Customer Satisfaction of Credit Card Regarding Customer Service of Brac Bank

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Customer Satisfaction of Credit Card Regarding Customer Service of Brac Bank

Organizational Overview

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and 2005. The Bank operates under a “double bottom line” agenda where profit and social responsibility go hand in hand as it strives towards a poverty free enlightened Bangladesh.

A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank’s footprint has grown to 36 branches, 400 SME unit offices and 54 ATM sites across the country, and the customer base has expanded to 200,000 deposit and 45,000 advance accounts. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs and paid up capital of the same bank is Tk 500 million. At present, BRAC Bank’s paid up capital stands at Tk 1.2 billion with the total number of shares standing at 12 million BRAC Bank raised Tk130cr from capital market on 29 January 2008.

Fig-1.1: Shareholders of BRAC Bank Limited

Background of the Organization

BRAC Bank Limited is a scheduled commercial bank in Bangladesh. It established in Bangladesh under the Banking Companies Act, 1991 and incorporated as private limited company on 20 May 1999 under the Companies Act, 1994. The primary objective of the Bank is to provide all kinds of banking business. At the very beginning the Bank faced some legal obligation because the High Court of Bangladesh suspended activity of the Bank and it could fail to start its operations till 03 June 2001. Eventually, the judgment of the High Court was set aside and dismissed by the Appellate Division of the Supreme Court on 04 June 2001 and the Bank has started its operations from July 04, 2001. The Chairman of the Bank is Mr. Fazle Hasan Abed. Now the Managing Director and CEO as well as COO of the bank is Mr. Kaiser Tamiz Amin. The bank has made a reasonable progress due to its visionary management people and its appropriate policy and implementation.

Corporate Vision

BRAC Bank will be a unique organization in Bangladesh. It will be a knowledge-based organization where the BRAC Bank professionals will learn continuously from their customers and colleagues worldwide to add value. They will work as a team, stretch themselves, innovate and break barriers to serve customers and create customer loyalty through a value chain of responsive and professional service delivery.Continuous improvement, problem solution, excellence in service, business prudence, efficiency and adding value will be the operative words of the organization. BRAC Bank will serve its customers with respect and will work very hard to instill a strong customer service culture throughout the bank. It will treat its employees with dignity and will build a company of highly qualified professionals who have integrity and believe in the Bank’s vision and who are committed to its success. BRAC Bank will be a socially responsible institution that will not lend to businesses that have a detrimental impact on the environment and people. So BRAC Bank operates following a specific vision like:

“Building a profitable and socially responsible financial institution focused on Markets and Business with growth potential, thereby assisting BRAC and stakeholders build a “just, enlightened, healthy, democratic and poverty free Bangladesh“.

Corporate Mission

· Sustained growth in ‘small & Medium Enterprise’ sector

· Continuous low cost deposit growth with controlled growth in Retained Assets

· Corporate Assets to be funded through self-liability mobilization. Growth in Assets through Syndications and Investment in faster growing sectors

· Continuous endeavor to increase fee based income

· Keep our Debt Charges at 2% to maintain a steady profitable growth

· Achieve efficient synergies between the bank’s Branches, SME Unit Offices and BRAC field offices for delivery of Remittance and Bank’s other products and services

· Manage various lines of business in a fully controlled environment with no compromise on service quality

· Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality

Corporate Values

The Bank’s Strength emanates from its owner – BRAC. This means, it will hold the following values and will be guided by them as it does its jobs.

· Value the fact that we are a member of the BRAC family

· Creating an honest, open and enabling environment

· Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit

· Strive for profit & sound growth

· Work as a team to serve the best interest of our owners

· Relentless in pursuit of business innovation and improvement

· Value and respect people and make decisions based on merit

Base recognition and reward on performance

· Responsible, trustworthy and law-abiding in all that we do.

Corporate Goals

BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprises through out Bangladesh. BRAC Bank’s goal is to provide superior service even to the remotest regions of Bangladesh, so that by enabling this service any one can send money to his/her relatives from abroad within maximum of 72 hours as BRAC Bank has a vast network of BRAC Remittance outlets all over the country. In order to deliver the services efficiently, it is using branches, correspondence banks and especially 1200 BRAC field offices. The remittance network is electronically connected over 1000 BRAC offices throughout the country to provide fast and expeditious service.

Corporate Objectives

The objective of BRAC Bank Limited is specific and targeted to its vision and to position itself in the mindset of the people as a bank with difference. The objective of BRAC Bank Limited is as follows:

• Building a strong customer focus and relationship based on integrity, superior service.
• To creating an honest, open and enabling environment
• To value and respect people and make decisions based on merit
• To strive for profit & sound growth
• To value the fact that they are the members of the BRAC family – committed to the creation of employment opportunities across Bangladesh.
• To work as a team to serve the best interest of our owners
• To relentless in pursuit of business innovation and improvement
• To base recognition and reward on performance
• To responsible, trustworthy and law-abiding in all that we do
• To mobilize the savings and channeling it out as loan or advance as the company approve.
• To establish, maintain, carry on, transact and undertake all kinds of investment and financial business including underwriting, managing and distributing the issue of stocks, debentures, and other securities.
• To finance the international trade both in import and export.
• To develop the standard of living of the limited income group by providing Consumer Credit.
• To finance the industry, trade and commerce in both the conventional way and by offering customer friendly credit service.
• To encourage the new entrepreneurs for investment and thus to develop the country’s industry sector and contribute to the economic development.

Bank’s Culture

Bank has adopted trust as a corporate value which is acronym for team work, respect for all people, unquestionable integrity, excellence in everything BRAC Bank of SME do, Sense of urgency in getting things done and total commitment.

All employees are expected to conduct themselves in accordance with the rules and regulations of the bank.

Bribes & Inducements

It is not acceptable to offer or receive any form of bribe or inducement, or direct anyone else to do on behalf of the bank. The following activities are strictly prohibited:

• Payment or other benefits which violate the country’s law or the bank’s policies
• Payment or other benefits for procurement of business
• Payment or other benefits to public officials or politicians to induce them to exercise their discretion in the bank’s favor

Management of BRAC Bank Limited

Boards of directors are the sole authority to take decision about the affairs of the business. Now there are 5 directors in the management of the bank. All the directors have good academic background and have huge experience in business. Mr. Fazle Hasan Abed is the chairperson of the bank. The board of directors holds meetings on a regular basis. The current management teams and board of directors’ name are given in the following table:

Management team:

Kaiser Tamiz Amin

Managing Director & CEO

and

Chief Operations OfficerRais Uddin Ahmad

Head of Risk Management & Company SecretarySaifuddin M. Naser

Head of Retail BankingMohd. Rafat Ullah Khan

Head of CreditNaushad Hussain

Head of Secured Remittance ServiceTahniyat Ahmed Karim

Head of Human ResourcesFaruk Ahammad

Head of Financial AdministrationFarzana Chowdhury

Head of Small & Medium Enterprise (SME)Md. Rahmat Pasha

Head of TreasuryKhwaja Shahriar

Head of Corporate BankingShah Alam Bhuiyan

Head of Asset OperationsMizanur Rahman Chowdhury

Head of Information Technology (IT)

Board of Directors:

Mr. Fazle Hasan Abed, Chairman
Mr. Syed Humayun Kabir, Director	Mr. Md. Aminul Alam, Director
Mr. Paul D. Christensen

(Nominated By Shorecap International Limited), DirectorMr. Muhammad A. (RUMEE) ALI (Nominated by BRAC), DirectorMr. Quazi Md. Shariful Ala

(Nominated by BRAC), DirectorMr. Imran Rahman,

Managing Director and CEO

Departments of BRAC Bank Limited

If the jobs are not organized considering their interrelationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departmentalization is not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. BRAC Bank Limited has does this work very well. Departments are as follows:

1. Human Resources Department

2. Financial Administration Department

3. Asset Operations Department

4. Credit Division

5. SME Division

6. Internal Control & Compliance Department

7. Marketing & Product Development

8. Impaired Asset Management

9. Remittance Operation Department

10. Treasury Front

11. Treasury Back

12. General Infrastructure Service

13. Information Technology Department

14. Customer Service Delivery

15. Cards Division

16. Call Center

17. Cash Management

18. Secured Remittance department

19. Women Entrepreneur Cell

20. Payment Service

Business Units

There are five different business units generating business BRAC Bank Limited:

• Small & Medium Enterprise (SME)
• Corporate Banking
• Retail Banking
• Treasury
• Remittance Services

All the units are being operated in a centralized manner to minimize costs and risks.

Products and Services

A. Small & Medium Enterprise (SME)

For SME loan operation,

BRAC Bank Ltd has in total 900 unit offices, 80 zonal office, 12 territory and 1800 Customer Relationship Officers. These CROs work for the Bank to converge clients for getting the SME loan. Once CROs get the loan application and if it is less than 500,000 TK then zonal officer has the authority to approve the loan. But if it is above 500,000 then the CROs send it to Head Office for all necessary approval. After approving the loan then Asset Operation Department starts its work. As the scopes of businesses are growing, the amount of files and disbursement is getting bigger. In May 2007, AOD has processed 3249 files amounting Tk. 1,235,200,000. So SME Division’s success greatly relies on the performance. Up to April 2007, BBL provides loans for 70000 clients and in total 2265 crore TK. But the most important thing is only 17 crore TK is bad loan; this is a great achievement for SME unit of BBL. Currently they have 44147 outstanding clients and in total 1070 crore TK SME loan.

SME Loan process flow is shown below-

When a customer comes to the unit office for a loan request, first he/she meets with the customer relationship officer to discuss about the loan, which loan product is suitable for him/her. After then the following process takes place:

B. Corporate Banking

Categories- the facilities our corporate Division offers to our customers are mainly of two-

Funded Facilities Non-Funded Facilities

Funded Facilities:

Funded tells us that this type of facilities allows the customer to have money ‘on his hand’ for use i.e. he will get money as to meet his business demand. Examples are-

Working Capital Loan.

Overdraft Facility.

Term Loan.

Lease Finance.

Demand Loan.

Non-Funded Facilities:

Non-Funded facilities are those type of facilities where customers don’t get fund on their hand rather get Bank’s Guarantee service to do international trading-import and export. Letters of Credit, Bank guarantees etc. are the examples of the non-funded facilities.

Working Process of corporate wing:

An example will be handy to understand when the corporate wing starts its work. Say you are one of our clients. You need Tk. 5 core to be used in your business. The first you may contact is the RM (Relationship Manager) who is our delegate to make all kinds of negotiation with you. He then Would take the proposal to the corporate Head takes it for further analysis such as whether it would be profitable venture for the Bank, or whether the Bank can disburse more in the industry etc. Then if the Corporate Head thinks it fit to go ahead, he then would take the file to the credit division – works to find out the worthiness of the borrower and other relevant facts important to assess the possibility of recovery. Then it goes to the credit committee and then finally the file goes to the Managing Director. A diagram is given for better understanding-

c. Retail Banking

Retail Loans are consumers’ loan. Based on the customer demand these loans are given. BRAC Bank has a wide range of retail loan-

1. Car Loan. 2. Doctor’s Loan.

3. Secured Loan/OD. 4. High Flyer Loan.

5. Top Up Loan. 6. Credit Card Loan.

7. Study Loan. 8. Teacher’s Loan.

9. Now Loan. 10. Salary Loan.

Process Flow of Retail Loan

BRAC Bank’s Retail Division is being operated centrally. Under the Retail Banking Division all the branches, which acts as sales & service center, are reportable to Head of Retail Banking. Different products of Retail Banking are as follows:

i) Deposit Products

ii) Lending Products

iii) Locker Services

iv) Remittance Services etc.

The product and services that are currently available are given below-

I) Depository Products

BRAC Bank Limited is now offering 6 depository products for mobilizing the savings of the general people:

· Savings A/C

· Current A/C

· STD A/C

· Fixed Deposit A/C

· DPS A/C

II) Loan Products

BRAC Bank is offering the following loan and advance product to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client. The loan and advance products are:

III) New Product and services

The bank has its concentration for new product and services development for satisfying its customer and increasing its customer base. The bank firmly believes that technology based product and services will play significant role in the performance of the bank as people are getting more conscious about their service quality. They prefer now faster service with least cost. For delivering faster service the bank has introduced online banking service from the very beginning. There are some new products and services that BBL has lately introduced.

These are:

· Now Loan

· Salary Loan

· Credit card Services (Proposed)

· Islamic Banking Services (Proposed)

· ATM services

BRAC Bank Limited is always emphasizing the improvement of banking service and betterment of living standard of the general people of Bangladesh. The product and services are targeted to the lower level to the upper level income group in deposit collection. For lending, the services are made if certain requirements are fulfilled

IV) Treasury

Money Market Desk

BRAC Bank has a strong presence in the Treasury Market in Bangladesh. The Money Market Desk of the Treasury Division mainly deals in Bangladeshi Taka transactions. The basic activities undertaken by the Money Market Desk are:

· Management of Statutory Reserves viz. Cash Reserve Ratio (CRR) & Statutory Liquidity Ratio (SLR)

· Daily Funds & Liquidity Management

· Investment Management

Treasury Services

· Call/Overnight Lending & Borrowing

· Term Money Borrowing & Lending

· Repurchase Agreement

· Treasury Bills (T-Bills)

v) Secured Remittance Services (SRS)

BRAC bank has introduced an innovative remittance services for Bangladeshis living abroad with some unique features compared to any of the existing remittance program. Bangladeshi expatriates can now send their money to their relatives any where in Bangladesh even to the remotest part within 24 hours at a reasonable cost and competitive exchange rate.

vi) Information Technology (IT)

BRAC Bank Ltd. is currently running countrywide true online banking system. The system allows their customers to do transactions all around the country. The bank cheques are all marked with Barcodes that makes each cheque unique and disallows it to be duplicated. All the signature and customer information with their pictures can be verified from any console at any branch on the bank. We also ensure Offsite backup and Disaster Recovery. Their Goal is to provide a true online baking system, which will not only fulfill the demand of time but also set new benchmarks in twenty-first centuries banking world.

Special Features

All Branches are computerized

• 99% of the bank’s work is automated using latest technology
• BRAC Bank is a member of SWIFT community
• Intercity Branches are connected via optical fiber backbone network

Performance of BRAC Bank Limited

BRAC Bank Limited will be the most successful private sector commercial bank in our country, though it started its operation few years back. It has achieved the trust of the general people and made reasonable contribution to the economy of the country by helping the people investing allowing credit facility.

Branches

BRAC Bank Limited is fast growing commercial banks in our country. Bank has established a good operating network throughout the country. It has 36 branches throughout the country till March, 2008.

Code	Branch		Code	Branch		Code	Branch
1101	Agrabad		1506	Dhanmondi		4301	Narayanganj
1102	Mominroad		1507	Banani		5501	Rajshahi Branch
1103	Halishahar Branch		1508	Ganakbari		6301	Shlhet
1301	Comilla Branch		1509	Satmosjid		6302	Biani Bazar
1501	Gulshan		1510	Uttara		6303	Zinda Bazar
1502	Nawabpur		1511	Mirpur		6304	Bishwanath
1503	Moghbazar		1512	Rampura		6305	Maulivi Bazar
1504	Keranigonj		1801	Sona Gazi		6306	Nobiganj
1505	Motijhil		2401	Jessore Branch		1104	CDA AVE BR
1513	Motijhil – Graphics		1516	Dohar		7101	Potiya
1514	Shaymoly		4401	Monohardi		501	Borisal
1515	Tongi		1401	Cox’s Bazar		701	Bogra

Capital Fund

The authorized and paid up capital of BBL is TK.1000 million and TK.500 million respectively. The paid up capital is one of the strongest in the banking industry. The bank is going to raise its paid up capital in the month September, 2006 by TK.500 million with issuing public share of 5, 00,000 of TK.100 each.

Internal and External source of cash

Date	31/12/03	31/12/04	31/12/05	31/03/06
Ordinary share	405,020,000	500,000,000	500,000,000	500,000,000
Preference share				150,000,000
Statutory reserve		19,860,550	58,396,570	135,564,816
Surplus in profit	(9,095,940)	70,346,259	224,490,340	226,006,069
Total	395,924,060	590,206,809	782,886,910	1,011,507,885

(Amount in Taka)

Asset operation department

Formerly known as the Loan Administration Department, Asset operations department tries to mitigate all loan portfolio risks and also tries to ensure effective control and monitoring o securities and documentation process. It has started its operations with retail and corporate loan portfolios of Gulshan Branch in May 2003. The loan portfolios of remaining branches were brought under its control in June 2003. Finally in July 2003, the SME division also came under its control. Today, the Asset Operations Department of this bank is playing an enormous role risk mitigation as well as smooth disbursement and monitoring of loans initiated by all its three business divisions: SME, Retail and Corporate.

The flow chart below shows where exactly asset operations stand in the course of a loan disbursement:

Figure position of AOD

As can be seen in the process illustrated above, the Asset operations department acts as the last frontier in the disbursement process. After the clients have been reviewed and recommended by the appropriate business divisions and approved by the credit committee, the files are then sent to asset operations where the disbursement is initiated after proper scrutiny of all documents and securities.

In this way, the asset operations department provides the much needed back office support to the business divisions in disbursing the loans marketed by them to actual customers. It is the last check-point to mitigate all loan related risks before disbursement of a loan and performs in line with the Credit Risk Management Guidelines of Bangladesh Bank. All its activities and responsibilities fall under two broad categories as tabulated below:

Disbursement and Monitoring	Custodian and Compliance
Disburse (also review) loans after obtaining clean CIB reports of the clients, checking all documents and collecting securities after proper lien and charges creation as per terms of approval.

Periodic review of the conditions, covenants and monitoring of past due loans, limit, expiry and document deficiency etc.Ensure safe-keeping of securities and all other charge documentations in a locked archive as per a checklist for ready references in future.

Prepare and submit central bank returns and other MIS reports and assist (external & internal) and ensure due compliance of all audit queries in a timely manner.

In addition to the activities mentioned above, Asset Operations Department also prepares all legal documents in cooperation with the bank’s legal consultants and for settling other legal disputes of the bank if any.

The AOD has been structured according to the support it provides to the different business divisions as shown below:

1. SME Asset Ops

This segment deals with approved SME loan files for checking and disbursement. SME Asset Ops consist of four segments:

· Documentation team

This team receives approved SME loan files from SME unit offices as well as from SME head office and Credit department. Members of this team check these files to make sure that all the required documents and securities are in order. For any missing documents, the help desk team informs the respective Customer Relation officers (CRO). Files are delivered to Disbursement team after checking.

· Disbursement team

This team starts to work on the loan files if all the documents of the files are in order. They create the loan account, collect necessary charges and disburse the loan amount to the client’s account.

· Help Desk team

SME help desk deals with loan files that have some missing documents in them. All the CROs of BRAC bank all over Bangladesh makes their queries here for any type of assistance.

· Repayment Team

The repayment team collects repayment of SME loans. SME Asset Ops is also responsible for loan account closing, rescheduling, and issuance of No Liability Certificates of all SME loans.

2. Retail Asset Ops

Approved Retail loan files are received by this team for checking and disbursement. This team comprises of two segments:

Documentation Team

This team receives approved Retail loan files from our credit department, obtains CIB report from CIB team, and Checks files to make sure that all the required docs and securities are in order. If any documentation deficiency is found, respective Direct Sales Executives (DSE) or Branches are informed through our lotus mail.

Disbursement Team

This team receives files from the documentation team and disburses the loan after taking all necessary charges.

Retail Asset Ops is also responsible for loan account closing, rescheduling, renewal, enhancement and issuance of No Liability Certificate of Retail loans.

3. Corporate Asset Ops

The Corporate wing of AOD (Asset Operations Department) is serving the back office activities for the Corporate Division of the Bank. The structure of the department is formed according to the CRM (Credit Risk Manual). This wing has the following main functions:

· Checking the required documents of the loan takers.

· Sending all the documents to the legal advisers for verification

· Receiving the CIB report

· Disbursing the loan (account entries) and taking necessary charges

· Receiving the repayment and follow up ( accounting entries)

· Keeping the documents in safe custody

The facilities offered by corporate asset ops is f two categories: Funded facilities and Non Funded facilities.

4. Asset Monitoring and Control

The main responsibility of this team is to review and re-check all the loan files that were disbursed by SME, Retail, and Corporate Team to minimize our risk. Other tasks involve collecting CIB reports from Bangladesh Bank, internal and external audit compliances, preparation and submission of all reports to Bangladesh Bank, safe custody of loan files and securities and vault management. AMC is a combination of four teams:

• Post Disbursement Review Team
• CIB Team
• Vault Management Team
• Insurance Management Team

An Introduction to Bbl Credit Card

An Overview of Credit Card

Credit Card is an electronic based plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and pay for services with a credit facility and without cash/currency note transactions from the appointed merchants of issuer of the card and to obtain cash disbursements on credit, for which the card holder is subsequently billed by an issuer for repayment of credit extended at once or on an installment basis.

A credit card is a system of payment the issuer lends money to the consumer (or the user). A credit card is different from a debit card in that it does not remove money from the user’s account after every transaction. A credit card allows the consumer to ‘revolve’ their balance, at the cost of having interest charged every month. For consumers, credit cards are useful for those who need short-term financing. Whereas the debit card requires a person having a good bank balance whereby they can draw money, a credit card provides a line of credit which the client can as and when needed

Credit Card Application flow Chart

HOW A CREDIT CARD WORKS

The diagram (Figure 2) below gives an overview of how a credit card is used.

Figure 2

CREDIT VS DEBIT CARD

Today, credit card is not only a medium for short-term credit. People use credit card as a safety net in sudden needs. A strong argument against credit card is that anyone with a stable income can use a debit card which does not put the client at risk of credit. But a client may have a limited savings and in a sudden need of credit, they may have to apply for a bank loan which will take time for processing. On the other hand, if a client carries a credit card, they are given a line of credit which helps them to take credit facilities at any amount and as many times as needed. Also payment is under client’s control whereas for term loans the installment paid may be beyond his reach.

A debit card on the other hand gives a very limited exposure. A person may save a small portion every month and if he wants to purchase something now he may have to wait till he can save up enough. Also for example, while traveling abroad, a person who had planned out his expenditures may find he is in need of extra funds as his debit card has run out of his savings. At such times credit card can prove to be the most beneficial

PRODUCT TYPES

I. VISA Card Gold – Local

II. VISA Card Classic – Local

III. VISA Card Gold – Dual

II. VISA Card Classic – Dual

Both local Taka and Dual Currency Credit Card will provide cardholders with an unsecured revolving facility. Minimum and maximum credit limit will be Tk. 10,000 and Tk. 500,000 respectively. Approved credit limit shall in no instance exceed highest limit mentioned above.

A secured credit card called Quick Card (Local and international) will be also issued against lien over transaction accounts (Saving, FDR, Current, STD, Wage Earner’s Bond etc.)

Cardholder payments will be accepted at all the branches of BBL across the country. Manual payments towards the card account can be made through cash, Cheque and debit instruction. Payments will be automatically posted into the card account if Direct Debit facility is availed.

BIN LIST OF BRAC BANK

432146 Visa Classic (Silver) Local

432145 Visa Classic (Silver) Dual

432148 Visa Gold Local

432147 Visa Gold Dual

PRODUCT DESCRIPTION

Visa Local Classic: This is a local Visa Credit Card, which is valid only in Bangladesh. It can only be used in local currency (BDT) within the country. This type of credit card has a limit ranging from BDT 10,000 to BDT 74,999. This type of card has designed for medium earner category customers.

Visa Local Gold: This is also local Visa taka card of which acceptance jurisdiction only in Bangladesh and transaction currency is BDT. The differences between these two cards are higher credit limit than classic card. Credit limit of Visa Gold Card is ranging from BDT 75,000 to BDT 5, 00,000. This type of card has been designed for the higher earner category customers.

Visa Classic Dual: This is basically one plastic that has dual options to make transaction in two currencies. Its acceptance jurisdiction is in country and outside country in BDT and USD respectively. Classic dual is for the medium earner category customers. Its USD credit limit will be within approved BDT limit assigned for this category.

Visa Gold Dual: This is a high value dual card remaining other features same with classic dual. Gold dual is also for the higher earner category customers and its USD credit limit will be within approved BDT limit assigned for this category. A secured dual card’s limit will be maximum USD 30,000 against lien on RFCD or ERQ account.

As per customer request dual card will be offered to customers against his/her Travel Quota, Residence Foreign Currency Deposit (RFCD) account and Export Retention Quota (ERQ) account. Dual card can be used in local currency in country and foreign currency outside the country. Local currency limit and foreign currency limit will be defined in the system as per approved credit limit

Quick Card: A secured credit card named Quick Card will also be issued against lien over transaction accounts (Saving, Current, FDR, STD, Wage Earner’s Bond etc.). It is for the non earner category customer who does not have a regular income like, students, retired persons, etc.

Staff Card: This is only for the BBL permanent and contractual staffs with special facilities detailed in the product parameter. Staff card will be more secured than the customer card, as they will be maintaining an account with BBL. When a staff resigns from job then he/she can continue his/her BBL Credit Card as a normal customer Card with applicable fees and charges for customer. He/she has to submit the appointment letter or offer letter from the organization where he/she is joining.

Pre-Approved Card: This is not a special type of cards. Bank will offer all type of cards as appropriate to them those who have been maintaining satisfactory account relationship with BBL for long time. The considering factors for choosing them will be their transaction behavior, deposit balance and relationship etc. BM/BSM/CSM/RM will provide a list of potential customer from branches to Cards Credit to issue pre-approved credit card. They must obtain customers concern over phone/e-mail or verbal communication before forwarding the list to Cards Credit.

3.7 FEATURES OF BBL CREDIT CARD

BBL card is going to introduce photo sign card. Cardholder’s photo will be printed on the back of the card and specimen signature on the front of the card for security checking. It is both signature and PIN (Personal Identification Number) based card. Cardholder’s signature is verified during POS and manual transaction but PIN is required to access ATM for cash withdrawal. These cards are acceptable at manual and POS machine. All security sign and marks are maintained as per Visa rules.

ELIGIBILITY:

Any Bangladeshi or foreign citizen between 18 to 60 years who has a regular monthly income at least BDT 15,000.00 (BDT 7,500.00 for government employee) after tax are eligible for BBL credit card,

Minimum age: 21 years for primary card

18 years for supplementary card.

Maximum age: 60 years for any card. However it may be up to 80 years subject to waiver from competent authority. There is know age bar for secured (quick) card

Non Bangladeshi citizen should have a valid work permit. Their credit limit will be as per government permissible grid and based on foreign currency spending policy.

Primary Cardholder: An applicant who has a regular source of income applied for a credit card for his own will be the primary/base cardholder. Primary cardholder is solely liable to pay all the dues/outstanding amount of his/her credit card.

Supplementary Card: A primary cardholder may request for additional cards under the same agreement for his/her chosen persons is called supplementary card. A primary cardholder is entitled for maximum 3 supplementary cards. There is no Annual fee for the first supplementary card and from the next year it has waiver subject to 18 transactions (at least 10 POS transaction is mandatory) over the year. Primary card holder can allow any percentage of his/her limits of supplementary cardholder. It must confirm in written by the primary cardholder while applying for supplementary card. Primary cardholder is solely liable to pay all the dues/outstanding amount of supplementary card to the bank but supplementary cardholders may also pay the dues if they want to pay. But in that case he or she has to mention the basic cardholder’s credit care number on the payment slip.

CREDIT LIMIT: As per Bangladesh Bank prudential guideline credit limit has fixed as follows:

Minimum Credit Limit BDT 10,000.00 (Ten thousand only)

Maximum Credit Limit BDT 5, 00,000.00 (Five Lac only)

Cash advance Limit is 50% of approved credit limit for customer card

Cash advance Limit for BBL staff card is equivalent of total limit (i.e.100%)

Credit limit is assessed analyzing credit worthiness of the applicant according to his/her financial income and expenditure documents provided by the applicant.

STATEMENT:

A statement will be sent to the cardholder’s address either by courier or e-mail (e-statement) monthly basis free of cost. A cardholder may want to have his/her statement by both the way simultaneously on payment for any one as per our schedule of charge. The transactions details and dues amount will reflect in the statement. Moreover a statement contains the following information:

• Total outstanding amount
• Minimum payable amount
• Payment due date
• Total credit limit
• Available credit limit
• Available cash limit
• Reward points (proposed)
• Special message in brief

A cardholder may request for a duplicate statement on payment if necessary. Cardholder can stop sending statement if he/she desire. Local currency transactions and USD transactions will be shown in the statement. Transaction amount will identify by currency alphabetic code like for BDT transactions by BDT and USD transactions by USD. Two separate statements will be print for USD and BDT. Zero balance statement will not be sent to customers by any way.

PAYMENT:

Acardholder must pay his/her dues within the payment due date. Cardholder can pay in full or partial payment any time but it must be equivalent or above of minimum due amount. Cardholder has to pay at least the minimum amount due within the due date to avoid late payment penalty.

Mode of Payment

1. Payment by cash

2. Payment by BBL Cheque

3. Payment by non BBL Cheque (clearing & collection)

4. Payment by debit or A/C Trf instruction from BBL account

5. Payment by standing instruction (auto debit)

Channel of Payment

1. Payment through BBL branches

2. Payment through bills pay machine at BBL Kiosks

3. Bank POS at BBL branches

4. Through ATM

5. Through IVR

6. Through CDM (Cash Deposit Machine)

7. Through internet Banking Option

Minimum Payment Due: 5% of the total outstanding or BDT 500 which ever is higher. For USD payment 5% or USD 10 whichever is higher. Minimum due must has to pay within due date otherwise system will automatically charge a late payment fee as per schedule.

Interest Free Period: A cardholder will get maximum 50 days and minimum 20 days interest free period from current system subject to whether previous outstanding is Nil or not.

Payment Due Date: Payment due date is the 20^th day from the statement date. Cardholder will get privilege 20 days to pay his/her dues from current system.

Payment Grace Period: A cardholder will be allowed 2 days grace period for payment from the payment due date without penalty. Any payment will be made after the grace period system automatically charge a late payment fee as penalty and accrue interest on the outstanding amount. There will be no grace period in the new system.

Rate of Interest: If the cardholder makes partial payment from his current balance, interest will be calculated @30% p.a. on daily balance basis. This interest will be charged on monthly basis which will be appeared in the statement as financial charge. For balance transfer transaction interest rate will be 22%, for Card Cheque 27% for cash advance interest rate is 30% and for staff cards it will be 18% and on excess amount over the limit interest will be charged @35% on over limit amount from new system.

Cash Advance Facility: Cardholder can draw cash from ATM, POS (Cash back), and from Branch POS up to 50% of total limit. Cardholders will also be able to draw cash from both omnibus and Q-cash ATM network including any Visa ATM location in country with charge. Dual cardholders will be able to draw cash from abroad with charge. Interest will be charged from the day one in case of cash advance transactions. Cash advance limit for staff card will be 100%.

PIN: A personal Identification number is issued to every cardholder. PIN is a 4 digit numerical password used at ATM to withdraw cash. It’s cardholder’s responsibility to maintain secrecy of the PIN. Cardholder’s are advised not to keep the card and PIN together.

PIN Replacement: PIN may be replaced if the cardholder request for any security reason or could not remember. Cardholder has to pay scheduled PIN replacement fee for PIN replacement.

Card Activation: Now all embossed cards are sent to the cardholders prescribed address in deactivated status. After receiving cards in address, cardholders are required to call 24 hours phone banking to activate the card. After checking security details (Five dynamic questions like DOB, Mother Maiden Name, mailing address, Card limit, contact numbers etc) phone Banking Executive activated the card.

Over Limit: Generally the cardholder’s are not allowed to spend more than his/her approved limit for transaction. Over limit situation will arrive once the fee and charges are imposed based on outstanding, which will be close or equal to assigned limit. System will be parameterized accordingly.

Card Replacement: A card may be replaced if the cardholder request for replacement when the card is lost, stolen, missing, broken by the cardholder. Bank also may replace the card if the magnetic strip is unreadable, commit any fraud attempts or the card has broken only for frequent use free of cost.

Card Renewal: Card will be renewed automatically unless any written request received at least 30 days prior from cardholder for non-renewal. In some cases, renewed card may not be generated such as card has any type of block code at the time of renewal. Card which is 30 DPD will not be renewed.

Lost/Stolen Report and Replacement: Cardholder must inform/report to 24 hours phone banking or customer service (during office hour) immediately if the card is lost or stolen or miss placed when he/she will be noticed that the card is untraceable. This is cardholder’s responsibility to keep the card under his/her custody. The card is not transferable to any body. If the cardholder does not report to the bank cardholder will be solely liable for any transaction took place in-between. However cardholder will visit any BBL branch and give a written notice to block the card and must mention for a replacement card if he/she wants a new plastic.

CSA/CSO/Phone banking executives will definitely check security details of the cardholder (asking security related questions) and block the card if the CSA/CSO/Phone banking executives satisfied. They will also update the notes of lost/stolen report in CMS.

A Member must forward a Lost or Stolen Card Report to the Issuer within 48 hours after receipt of the Cardholder notification.

Card Close: The card may be closed by the bank for many reasons like the card is counterfeited, skimmed, doubtful transaction took place or the cardholder’s violation of agreement or for any regulatory reason. In case of delinquency the card will not be reinstated after 180 DPD on normal cases. Subject to credit comfort this card can be instated.

Emergency Card Replacement: If a cardholder requests an Emergency Replacement Card, the report must include both the address and telephone number where the Member may contact the cardholder during the following 2 business days.

Maintenance: Cardholder may request for any changes i.e. address change, contact number change, name correction, personal data correction etc. for any correction customer must give a written request to do it. CSA/CSO/Phone banking executives must perform positive ID checking before receiving any static data change related request. Cards ops will do the maintenance subject to CPV clearance within next 72 hours from the date of receive. In case of address change CPV is a must. Address change request come to operations from customer service only with a copy send to CPV unit of Cards Credit. CPV unit will return the request with CPV report with in 48 hours to Cards Operations of any area of the country.

Card up grade/down grade: Card may be up grade as per cardholder request. It is credit analyst’s discretion to upgrade a card from silver card to card and vise versa. It will be done if his income documents support to upgrade the card. A secured card may be up graded based on 90% LTV. Down grade is cardholder’s choice if they want it may down grade a card any time.

Authorization Services: A 24 hours phone banking and authorization center will support cardholders to make transaction smoothly. Every transaction needs authorization for the particular transaction amount. System will generate a 6 digit authorization code and provide online on request. Once the transaction is authorized the amount will be blocked and credit limit will be reduced accordingly. Incase of system outage/malfunction manual authorization will be provided. Forced authorization may be provided in case of emergency with appropriate DLA and clearance from credit department. Besides phone banking executives and customer service advisers will attend to any kind of card related services for the customers.

Settlement: Credit card transaction which took place outside the country in foreign currency will be settled through Visa network. JP Morgan Chase Bank NA is our settlement bank who transfers (Debit/Credit) funds to our Nostro Account with HSBC N.Y. USA. (A/c # 000141941) Local transactions accepted by other local Visa acquirers will be settled through Visa NNSS (National Net Settlement Services) Standard Chartered Bank Bangladesh is the settlement bank for NNSS. Transactions accepted by Q-cash network will be settled by local settlement bank (Trust Bank Limited)

Dispute: Any transaction dispute will beresolved with acquiring bank according to Visa Dispute Resolution Rules

Last Modified: Thursday Apr 23, 2009 – 16:51. Revision: 5. Release Date: Thursday Apr 23, 2009

CURRENT & UPCOMING PRODUCTS:

Universal Card (Dual Currency Card):

Universal Card is a unique credit facility where the customers will get a chance to use the Credit Card internationally. This facility will enable the customer to have an access to the amount of dollar limit set as per Bangladesh Bank’s regulation. This facility can be availed at Travel quota. Depending on customer’s need and Bangladesh Bank’s rules & regulation the limit of the universal card will be set. The credit risk of the product is covered by a strict evaluation and assessment of customer’s Credit history and track record. The limit under Travel quota will be maximum $1,000 (per Annum) for SAARC Countries and maximum $ 3,000 (per annum) for other countries.

Features:

1. You can use the Credit Card both inside and outside the country.
2. Customer will have both Taka limit and dollar limit in the same card.
3. Flexible Transferable limit.
4. Existing customers can convert to universal Credit Card with a minimum conversion fee.

Card Cheque:

Card Cheque is one of the value added service and also one of the most popular facilities for Credit Cardholders. Which facilitate the Credit Card customer to enjoy Cheque facility along with the Credit Card. Card Cheque can be used as a normal Cheque book.

Features:

Description	Regular Criteria
Target Group	The entire customers who are eligible for credit card
Product Type	Card Cheque
Applicant’s age	As per Credit Card
Card Cheque Limit	100 % available Credit limit of the customer
Interest Free Period	Minimum- 20 Days ] for existing system

Maximum-50 Days ] for exist