A file photo shows a client drops by an ATM to withdraw cash.Photo: STAR

Cash Link Bangladesh, a company formed by a group of banks, and Euronet Worldwide have tied up to set up 505 automated teller machines (ATM) across the country in next three years, officials said.
Euronet, which secures electronic financial transactions for the financial institutions to deliver information and transaction services from ATMs, mobile phones, wireless devices and web etc, will work as the Cash Link's technology operations management partner.
The agreement between the two sides is seen a move to speed up economic activities, bringing more rural people under an electronic transaction system.
"We will set up 100 ATMs in 2008 and the number will reach 350 in 2009 and 505 in 2010," Syed Masodul Bari, head of IT of Al-Arafah Islami Bank Ltd, which is one of the partner banks of the project, told The Daily Star yesterday.
The project cost is estimated to be $17 million, which is equivalent to Tk 117.3 crore (1dollar=Tk69). Of the amount, $4 million will come from entrepreneurs as equity and the remaining money will be financed from bank loans, according to the project proposal.
As per the proposal, AB Bank Limited will own 30 percent stakes in the Cash Link Bangladesh, Al-Arafah Islami Bank Ltd 10 percent, Euro Net 10 percent, a local company Net World 11 percent and the rest 39 percent shares will be owned by some banks that include United Commercial Bank, South East Bank and Agrani Bank.
Besides ATMs, some 10,000 point-of-sale (POS) centres, 9.5 lakh debit and 22.55 lakh pre-paid cards will be marketed under the project by 2010.
As on October 2007, the country has only 438 ATMs, 10,526 POS, 7.7 lakh debit and 30,000 credit cards issued by all banks in the country.
Electronic transaction is getting increasingly popular across the world. Many developing countries, including China and India, are trying to build a 'cashless society' by introducing ATM, debit and credit cards to avoid risk in moving with cash.
Rural people in Bangladesh are deprived of banking services and the central bank has set a branch opening guideline for the banks. According to the guideline, a bank has to open at least one branch in rural area if it opens four urban branches. But most of the private banks are reluctant to open branches in rural areas to avert losses.
“We'll make cashless banking happened not only in urban areas but also in rural Bangladesh. We'll issue over three million debit and pre-paid cards by 2010, the largest in the country,” a senior AB Bank official said.
He said: “More than 60 percent of the 505 ATMs will be set up in rural areas.”
The head of IT at Al-Arafah Islami Bank said the work on data processing are going on in full swing and we hope to start our operations on a limited scale by May this year.
He said customer-base will rise significantly as some 5 to 6 banks will join the network. Some other banks may also join as associate members who would not have equity partnership in the project.
"We'll be able to get back our investment in three years," the AB Bank official hoped.
The project has already got Bangladesh Bank's nod, officials said.
According to Dutch-Bangla Bank Limited, which owns the highest number of ATM booths in the country, every transaction by the ATM costs the bank Tk 70, but it charges only Tk 10.
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