MOU was signed between ABA, Afghan Post and Da Afghanistan Bank
date: September 7, 2020
In order to expand banking services throughout the country, encourage trade, production and services and bring positive changes in people's lives, a tripartite memorandum of understanding (MOU) was signed between Afghanistan Bank Association (ABA), Afghan Post and Da Afghanistan Bank.
At the conference that was held for this purpose, Mr. Ajmal Ahmadi, Governor of Da Afghanistan Bank (Central Bank), expressed the importance of this initiative, praised the comprehensive cooperation of Afghanistan Bank Association(ABA). Subsequently, Mr. Najibullah Amiri, Executive Director, ABA, stated; Agent banking through (Afghan Post) is a positive step in expanding banking services for the people and affirmed the association's support for this initiative.
This MoU is enacted based on the provisions set forth in the Branchless Banking Regulation of the Afghanistan Bank to provide an opportunity for the Afghan Post to act as a bank’s agent and render banking services.
Afghan Post is a government agency that provides postal services across the country through more than 450 post offices. This institution will carry out the transactions mentioned in the memorandum with the banks in the light of banking laws and regulations.
Branchless banking is the delivery of financial services outside traditional bank branches which provides alternative to traditional branch-based banking that allows financial institutions provide specific financial services to people both in rural and urban areas, by using delivery channels like retail agents and/or relying on information and communication technologies to transmit transaction details – typically card-reading point-of-sale (POS) terminals, ATMs, mobile phones and etc. Which provides easy and reliable service for customers 24 hours a day.
After concluding a specific contract between the Afghan Post Office and the banks, customers can receive specific banking services from Afghan Post agencies in accordance with the agreed policy of the Bank and the Afghan Post.
The objective of this MOU is:
1. To provide legal base for branchless banking services to Afghan Post
2. To increase the outreach of financial services and enhance financial inclusion
3. Provision of branchless banking services
4. Provide the shortest way to access banking services in most parts of the country by Afghan Post
Obligations of the Afghanistan Bank Association
The obligations of the Afghanistan Bank Association under this MoU, in addition to the fulfillment of the requirements set forth in the Branchless Banking Regulation, Da Afghanistan Bank Law, Banking Law, are as follow:
1. Cooperate with Afghan Post and Da Afghanistan Bank concerning the banking services provision to the extent possible;
2. Coordinate with Afghan Post in effective communications with other banks and their representatives; and
3. Facilitate the execution of the Contract between banks and Afghan Post.