The document discusses the prospects of implementing mobile banking in RMG (ready-made garment) factories in Bangladesh. It notes that financial inclusion, including access to banking services, is important for poverty reduction and economic development. Mobile banking could help bring large numbers of RMG workers into the formal banking system. This would reduce costs and risks associated with cash payments, help workers save and access credit, and improve the factories' images. However, implementing mobile banking would require educating workers and officials, coordinating with mobile operators, and addressing security and fraud risks. A pilot program in one factory could demonstrate the benefits of this approach to financial inclusion.

1. Prospects of Mobile Banking in RMG factory
Introduction
Social protection is an important instrument for the pursuit of at least six of the eight present
MDGs of UN by ensuring universal access to key essential services in fundamental areas. One of
the most powerful step for achieving the social protection is financial inclusion. Financial
inclusion targets access to the finance system for all the people of a country, including the poor
and underprivileged group such as workers, farmers, landless labors, urban slum dwellers,
migrants, women etc. as it is important for removal of their poverty and ensuring their economic
emancipation. Financial inclusion also denotes the ability of individuals to access appropriate
financial products and services. RMG sector is one of the key areas to address as it is the driving
economic force for Bangladesh. It is inevitable for a country like Bangladesh to provide financial
opportunities to financially-excluded people like RMG sector as they are almost half the
country's total population. We have to consider all the people including the large work force of
RMG, because development cannot be possible excluding half the total population. Even
providing access to finance is some sort of enabling the workers of RMG sectors to make
contribution to development. And there is a positive correlation that exists between financial
development and economic growth. The financial inclusion ensures people's access to different
types of financial services including loans, deposits, insurance, investment,
Aim
The aim of this paper is highlight the prospects of mobile banking in RMG factories.
Scope
The scope of the paper will be as follows:
a. Prospects of financial inclusion through mobile banking.
b. Problems of financial inclusion.
c. Challenges of cash payments system in factory.
d. Benefits of mobile banking in factory.
e. Challenges on mobile banking implementation in factory.
f. Globalized image of factory.
g. Conclusion
Prospects of Financial Inclusion through Mobile Banking
a. Bangladesh has different microfinance institutions working as a strong tool for financial
inclusion. Some of the leading micro-finance institutions are Grameen Bank, ASA,
BRAC, Micro-finance Foundation. These micro-finance institutions are now
incorporating their service with mobile companies due to rapid growth of mobile users in
Bangladesh.
b. Technology is one of the most important tools for reaching out to the excluded section of
people. Mobile phone can be a new phenomenon for expansion of financial inclusion by
reducing costs of small amounts of credit, transaction costs of credit and account fees.

2. c. The Dutch Bangla Bank and Bkash brought about a major breakthrough in reaching out
to the rural poor people through mobile banking. Presently most of the banks opened
their mobile banking and e-cash service to reach out most of the rural and
underprivileged population.
d. Implementing the E-banking or mobile banking in RMG sector can be an effective way
for bringing a large group of earning people under the finance and banking services. Easy
access to finance at lower costs will prevent the poor workers from falling victims to
moneylenders. If these worker group are interested in taking credit for cultivation,
business, equipment, then the production as well as GDP will also increase.
e. The banking for women can be a new window for financial inclusion. Basically most of
the Bangladeshi women do not have the ability or intension to go for banking. Maybe,
they lack financial knowledge or insufficient money in hand.
f. The postal department is also helping the mobile banking service to receive remittance
easily.
Problems of Financial Inclusion
a. Despite rapid growth of banks, microfinance institutions (MFIs) and cooperatives, the
financial inclusion in Bangladesh has a long way to go to cover all the population,
including those in the rural and urban areas.
b. Banks are not interested to open branches in remote areas and only addressing the solvent
farmers. A large group of insolvent people are excluded from this banking service.
c. Banking involves high operating cost. The poor people with minimum income are shy to
come under banking service due to operating cost comparing to his earning and also due
to time.
d. Poor infrastructure or lack of adequate infrastructure is one of the causes of slow
financial inclusion in the rural sector.
e. Low income of the people is another reason for the financial exclusion. As inflation and
the unemployment rate are high, people cannot but spend all the earnings. They can save
little for depositing in any bank accounts.
f. Lack of financial education keeping people away from the financial inclusion.
Challenges of Cash Payment System in Factory
a. High risk carrying the large amount of cash from the bank. Any kind of robbery or theft
attempt is a common security threat.
b. It involves a large logistical and administrative arrangements. From bank officials to cash
carrier agency, own account section, HR section up to the workers it is a long supply
chain in cash payment system.
c. Sometimes the storage of a large amount of salary in factory premises increase high risk
to the area. Unarmed physical security is at threaten condition during this time.
d. It involves a large amount of business hour to disburse the salary which has a negative
effects on business.
e. Cost is another factor which incur in every process in cash payment.
f. Trust worthiness is another vulnerable factor in cash payment.
g. Cash payment system is not friendly in developing saving habits.

3. h. Involves a risk of fraud case in cash delivery by torn and fake currency notes.
i. Present bank robbery history and pattern gives a clear idea of threat on cash
storage in factory.
j. Police stations are at far distance to cover the immediate incident in late night hour or in
darkness.
k. Recent history of attack on police by the miscreants gives the glimpse of the
adamant attitude towards breaking the law.
Benefits of Mobile Banking in Factory
a. Reduce logistic and administrative involvement.
b. Reduce threat of cash carrying.
c. Reduce security challenges in cash storage.
d. Saves business hour.
e. Increase production capacity by reducing the loss of business hour.
f. Easy to transfer.
g. Lower the cash management cost and administrative burdens.
h. Give the access the workers for real time banking.
i. Convenient and secure way of payment process.
j. It can facilitate accountability and reduce leakage.
k. Worker are motivated by improved and secured way of payment.
l. It allows workers the independency to mobilize funds as per their needs and time.
m. Develop saving habits among workers.
n. A large amount of workers can be bought under banking process which will facilitate the
financial inclusion.
Challenges of Mobile Banking in Factory
a. Adaptation of new system by the factory officials.
b. Motivating the works in the new and modern system.
c. Educating the workers and officials in financing process.
d. Maintain close coordination with mobile operating services.
e. Secure probable fraud case in mobile banking.
f. Ensure the right mobile account for right person.
g. Educate the workers for maintaining the account safety.
Process of Implementing the Mobile Banking
Let us take the example of Bkash for a sample.
a. Communicate with the Bkash authority for business operation.
b. Survey by the Bkash authority for business opportunity and implementation process.
c. Negotiation and business agreement.
d. Motivation campaign in the factory.
e. Opening Bkash account for the workers.
f. Nominating authorized person from both parties to operate the salary account and money
disbursement.

4. g. Prepare salary sheet and send to Bkash.
h. Add the negotiated process fee with the salary.
i. Transfer the total amount of salary to Bkash Bank account.
j. Bkash will send salary to each individual’s mobile account.
k. Workers can cash out from any Bkash agent as normal operation.
l. A confirmatory sms will be sent to each worker’s mobile.
m. Bkash will send the payment report to company.
n. The Overtime (OT) payment after 10 working hours will be shown separately.
o. There will be two payment, one for 10 working hour and another for OT hours.
Globalized Image of Factory
a. A small unit can be designated as pilot project for financial inclusion.
b. By implementing the financial inclusion through mobile banking, the factory image will
be highlighted globally.
c. The Millennium Development Goal (MDG) of UN can be achieved through this financial
inclusion by ensuring sustainable social protection.
d. It can be a highlighting factor towards the Govt by bringing the underdeveloped people
under the umbrella of banking sector.
e. It can focus a positive business image to global market by ensuring the social security of
its workers.
Conclusion
Mobile Phone Banking offers the potential to extend low cost virtual bank accounts to a large
number of currently un-banked individuals worldwide. Change is being driven by falling costs of
mobile phones including airtime, by competition and by the ability of electronic banking
solutions to offer customers an enhanced range of services at a very low cost. The workers of
RMG sectors and their families are by any way related with mobile banking system. A pilot
project can be taken to any factory to incorporate the system and can be increased the area
subsequently. We can ensure the sustainable social protection through this financial inclusion.