Regulatory Alerts2024-07-08
Added · Updated
BRPD Circular Letter No. 30: Providing online banking services to the customers of Islamic banking branches and windows at Conventional branches and sub-branches
This circular permits the customers of Islamic banking branches and windows to conduct online Islamic banking transactions at conventional branches and sub-branches, subject to specific operational conditions. Banks must establish Islamic banking help desks staffed by trained personnel, use separate Islamic core-banking software, and restrict transactions to online financial activities and deposits/withdrawals for approved Islamic customers. The document prohibits new account opening or investment programs at these desks and requires the use of general accounts held at Islamic branches for all Islamic transactions, with funds strictly separated from conventional banking operations.
Bangladesh Bank Chief Controller Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD/Policy-1/2009-2010/127 Banking Regulation and Policy Department BRPD Circular Letter No.-30 08 July 2024 Date: ---------------- 24 Asharh 1431 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Re: Providing online Islamic banking services to the customers of Islamic banking branches and windows at Conventional branches and sub-branches.
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Reference is drawn to the Guidelines on Islamic Banking Services issued by Bangladesh Bank through BRPD Circular No.-15 dated: 09 November 2009.
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The aforementioned guidelines provide necessary instructions for the operation of Islamic banking programs by Islamic banks and the Islamic banking branches of conventional banks. Now, to further expand Islamic banking programs and reach customers, the customers of the bank's Islamic banking branches/windows may operate the following online Islamic banking programs at conventional branches and sub-branches:
(1) There must be an Islamic banking help desk at branches and sub-branches to provide Islamic banking services to customers; (2) Trained and experienced staff must be posted at the Islamic banking desk; (3) Through the Islamic banking desk, online financial transactions or the facility of deposit, withdrawal, and transfer for customers of the bank's approved Islamic banking branches/windows only, as account holders, may be provided; (4) A separate 'Islamic Core-Banking' software must be used to operate Islamic banking programs; (5) Islamic banking transactions will be conducted through the general account (Current Account) maintained at the Islamic banking branch; (6) Funds in the general account maintained at the Islamic banking branch will not be used for conventional banking programs; (7) No program related to opening customer accounts and investments may be conducted through the Islamic banking desk; (8) In the operation of online Islamic banking programs through the Islamic banking desk, branches must display 'Online Islamic Banking Services Provided' banners/signboards/posters/festoons at prominent locations.
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These instructions are issued under the powers conferred by Section 45 of the Companies Act, 1994.
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These instructions will come into force immediately.
Yours faithfully, (Mohammad Shahriar Siddique) Director (BRPD) Phone-9530252