BRAC Bank’s clarification about bKash

DHAKA: In a clarification Tuesday BRAC Bank Limited said bKash as a subsidiary of BRAC Bank has conducted its operations in full compliance with, and as per explicit instruction of, the Bangladesh Bank.

The clarification statement reads as below:

Several negative reports recently published in various media allege that the operations of BRAC Bank Limited and its subsidiary bKash Limited are violating Bangladesh Bank rules.

These reports present erroneous information and misrepresent the facts of the bank and its subsidiary’s operations. The news has created confusion among readers and discomfort among valued customers, stakeholders and patrons of BRAC Bank Limited and bKash Limited.

Since inception bKash as a subsidiary of BRAC Bank has conducted its operations in full compliance with, and as per explicit instruction of, the Bangladesh Bank.

BRAC Bank assumes responsibility for operations of bKash Limited as per directives of Bangladesh Bank. The accumulated physical cash balance (Pool Balance) of all bKash Mobile Accounts, as per Bangladesh Bank’s instruction, is held by BRAC Bank Limited in an account which is under the surveillance of Bangladesh Bank.

Furthermore, BRAC Bank maintains the record of all individual bKash Mobile Accounts in BRAC Bank’s own system, the total balance of which is reconciled with bKash’s Pool Balance on a daily basis.

To mitigate any confusion, Bangladesh Bank has confirmed in its letter dated August 2, 2012 to BRAC Bank, and clarified that bKash Limited’s operations are compliant with the “Guidelines for Mobile Financial Services for the Banks”, and that bKash is operating all customer mobile accounts as the subsidiary of BRAC Bank.

BRAC Bank Limited, the majority shareholder of bKash Limited was established in 2001 to serve small entrepreneurs with loans and other financial facilities.

bKash, as an extended initiative of such vision, is dedicated to providing mobile financial services with the primary objective of financial inclusion of the under-served population who otherwise do not have access to traditional banking or financial services. Valued customers and agents have already begun to reap the benefit of such vision, as bKash is completing its first year of operations.

BRAC Bank reassures its stakeholders and reiterates its commitment to be a socially responsible corporate citizen, without compromising on ethics or laws of the land at any time.

BDST: 1935 HRS, AUG 07, 2012
Edited by: Abul Kalam Azad, Newsroom Editor/ SM Salahuddin, Output Editor