The Central Bank of Iran says it is in the process of moving all banking operations online to help improve access to banking services by a larger segment of the population.
“This would augment the policy of enhancing financial inclusion,” Mostafa Qamari-Vafa, head of the CBI public relations department, wrote in a note on his Twitter account.
Qamari-Vafa said the initiative will cover a range of banking services, from opening accounts to customer credibility assessment and electronic signature.
Improving financial inclusion was a pledge made by the Economy Minister Ehsan Khandouzi when he took office in August.
As per a World Bank norm, financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.
For the minister, however, inclusion means allowing “equality in access to banking resources”, describing it a “paradigm shift” in the domestic banking industry.
Addressing an Islamic Banking Conference in September, the minister underscored the role and significance of financial inclusion, saying so far this was not the case in Iran as “people from different walks of life don’t have equal access to banks’ financial resources”.
This issue has received international attention as 70 countries are now implementing financial inclusion rules, he recalled, adding that similar rules are being drafted in the Economy Ministry.
Financial inclusion is not limited to banks but other financial institutions and insurance companies have to revisit their financial policies in this regard, the minister said.
Khandouzi on Tuesday spoke about the possibility of issuing electronic bill of exchange and promissory note, saying the people can access the payment instruments 24/7 without going to the bank.
“By moving these instruments on electronic platforms, monitoring will improve and forgery will be difficult”. In the initial phase three banks have started issuing the electronic bill of exchange and promissory note.
A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.
A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand or at a predetermined date.
