CBM authorizes banking agents for expanded financial services

The Central Bank of Myanmar (CBM) has announced its decision to permit the operation of banking agents, who will conduct banking transactions on behalf of banks.
This initiative aims to extend financial services to people in remote, unbanked, and underserved areas, promoting inclusivity within the economic system.
Banking agents are business entities that have entered into representative contracts with authorized banks to facilitate banking services, following regulations set by the CBM.
These authorized banking agents will collaborate with the digital banking sector overseen by the CBM and will be required to pay a service charge of K200,000 to the CBM upon appointment.
Potential banking agents applying for this role must provide details such as the proposed agent’s name, location, address, and contact numbers, along with evidence of past business experience from the two years preceding the application. Additionally, they must submit a draft of the agreement between the authorized bank and the agent, complying with existing laws.
CBM will notify successful applicants within three months of receiving complete application documents. Incomplete applications will be replied with requirements to the respective bank within the same timeframe.
Banking agents will be authorized to conduct various transactions, including cash deposits and withdrawals, bill payments, loan collections, remittances, and checking account balances, as per the agreements between the bank and the banking agent.
Banks must submit a single application to the CBM for all proposed banking agents. If a bank wishes to expand the number of banking agents, it must apply for permits every quarter typically in March, June, September, and December.

Source: The Global New Light of Myanmar

Tags: No tags