Guidelines on banking agents announced

The Bank of Thailand (BOT) has issued guidelines for the appointment and operation of banking agents that will help commercial bank cut costs and keep pace with the fast growing technological change.

The BOT guidelines, which consist of three announcements, come into effect today (Mar 6) after it was pulished in the Royal Gazette.

The first announcement involves guidelines on the operation of bank branches; the second announcement on the appointment of banking agents; and the last on the expansion of financial transaction services by banks to keep pace with growing customers need.

The guidelines were meant to help financial institutions or bank cut costs, better respond to fast changing technology and facilitate customer’s money transactions.

Under the guidelines, commercial banks are allowed to appoint agents to offer financial transaction services such as money deposits, transfers, withdrawals and payment. They could also adjust services at their branches and launch electronic banking service to suit consumers’ needs.

Banking agent will be permitted to provide cash withdrawals of up to 5,000 baht per transaction and 20,000 baht per day per customer.

For the termination of services at bank branches, commercial banks are required to notify their customers 45 days in advance.