The 10^th meeting of Digital Finance Consultative Group (DFCG) was held in Dhaka on 12 September 2017. The title of this round’s discussion was ‘Emerging Frontiers of DFS in Bangladesh: Digital Identity and eKYC’. Around 60 representatives from different public and private sector organizations attended the session.

Executive Director of Bangladesh Bank Mr. Mijanur Rahman Joddar graced the occasion as the Chief Guest. Director (Systems & Services) of the Bangladesh Telecommunication Regulatory Commission (BTRC) Lt. Colonel Azizur Rahman Siddiqui and Managing Director of Bank Asia Limited Md. Arfan Ali attended as specials guests. Deputy Project Director of Identification System for Enhancing Access to Services (IDEA) project under National Identity Registration Wing of Bangladesh Election Commission, Md. Elias Bhuiya delivered a presentation illustrating key features of NID database and activities undertaken.

Objectives of the dialogue

The key objective of the discussion was to explore strategies and opportunities for introducing eKYC utilizing digital identity through engaging regulators, financial institutions, DFS providers and other concerned stakeholders. The dialogue intended to:

Explore strategies for strengthening coordination among Bangladesh Bank, Bangladesh Telecommunication Regulatory Commission (BTRC), National Identity Registration Wing of Bangladesh Election Commission and other concerned government agencies for taking a comprehensive approach towards introduction of a robust eKYC standards in near future which will on one hand ensure better customer verification, and on the other, be convenient to the customers.

Identify potential scopes of introducing tiered and risk proportionate KYC system allowing eKYC mechanisms on pilot basis to identify practical challenges and opportunities for implementation.

Determine next steps towards harmonisation of KYC requirements across banks, mobile network operators (MNOs), mobile financial services (MFS) providers and other related entities based on the pilot experimentation.

Explore scopes of designing sector specific NID data usage policy considering pricing models, privacy and security concerns etc. for facilitating use by the financial service providers and other relevant sectors. Address amendment requirements in existing regulations if necessary.

Identify required regulatory amendments and supportive policy guidelines frameworks for facilitating eKYC and tiered KYC.