Forum (ERF) jointly with RAPID and Asia Foundation, held at the ERF auditorium in Dhaka on Wednesday. Planning Minister MA Mannan was present as the chief guest in the function.
Also read: Ensure energy, power supply to keep industrial production running: FBCCI
He said Bangladesh manufactures many products, and industrial raw materials and exports them, which were imported earlier due to tax waivers and policy support. But in the proposed budget, there is no direction to reduce pressure on the dollar.
Massive import control initiatives will affect industrial production, he said adding that Bangladesh Bank’s move only to cut imports is not a solution for reducing stress on the dollar.
Also read: Budget ambitious but business-friendly: DCCI
Jasim blamed that banks are taking Tk114/115 per dollar from the traders and regretted that there is no institution to look into the matter.
He said in the proposed budget, the target of the 8th 5-year plan for increasing private investment and creating skilled manpower have no reflection.
Also read: NBR-private sector partnership crucial to achieve high revenue target: DCCI President
Having energy and power at an affordable cost is the most important element to increase investment, he said.
But businessmen are not getting gas even after paying a higher rate of Tk30 per unit, he said. “This is not an investment friendly situation.”
The government built science and technology universities aiming to create skilled human resources as per the requirement of competitive industries, but those universities turn into general universities, the FBCCI president said.
The government is allocating funds for research in the budget, but businessmen do not know who and where research is happening, and research without connection with the industries would not bring any desired result, he said.
The FBCCI president also said that there is a task force consisting of FBCCI and NBR to discuss various problems and complaints, but they do not sit together.
“200 percent fine is levied for mistake in HS code on import of goods, 20 percent of which is received by tax officials, which increases the harassment of businesses,” he said.He said the budget set a higher target for revenue collection, but there is absence of a detailed plan on where and how the revenue would be collected.
Apart from this, the FBCCI President said that increasing the capacity of NBR is very important.
He said that in digital Bangladesh, NBR should also be digitised and income tax and VAT should be collected digitally.
Dr Mohammand Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), professor of DU Abu Eusuf, Kazi Faisal Bin Seraj, Country representative Asia Foundation, BUILD CEO Ferdous Ara Begum, Shawkat Hossain Masum, head of online, Prothom Alo, among others, spoke at the function.
ERF president Mohammad Refayet Ullah Mirdha presided over and Secretary Abul Kashem moderated the program.
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.
Read: BPDB seeks revised agreement with Adani before importing power from Jharkhand plant
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
Import of Reconditioned vehicles fell 75 percent for dollar crisis: BARVIDA
Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has said the import of reconditioned cars has fallen by 75 percent in the last six months due to LC complications caused by the dollar crisis.
President of the organization Habib Ullah Don said this at a press conference on the proposed budget for the financial year 2023-24 at the Dhaka Club on Tuesday.
He said most of the traders who deal with brand-new cars are directors of several banks. As a result, they do not face any problems in opening LC (letter of credit).
Also read: BARVIDA for rationalising `vehicle registration fee’, abolishing ‘dual registration system’
“But the traders, who import reconditioned cars for the middle class, have no bank. So due to the dollar crisis, they face a problem opening LC,” he said.
“Impact of this, only 2800 reconditioned cars have been imported in the last six months, where usually 10,000 to 12,000 cars are imported in six months. As a result, car imports have decreased by 75 percent,” BARVIDA president Don said.
Appealing for the withdrawal of supplementary duty on electric vehicles, he said the country is going through very challenging times due to the availability of fuel and the scarcity of foreign exchange.
Also read: These are the Top Super Luxury Cars for 2023
“The problem slightly will be relieved by increasing the import and use of electric cars. Withdrawing 20 percent supplementary duty on import of electric vehicles to protect the environment and save foreign exchange,” Don said.
At the same time, this car dealer also requested that the registration of electric vehicles should be completed within a day.
Habib Ullah Don said in response to a question that whether it would be logical to increase the import of electric cars in the current electricity crisis, that this crisis is temporary.
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.
Ensure energy, power supply to keep industrial production running: FBCCI
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, urged the government to ensure adequate supply of power and energy to industries through optimal utilization of financial allocations.
It also called for keeping the coal-based power plants in operation, and expanding use of renewable energy in order to provide an uninterrupted energy supply to factories.
The FBCCI president Md Jasim Uddin made this call in a press conference organized on the proposed budget for the fiscal year 2023-2024, at the conference hall of the federation's own premises in Motijheel on Saturday.
At the same time, he also called for the withdrawal of VAT on raw materials with an emphasis on renewable energy.
FBCCI President said, "Industrial production should be kept active to ensure revenue generation for the government. So, there is no alternative to an affordable and uninterrupted energy supply."
He urged that the government should be more strategic in allocating financial resources to the power and energy sector with special importance.
In the proposed budget, the government will borrow Tk1.55 lakh crore from internal sources to meet the budget deficit. Out of this, Tk1.32 lakh crore will be borrowed from the banking sector.
FBCCI President Jasim pointed out that this borrowing will create a barrier to the flow of credit to the private sector.
In such a situation, he requested the government to consider the cost of funds and obtain financing from foreign sources at the lowest possible interest rate, instead of the banking sector.
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.