Banks get 3 more months to introduce simple account opening forms

Staff Correspondent | Published: 23:42, Jul 30,2020


The Bangladesh Bank on Thursday granted banks three more months to introduce the new and simplified forms modified as per the recommendations of a government committee for opening bank accounts.

In February, the BB asked the banks to introduce the simplified forms — know-your-customer (KYC) and account opening forms — by June 30 this year.

In light of the changed situation after the coronavirus outbreak, the BB instructed the banks to introduce the simplified forms by September 30 this year.

The BB circular also asked the banks to introduce the forms within the extended timeframe and submit them to the central bank within 10 days of launching.

A government committee found that the traditional account opening forms were burdened with information.

The forms were updated to make account opening more customer-friendly in accordance with the evolvement of information technology, improvement of the financial infrastructure and to facilitate faster information flow with the assistance of technology.

Apart from the requirements of the simplified forms, the banks have been allowed to seek additional information from customers if they deem it necessary.

On August 22 last year, the Cabinet Division asked the Financial Institutions Division to take steps for simplifying the forms as a large section of people still remain unbanked due to complexities in completing the current account opening process.

Quoting BB sources, FID officials said that 80 per cent of people in the country had no access to formal banking services with only 5 per cent of rural and 40 per cent of urban residents holding bank accounts.

Meanwhile, another BB circular on the day exempted moneychangers from the need to submit hard copies of daily transactions of foreign currency to the central bank.

As the moneychangers were reporting to the central bank daily through the online reporting system, they were exempted from the requirement to submit the hard copies, the central bank said.

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