Rural Deposits Reach Tk 1.24 Trillion by June; Remittance Inflows Hit Tk 1.834 Trillion

Agent Banking Growth Stalls Amid New Gender Quota Rule

Bangladesh’s booming agent banking sector, which had mobilised over a trillion taka in rural deposits and even higher remittance inflows until June, is now slowing under new regulatory requirements.

According to official data, commercial banks collected Tk 1.239 trillion in deposits and Tk 1.838 trillion in remittances through agent banking outlets as of June 2025. From this pool, Tk 290.09 billion was disbursed to grassroots clients, injecting fresh liquidity into the rural economy.

But expansion has begun to decelerate. The number of agents dropped 4% year-on-year and 3% from the previous quarter, with 618 agents leaving in a year and 465 between April and June alone. Outlets followed a similar trend, falling by 916 year-on-year and 466 quarter-on-quarter, pushing the network to multi-quarter lows.

Industry insiders link the contraction to a new Bangladesh Bank directive requiring that half of new agent banking entrepreneurs must be women. First announced by Governor Dr Ahsan H. Mansur in March and formalised through a May circular, the policy aims to enhance female participation in finance. However, bankers say the rule has inadvertently slowed growth, as female entrepreneurs with the necessary technological skills remain scarce in rural areas.

“This is a technology-driven business, and most rural women are yet to acquire the required skills,” a senior private bank executive told the FE. He added that many male operators attempt to register outlets under their wives’ names, but the technical demands often prove challenging. Another banking executive noted that while female entrepreneurs are difficult to find in villages, the large pool of young people could sustain future expansion.

The slowdown is also visible in client activity. The number of accounts opened under agent banking fell by more than 1% last quarter, driven partly by Agrani Bank PLC’s decision to suspend its agent banking operations on June 21, 2025.

Launched in 2013 to bring banking services to underserved populations in remote areas, agent banking had become one of the country’s fastest-growing financial channels. Customers use these outlets for deposits, loans, remittances, bill payments, and access to government benefits.

As of June 2025, the network comprised 15,373 agents and 20,557 outlets nationwide. Analysts warn that a sustained decline could undermine efforts to integrate unbanked populations into the formal economy through savings and financing services.