Bangladesh Bank has simplified the bank account opening process for small traders, dropping trade license requirements.
The name of the account will be 'Personal Retail Account' or 'Private Retail Account'. This account can be opened in banks, mobile financial services (MFS), e-wallet service providers, and payment service providers (PSP).
Individual small entrepreneurs can transact through such an account for commercial purposes, said Bangladesh Bank.
The central bank revealed this information in a discussion with Asian Development Bank on Saturday.
A personal retail account can be opened only after submitting the documents required for e-KYC in bank account opening. There is no cost to open this account. Besides, loan will also be available on the basis of transaction. Even if the account is in MFS, the cash-out cost will be less.
Director of the Payment System Department of Bangladesh Bank, Masbaul Haque, told UNB that there is opportunity to open a ‘personal retail account’ without a trade license.
The central bank has issued such a directive to encourage the growth of small business sector.
According to Bangladesh Bank’s circular, no trade license will be required to open an ‘individual retail account’.
E-KYC and necessary documents to open a bank account have to be submitted. It will be managed like a current account. This account can be used for commercial purposes, Bangladesh Bank sources said.
However, a maximum of Tk 10 lakh per month can be transacted through this account. The one-time status of this account will be maximum Tk 5 lakh.
Micro and small traders such as grocers, floating food vendors, bus-CNG-rickshaw drivers, street vendors, sellers of various products and services on Facebook, or service providers engaged in various marginal professions can open this account.
A copy of the national identity card and proof of profession are required to open the account. Trade license is not mandatory for professional credentials. A valid document issued by the local public representative or the relevant business association is required. All banks, MFS, and PSP service providers in the country will open this account free of cost, said the central bank.