Financial literacy stands for the knowledge, skills, and understanding of financial concepts and tools that enable individuals to make informed and effective decisions regarding their personal including budgeting, saving, investing, borrowing, and managing debt. Financial literacy is essential in supporting financial inclusion.
Financial inclusion indicates the availability and accessibility of financial services and products to all segments of society, particularly to individuals and communities who have traditionally been excluded from formal financial systems. It aims to provide opportunities for people to participate in the formal economy, manage their finances, and improve their overall economic well-being.
Under this programme, various groups will be brought under financial literacy by dividing them into 3 levels, which are as follows:
| Tier-wise Target Groups | ||
|---|---|---|
| Tier-1 | Tier-2 | Tier-3 |
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Answer: When a bank accepts money from a person or organization as a deposit, it opens an account in the name of that person or organization. The account through which the bank keeps and settles the accounts of all transactions including depositors’ money, withdrawals from it is called bank account. Interested individuals and organizations can open such accounts by applying in the prescribed form, submitting signatures, photographs and necessary documents and depositing the prescribed minimum amount.
Answer: Banks generally provide a printed or online form to the customer for opening an account with certain conditions attached. A customer fills up the said form correctly and submits it to the bank for opening an account and if the bank checks the form well and is satisfied, then opens a bank account in the name of the customer.
Answer: Islami Bank basically provides four types of account opening. Namely:
There are also several products for different types of people which are known as No-Frill Accounts. Such as:
Answer: Nominee is a person/persons nominated by the account holder during his/her lifetime. Account holder can nominate more than one person as nominee. In the case of multiple nominees, the account holder will specify who will claim the percentage in the account opening form. The account holder can change the nominee at any time during his lifetime. One copy of passport size photograph of the nominee must be attested by the account holder and a copy of the nominee’s national identity card should also be attached to the said form.
Minors can also be nominated. However, if the nominee is a minor at the time of death of the account holder, the deposit amount can be withdrawn subject to submission of proper evidence with the help of the minor’s legal guardian.
Answer: If an account in the bank is inactive for a certain period of time, if no transaction takes place in this account, then the bank marks this account as a dormant account. And this time is different for each account.
Answer: A customer can close his bank account if he no longer wants to manage it. In order to close the bank account, he has to take care of a few things:
Answer: According to the instructions of Bangladesh Bank, to open a bank account, the bank has to provide detailed information about the customer. For this, while opening a bank account, the customer has to fill in his information in a specific table and submit it to the bank. That is KYC. In support of the information provided by the customer, necessary documents such as customer’s photo, identity card, income proof, transaction information, address proof documents etc. have to be submitted. By verifying/reviewing these data, bankers determine the customer’s risk.
E-KYC is a method of collecting information about the customer by biometric (fingerprint)/iris (eyes) method followed by digital method. Currently, by following the e-KYC system, bank accounts can be opened very easily and in a short time without going to the bank. In e-KYC system, customer information is to be provided electronically and automatically stored in the database of the bank/financial institution.
Digital banking refers to a banking system where various banking services and activities are done through internet and mobile applications. Through digital banking, customers can avail various banking services at home without going to the bank.
Various services are available through digital banking which makes banking activities easier and faster for customers. The main services of digital banking are:
e-KYC (e-KYC) refers to the Electronic Know Your Customer (Electronic Know Your Customer) process, which verifies the customer’s identity through digital means. In e-KYC system, customer’s personal information such as name, address, date of birth etc. is collected and verified digitally. The e-KYC process is important for banks and financial institutions as it ensures customer identity, prevents fraud and ensures legal compliance.
Steps of e-KYC process:
Collection of Customer Information:
• First the customer’s personal information is collected, such as name, address, date of birth, etc. This information is usually taken from the customer’s identity document, such as a National Identity Card (NID), passport, or driver’s license.
Document Upload:
• Customer is asked to upload scan or photo of their identity card and other required documents.
Biometric Data Collection:
• In many cases, the customer’s fingerprint or facial image (facial recognition) is taken for identity verification.
Digital Signature:
• The customer may be asked to provide a digital signature, which is a secure and recognized method to ensure the customer’s consent.
Data Verification:
• Collected information is verified with various government databases. For example, national identity card information is verified against government databases.
Document Verification:
• Uploaded documents are verified. In some cases, physical verification may also be done.
Application Processing:
• After verifying the information and documents, the bank or financial institution processes the customer’s application and an account is opened.
Notification:
• Once the process is completed, notification is sent to the customer that their e-KYC has been completed.
Through the e-KYC process, banks and financial institutions can verify customer identity quickly, securely and effectively, saving time and hassle for customers as well.
Digital banking offers many benefits, but also comes with some risks. Below are the main risks associated with digital banking:
Cyber Attacks and Hacking:
• Banking systems and customer personal information are vulnerable to cyber-attacks. Hackers can access customer banking accounts and steal money.
Phishing and Scamming:
• Fraudsters may use phishing emails or fake websites to steal customer personal information. They can make illegal transactions with this information.
Malware and Viruses:
• Malware and viruses can attack computers or mobile devices to steal banking information.
Privacy Risks:
• With digital banking, customer personal and financial information is processed online, which may affect the privacy of the information.
System Downtime:
• If the banking system or server is down, customers cannot receive services, which may cause complications in transactions.
Unauthorized access:
• Someone else may gain access to the customer’s account due to weak passwords or security measures.
Personal Device Security:
• If the customer’s mobile or computer does not have proper security measures, it can be a big risk.
Impersonation (Electronic Identity Theft):
• Someone can steal the customer’s identity and open fake accounts in his name and make illegal transactions.
Network Security:
• Banking using open or unsecured networks exposes the risk of data theft.
Financial loss:
• Any of the above risks may result in direct financial loss to the customer.
Both banks and customers need to be aware and strengthen security measures to address these risks associated with digital banking. For example:
Adopting all these security measures will make digital banking more secure and risk-free.
Answer: Agent banking is a banking system through which banking services are provided to the underprivileged and in remote areas through a limited range of representatives appointed by the bank, authorized and covered by a specific contract. One of the key features of agent banking is financial inclusion. About 50 percent of the total population of Bangladesh is still deprived of banking facilities. Efforts are made to involve all these groups in financial activities through agent banking. Agent banking is basically a digital operation which is relatively low risk.
Answer: According to the policy of Bangladesh Bank, account is opened in agent banking outlet according to the same rules as opening account in a bank branch. However, the customer has to be present in person to open the account at the outlet. Accounts are opened by customer’s live photo capture, fingerprint taking and TP, KYC, National ID verification and nominee data collection as per his income. Customers can transact from outlets and branches through the said account.
| Number And Limit of Daily Transactions at Agent Outlets | ||||||
|---|---|---|---|---|---|---|
| Account Type | Deposit | Withdrawal | Transfer | |||
| Number | Money | Number | Money | Number | Money | |
| Current | 4 | 6 | 2 | 5 | 4 | 15 |
| Savings | 2 | 4 | 2 | 3 | 2 | 5 |
| SND | 4 | 6 | 2 | 3 | 4 | 10 |
Answer: According to the policy of Bangladesh Bank, the following institutions can be agents-
Answer: Account opening and management through agent banking is safe. To open an account at an agent outlet, the customer has to be present in person. Customer’s live photo capture, 10-finger fingerprint and national identity card are verified online from the Election Commission server to open the account. A confirmation SMS with the account number will be sent to the customer’s given mobile number subject to successful account opening. Later, transactions can be done through fingers from the outlet through the said account and after each transaction, an automatic printed receipt is issued and an SMS containing the transaction information is sent to the given mobile number. As a result, the customer can be informed about his transaction and balance easily and securely. Finally, account opening and management through agent banking is completely safe.
Opening a new account in Islamic Wallet is very easy! Currently, all the customers of Airtel, Banglalink, Teletalk, Grameenphone and Robi can open Islamic Wallet account by downloading the Islamic Wallet app on their mobile phone. Any person can open the account by sitting at home by following the steps in the Islamic Wallet App.
What is required to open an account through Islamic Wallet App-
Account Opening Procedure:
* Always keep your PIN number secret
Islamic Wallet account can be opened in collaboration with the nearest digital registration point. Bring with you to open the account-
Account Opening Process:
Answer:
1. Customer Account
2. Merchant Account
3. Distributor Account
4. Personal Retail Account
| Transaction Limits | ||||||
|---|---|---|---|---|---|---|
| Type of Transaction | Maximum Transaction Amount | Amount Limit per Transaction | Maximum Limit | |||
| Daily | Monthly | Minimum (BDT) | Maximum (BDT) | Daily (BDT) | Monthly (BDT) | |
| Cash-in from agent points | 5 | 25 | 50 | 30,000 | 30,000 | 2,00,000 |
| Add Money from Bank Account/Card | 5 | 25 | 50 | 50,000 | 50,000 | 3,00,000 |
| Send Money (P2P) | 50 | 100 | 10 | 25,000 | 25,000 | 2,00,000 |
| Mobile Recharge | 50 | 1,500 | 10 | Prepaid: 1,000 Postpaid: 5,000 |
10,000 | 1,00,000 |
| Payment | No Limit | No Limit | 0.1 | No Limit | No Limit | No Limit |
| Cash-out from agent points | 5 | 20 | 50 | 25,000 | 25,000 | 1,50,000 |
| Bank Account Transfer | 5 | 20 | 50 | 50,000 | 50,000 | 3,00,000 |
* A customer can keep a maximum of Rs 300,000 in his MFS account at any one time.
* Transaction limits are variable as per Bangladesh Bank guidelines.
Answer: Services of Islamic Wallet:
Answer: Awareness is the first and best tool to prevent fraud. So always keep few things in mind, only then your money will be safe:
Islamic Wallet is always striving and determined to provide fraud and risk free digital financial services to customers. Our mission is to be vigilant and create awareness to protect your money and personal information and avoid fraud. You can learn more about the ways in which fraudsters can lure you into a fraud trap from the following fraud patterns and take the necessary precautions to avoid fraud.
If you think you have been scammed, follow these steps:
**A channel of communication with the Islamic Wallet Authority for any business and complaint related needs
