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View with images and charts 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. Paid-up Capital of BRAC Bank Limited

IFC 19% Shore Cap Int’l Ltd 18%

Others 0% BRAC 63%

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 knowledgebased 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 Base recognition and reward on performance

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

decisions

based

on

merit

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 Officer Rais Head of Secretary

Risk

Uddin Management

&

Ahmad Saifuddin M. Company Head of Retail Banking

Naser


Mohd. Rafat Head of Credit

Ullah

Tahniyat Ahmed Head of Human Resources

Naushad Hussain Head of Secured Remittance Service Karim Faruk Ahammad Head of Financial Administration Khan

Farzana Chowdhury Md. Rahmat Head of Small & Medium Enterprise (SME) Head of Treasury Khwaja Head of Corporate Banking

Pasha

Shahriar Shah Alam Bhuiyan Head of Asset Operations

Mizanur 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 Mr. Muhammad A. (RUMEE) ALI (Nominated By Shorecap International (Nominated by BRAC), Director Limited), Director Mr. Quazi Md. Shariful Ala Mr. Imran Rahman, (Nominated by BRAC), Director 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 belowWhen 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:

Customer Relation Officer

Asset Operation

SME Business Division

SME Credit

Final Loan Approval

B. Corporate Banking Categories- the facilities our corporate Division offers to our customers are mainly of twoFunded 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 areWorking 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 understandingRelationship Manager

Big sanction

Corporate Head

Credit Manager

MD/Executive Committee

Final Loan Approval

Credit Committee

Small sanction

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. 3. 5. 7. 9.

Car Loan. Secured Loan/OD. Top Up Loan. Study Loan. Now Loan.

2. Doctor’s Loan. 4. High Flyer Loan. 6. Credit Card Loan. 8. Teacher’s Loan. 10. Salary Loan.

Process Flow of Retail Loan Branch/ Sales Officer

Retail Business Division

Asset Operation

Credit Manager

Final Loan Approval

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) ii)

Deposit Products Lending Products

iii)

Locker Services

iv)

Remittance Services etc.

The product and services that are currently available are given belowI) 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: Loan Product

Secured Facility (Which is backed by 100% Cash Covered/ other security) Secured Loan Secured Overdraft

Partly Secured Facility (This is partly secured by cash) Life Style Loan Professional Loan

Unsecured Facility Instant Cash Credit Card Loan Teachers’ Loan High Flyer Loan Now Loan Salary Loan


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 1101 1102 1103 1301 1501 1502 1503 1504 1505 1513 1514 1515

Branch Agrabad Mominroad Halishahar Branch Comilla Branch Gulshan Nawabpur Moghbazar Keranigonj Motijhil Motijhil - Graphics Shaymoly Tongi

Capital Fund

Code 1506 1507 1508 1509 1510 1511 1512 1801 2401 1516 4401 1401

Branch Dhanmondi Banani Ganakbari Satmosjid Uttara Mirpur Rampura Sona Gazi Jessore Branch Dohar Monohardi Cox’s Bazar

Code 4301 5501 6301 6302 6303 6304 6305 6306 1104 7101 501 701

Branch Narayanganj Rajshahi Branch Shlhet Biani Bazar Zinda Bazar Bishwanath Maulivi Bazar Nobiganj CDA AVE BR Potiya Borisal Bogra


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:


SME, Retail, Corporate Applies

Business

Client

Disburses

Recommendations

Credit

Asset Operations

Approves

Last frontier Docs checking, disbursement of loans, & custody of securities

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 • 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.

Custodian and Compliance • 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: Asset Operations Department

SME Asset Ops

Retail Asset Ops

Corporate Asset Ops

Asset Monitoring & Control

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 Customer

Direct sales

Branch/Walk in/ CSA

Tele sales/ Corporate

Credit /RFC (MIS)

CPV Agents

Credit Analyst

Approved /Declined or Send Back to Source

Manager/Senior Manager / Credit Card Application flow Chart Head of Retail Finance

Approved

Declined

Reviewed By Sales/Branch

Archive of all files

Reviewed By Credit

Card Ops Check and Card Production

CS of Branch/Cards/ Courier


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 432145 432148 432147

Visa Classic (Silver) Local Visa Classic (Silver) Dual Visa Gold Local 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 (estatement) 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: A cardholder 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 be resolved 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


Description Applicant’s age Card Cheque Limit Interest Free Period

Interest Rate Interest Accrual Interest Application No of Cheque leaves Cheque book Fee Cheque book status Cheque book Delivery Cheque book Activation Processing fee Issue of Cheque Required documents processing

Regular Criteria As per Credit Card 100 % available Credit limit of the customer Minimum- 20 Days ] for existing system Maximum-50 Days ] for existing system Minimum- 15 Days ] for new system Maximum-45 Days ] for new system 27% interest rate. On daily average balance Monthly from transaction date 1st Cheque book consist of 5 leaves Is free (only new issuance). 12/25 leaves per Cheque. BDT 150 + VAT for 12 Leaves BDT 250 +VAT for 25 leaves Will be in inactive status Through Courier. Will be activated while delivering or over phone through phone banking after positive ID checking 1.5% of withdrawal amount or BDT 100 + VAT whichever is higher. No Cash, by account payee to any account except credit card holders own account. for Applicant have to submit a complete Card Cheque application form

CREDIT CARD REWARD POINTS: The purpose of this program is to increase retail spending of BRAC Bank credit cardholders. Cardholders will accumulate bonus Points for their retail purchases made at any merchant establishment. The bonus points will keep on accumulating with retail purchases and the cardholder will be able to redeem the bonus points for various kinds of gift and shopping vouchers. Features: a) Bonus Point: Retail spending of Tk 50 (fifty) will earn 1 (one) bonus point. Bonus point will not earn for transactions made using Card Cheque, Cash advance and Balance Transfer. Bonus points will keep on accumulating with retail purchases till the validity of this program. b) Transaction Type: Retail purchases of both primary and supplementary cardholders will earn bonus points. Retail purchase reversals will also be considered. Bonus Points will be awarded based on the net retail purchase amount. c) Redemption: A total of 74 gift and shopping vouchers under 14 different categories will be made available for redemption. Redemption of any item will be as per the point requirements as given in the Rewards Catalogue. A minimum of 500 bonus points will be required for redemption.


d) Eligibility: All BBL Visa Credit Cardholders are eligible to participate in this program for locally purchase only. Bonus Point will be applicable for local taka purchase only. Universal Card purchase transaction under USD limit in Bangladesh will not eligible / consider for Bonus Point accumulation. However, BBL Visa Debit Cardholders are not allowed. Only primary cardholders are eligible for redemption for both primary and supplementary card. e)

Enrolment: All existing primary (eligible) cardholders will be automatically enrolled into the program during the product launch in live. The existing cardholders will not get any bonus point on the previous balance (pre launching outstanding). This will, however, be done for all active cards accounts (in Card system). New cardholders will automatically enroll, as their card accounts will be generated (in Card system).

f)

Validity: All reward items contained in the catalogue will be available for redemption for a period of 12 months starting from January 1, 2009. However, at any point in time the existing Rewards Catalogue shall be in force before a new one is circulated amongst the cardholders. This program shall continue to operate for an indefinite period, if not terminated by BBL.

Process Flow of Reward Program: a) Bonus Account Creation: All existing cardholders will automatically subscribe to this program when it is launched. For new card accounts, the program will automatically generate for bonus points accumulate. For supplementary cards, the bonus account of the primary card will be applicable. b) Bonus Points Accumulation: For each retail transaction, the cardholder’s bonus account will be auto credited with Bonus Points based on the Rewards Calculation Model (1 Bonus Point = Tk. 50). For example, if a cardholder makes a retail transaction (takes place at merchant points/outlets for payment of goods purchased and service provided to him/her) of Tk. 5,000 he/she will earn 100 Bonus Points. This program will be applicable to both primary and supplementary card transactions and only for retail purchases. Not for Cash advance/Card Cheque transactions. However the bonus point accumulation may vary depending on the types of products. c) Bonus Points on Statements: A Rewards Catalogue will be sent to the cardholders along with their credit card statements as per billing date of each month. This would contain details of the shopping and gift vouchers of different merchants along with their corresponding number of bonus points required for redemption. The catalogue will also contain perforated Rewards coupons to be used for the redemption of bonus points. The Bonus Point details will be shown on the cardholders’ monthly statements as a text message. d) Request for Redemption: Cardholder can request for redemption of bonus points either by filling out the Rewards Coupon provided in the Rewards Catalogue and sending it to Card Services or by calling up Cards Customer Service (24/7 Phone Banking) and logging the request. The Phone Banking staff will verify the cardholder’s identity and check for available bonus points on the card account in the system. If the required number of bonus point is available, the staff of Phone Banking will fill up a Rewards Redemption Form and send it to Card Operations for processing. In future cardholder can also request bonus point redemption through Online / Internet banking (subject to available of internet banking facility).


e) Bonus Points Redemption: Card Operations will debit the required bonus points from the cardholder’s bonus account and send the signed Rewards Redemption Form to Cards Customer Service for making necessary arrangements to deliver the reward to the Cardholder(s). f) Rewards Redemption Authorization: Department of Cards Merchant Acquiring of the bank has made prior arrangements with the participating merchants and has signed up Supplemental Merchant Agreements for delivery of the rewards. Cards Customer Service will send a Rewards Redemption Voucher signed and authorized by them to the cardholder’s billing address advising him/her to personally collect the reward from a selected merchant, named in the Reward Redemption Voucher. At the same time, they will issue a letter to the merchant with a copy of the Rewards Redemption Voucher sent to the cardholder requesting delivery of the reward. g) Rewards collection process from Merchant: The cardholder will present the Rewards Redemption Voucher to the designated merchant together with his/her Credit Card and sign an acknowledgement part for the REWARD. The merchant will verify the details including card number and cardholder’s name with the copy of the voucher sent to the merchant by the Bank and get the acknowledgement part duly signed by the cardholder. The merchant will also match the cardholder’s signature on the voucher with that of on the back of the Credit Card and then delivery the Reward to the cardholder. Cardholder has to redeem the reward from merchant within 30 days from the date on which the bank sends the voucher to the cardholder. In case of to redeem the voucher from the merchant within the time line, the cardholder’s right to redeem the reward becomes void. However Head of Cards can make exception on this. h) Merchant’s Claim for Reimbursement: The merchant will then claim the reward reimbursement from the Bank by submitting the Rewards Redemption Voucher and Card Operations will credit the value of reward to the merchant’s account maintained with the Bank. i) Bonus Points Expiry: The bonus Points do not expire with card closure (or for certain block codes). So, it will be stated in the Terms & Conditions that Rewards cannot be stopped because of closer or stop of operation of cards if any. The cardholder will not be allowed to avail the reward until his/her card account(s) is regularized. If required, the bonus points can be manually erased/deleted for accounts, which are closed or charged-off. Card Ops will manually set all accumulated bonus points to zero on such accounts. j) Bonus point for irregular card: For card with irregular payment history (edging 2 and above for last six months) the bank shall have the right to forfeit the accumulated bonus points and not be liable to allow any reward on such irregular cardholder. However Head of Cards can make exception on this. k) Risk Factor: Primary Credit Cardholders wouldn’t be able to redeem the bonus point immediately before monthly statement. Also not possible for us to see the immediate accumulate bonus point on the inquiry screen of card system. So there is a chance of misunderstand from Cardholders point of view. At the same time there is a chance of financial loss from bank point of view if we allow Cardholders to redeem the point upfront due to unsettled transaction as well as future dispute. We are proposing to do the redemption after getting monthly statement.


Last Modified: Thursday Jun 4, 2009 - 09:56. Revision: 6. Release Date: Wednesday Jun 3, 2009 - 18:00. 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. e-Statement: E-Statement is electronic statements deliver service for credit card customers. This is a fast, reliable and efficient service, which aims not only to significantly reduce our costs involved in printing and mailing of statements but also to increase customer convenience. The e-statement option also includes a special module which BRAC Bank Card marketing will use to send promotional message, campaign announcements, revision in fees/charges and other communications like birthday wishes, marriage wishes etc. with attachments to all subscribers of e-statements on daily basis. Features: • E--Statements are absolutely free-Our cardholder will get free e-statement after enrollment. • Multiple e-mail address- There will be three (3) mailing option available for the Cardholder. E-statement will be sent to all three mailing address provided by the Cardholder. • Multiple statement option – Now a customer can avail both e-statement and printed statement if he/she wishes. But for each printed statement those cardholder who subscribes for e-statement has to pay BDT 50.00+VAT. • Security Code- To avoid any discrepancy a security code has incorporated in e-statement that will prevent any modification or alteration make in the statement by the cardholder. •

Balance Transfer: Balance transfer is widely used facility provided by different banks to create convenience for the cardholder, through this option a cardholder can easily transfer his/her other bank’s card outstanding to BRAC bank Credit Card account. This will be treated as retail purchase and cardholder will be able to transfer the amount at a reduced interest rate. Balance Transfer Fee: 2% or 150 whichever is higher (+VAT); any change in the fee to be approved by HORB. Interest Rate: 22% on net balance from billing date; any change in the interest rate to be approved by HORB. Eligibility for availing Balance Transfer Facility: • Maximum Two (2) X-DPD within last seven (7) months can apply for Balance Transfer facility, no consecutive X-DPD will be allowed.


• •

Maximum one (1) over limit charges within the last six (6) months. Although customer has no late payment, there should be at least one (1) payment reflection in the statement. • Salaried Person – Job length should be at least one year. • For corporate offer at least 6 month job length is required for salaried person. • Businessmen / Self-employed: Minimum 2 years of work experience Credit Shield: Credit Shield program of BRAC bank Limited is a precious insurance benefit, protecting the cardholder from the setbacks brought about by any accidental death. With credit Shield program of BRAC bank Credit Card cardholder can easily protect her / him and enjoy total peace of mind for as little as 30 Paisa for every TK.100.00+Vat of ones Credit Card Outstanding balance for existing system. We will charge 0.35% on total outstanding of last statement cycle for bank outstanding payoff and equal amount pay off to the nominee including all accidental death coverage. Equal amount hand over to the nominee once new contact in place with the Insurance Company. Schedule of Charges for Credit Card Gold Card

Silver Card

Annual Fee for Primary Card Local

TK.2500.00+VA TK.1300.00+VAT T

Universal Card Supplementary Card First Supplementary Card (Local)

Free

Second Supplementary Card and onward (Local)TK. 600.00+VAT Universal Card First Supplementary Card Second Supplementary (Maximum 3)

Free Card

and

onward

TK. 600.00+VAT

Card Replacement Local Universal Card

Tk. 500.00+VATTk. 350.00+VAT

Plastic Fee Local Universal Card Cash Advance Fee (on withdrawal amount)

Tk. 100.00 + VAT


Local

(2% or Tk. 150)+VAT which ever is higher

Universal Card

(3% or USD 5.00)+VAT which ever is higher

Cash Advance of Credit Limit Local Universal Card

50%

Late Payment Charges Local (if Minimum due is not paid within due Tk. 500.00+VATTk. 350.00+VAT date) Universal Card (if Minimum due is not paid USD 15.00+VAT within due date) Over Limit Charges Local

Tk. 500.00+VATTk. 350.00+VAT

Universal Card

USD 10.00+VAT

Return Cheque Local

Tk. 500.00+VAT

Universal Card

USD 10.00+VAT

Duplicate Statement Local Universal Card

Tk. 100.00+VAT

Copy of Sales Voucher Local (Up to a maximum of 3 Months Inside the Tk. 250.00+VAT country) Universal Card (Up to a maximum of 3 Months USD 10.00+VAT out side the country) Certificate Charges Local Universal Card

Tk. 200.00+VAT

Payment Due Date from Statement Date Local International

20 Days


Minimum Amount Due Local

5% or Tk. 500.00 Whichever is higher

Universal Card

5% or USD 10.00 Whichever is higher

Card Cheque Processing Fee Local

(1.5% or Tk. 100.00)+VAT whichever is higher

Universal Card Balance Transfer

(2% or Tk. 150.00)+VAT which ever is higher

Balance Transfer Fee E-statement E-statement Printed Statement subscribers)

Free (Only

for

e-statement Tk. 50.00+VAT for each statement

SMS Service

Free

Transaction Alert Service

Tk. 5.00+VAT monthly

Credit Shield

.35%+VAT of the statement balance as at the statement date

Card Cheque Fee 1st Card Cheque Book

Free

Card Cheque -12 Leaves

TK. 150.00+VAT

Card Cheque -25 Leaves

TK. 250.00+VAT

Note: •

• • • •

Annual fee will be waived for both primary and supplementary card from the second year onward if total number of transaction is 18 or above over the year (Minimum10 POS retail transactions are mandatory in this respect). First year annual fee is mandatory for primary card. No finance charge (excluding for cash advance) will be levied in case of 100% payment of current balance on or before the payment due date. For any enquiries on interest rate, fees, charges, etc please call us – 01819230000 All Fees and charges mentioned in this schedule are subject to change without notice. No refund of annual fees will be available if the card is terminated.


• • • • • • • •

Charges, fees, etc listed in this schedule are applicable for BRAC Bank Credit Card. Additional expenses, e.g. postage, cable currier, Fax, legal fee etc will be charged for where included. Charges for service not included in this schedule are available on request. 15% VAT applicable on all fees and charges. Automatic enrollment will be made in case of SMS and Transaction Alert service. Special promotional offers/packages are not applicable for the above schedule of charges. These are subject to change as per Bank policy /regulatory guideline etc. anytime with or without the prior intimation to the customer. Free replacement of Card will be made up on the basis of pre noticed visit of VISA & Master Card risky countries, which are subject to change as per Visa and MasterCard policy and guideline. Last Modified: Thursday Apr 23, 2009 - 17:10. Revision: 2. Release Date: Thru

SOME IMPORTANT ISSUES: • Existing Customer Proposition: Existing customer can convert to Universal Card with a minimum Conversion fee BDT 500+VAT for Classic Customer and BDT 1000+VAT for Gold Customer. For BBL Staff Conversion is free. •

The limit of Universal Credit Card is a single limit i.e. the dollar limit will be set in a way so that it won’t exceed the BDT Limit. One can set one’s preference regarding the dollar limit as well as local limit. Usually it will be set as local limit 100% of total limit and dollar limit will be enhanced according to the request as well as the regulation of Bangladesh Bank. Credit will assess the application, approved a limit that will be assigned as BDT Limit with a USD limit subject to available BDT limit and passport endorsement.

The credit card repayment will be made on BDT that will be converted in to Dollar @ selling rate of TT/OD.

As according to the regulation of Bangladesh Bank a cardholder can’t hold more than one international/dual currency card, so those who have other bank’s dual currency card or international card can’t be eligible for Universal card if they are not interested to close them before applied for universal card, only if the cardholder transfer the full outstanding of other banks dual card to universal card then he/she will get an Universal card. A declaration is mandatory from the customer whether he/she has other bank’s dual/international card.

C. Migration/Conversion of existing Credit Card to Universal Credit Card: (Customer can request for migration /Conversion request through Branch as well as through Phone banking) Step -1 Branch CSA will receive & verify the following documents and send to customer service:


1.

Filled up Customer Request Form

2.

Previous Card return

3.

1 Copy of Photograph

4.

Signature check

5.

Card Cheque (If customer return exiting card cheque book, he/she will get 5 leaves card Cheque Book free)

6.

Payment miss within Last 12 Months (If more than 2 payment miss inform customer to pay full outstanding first than request for migration)

Step -2 Customer service will receive & check the following items and send to Cards Operations: 1.

Card status (Customer service will block the card)

2.

Payment misses within Last 12 Months (If. 2 payment miss sent to Credit.)

3.

Photo & Signature check

4.

State Migration fee on the customer request form

5.

Instruct card operations for new 5 leaves Card Cheque book free

6. Customer request form must be verified by customer service Officer with seal & signature NB: If customer service receives any request form customer directly then customer service will go through the entire procedure as mention in step –1. Step -3 Cards operations will receive complete customer request form of Universal Card Migration then check and execute the following activities: 1. Customer document checking (Incomplete request form will sent back to source) 2. Close Previous Card 3. Do CPV for any change in customer address (No CPV require for BBL staff) 4. Do data entry and set duel currency credit limit (BDT full limit of existing card, USD zero limit) 5. Change billing cycle (For customer 22 and BBL staff 13) 6. Photo & Signature scan and upload 7. Outstanding transfer from old card to new card 8. Charge Migration fees 9. Issue Card Cheque Book 10.

Emboss Card


11.

Deliver Card and Cheque Book to customer

NB: Without CPV card will be delivered within 3 working days and with CPV card will be delivered within 5 working days from the receiving day by card operations. ENDORSEMENT PROCEDURE: CSA or authorized person in absence of CSA will be nominated by Head of Cards who will endorse USD on Cardholder’s passport against dual card as per government permitted quota. Their specimen signatures will be attached below which will be verified by the respective authorized person. For ensuring undisrupted endorsement service following steps has follow by the branches. 1. Both the nominated officers from the branch should not go on leave at a time 2. Both the nominated officers could not be transferred at a time. If any one of them transfer from branch must inform Cards Customer Service copy to Head of Cards immediately. Replaced officers specimen signature must send to respective ends by verifying by the authorized person. 3. Nominated officers must put their full signature during endorsement. Initial is not permitted for endorsement. 4. A table consists of the specimen name signature and branch name will be circulated in to all BBL branches through mail. In case of transfer such announcement must be made and circulated by Head of Cards through mail. Pay Flex Plan: Pay Flex is an installment plan that allows cardholder the flexibility to convert any retail purchase transaction into an installment scheme where the cardholder pays back the amount at a low rate of interest per annum over a tenor ranging from 6 months to 36 months. The customer enjoys the flexibility to buy high value items on BRAC Bank credit card and conveniently pay in monthly installments at a lower interest rate. There will be a minimum transaction amount for the eligibility of Pay Flex. Features and Benefits: •

Ability to make high volume purchases at a lower interest rate

No further credit approval or documents required

Convenience to payback in 6, 12, 18, 24 or 36 months or installments.

Rewards points earned on all Pay Flex transactions

Terms and conditions: The Pay Flex is flexible in terms of: 1. Products Covered: All Taka credit cards of BARC Bank are eligible for Pay Flex. 2. Transaction: Any retail transaction with a predetermine amount or above can be transferred to the Pay Flex scheme.


3. Tenor/Payment Options: The cardholder can pay back the amount over a period ranging from 6 months to 36 months, depending on his preference. The Pay Flex Payment options are 6,12,18,24 or 36 months. 4. Enrollment Fee: No opening fee/joining fee will be charged for Pay Flex. 5. Interest Rate: The interest rate on Pay Flex will be a lower interest rate compared to regular 30% per annum. The effective rate will vary according to the tenor. 6. Number of Installment: The Pay Flex transaction amounts are capped at the cardholder’s limit level and there are no restrictions on the number of installment schemes that a cardholder can avail of as long as each transaction amount is equal to or above the predetermined amount. 7. Simple: The cardholder need not fill in any forms to avail of this scheme. The cardholder only needs to call the Phone banking or customer service and provide details of the amount/transaction. Alternatively, he can choose to fill out the Pay Flex Application Form and send it to Card customer service. 8. Pre-closure: The cardholder has the option of early settlement of the Installment Loan amount provided that he pays a certain amount of preclosure fee on the transfer amount. 9. Delinquency Level and Auto-cancellation: Pay Flex facility will cancel automatically when the credit card account reaches 120 DPD (arrears level) and the entire loan amount will get transferred to the card account and become fully due. Process: Cardholder performs a transaction at any merchant outlet. The transaction is posted to the credit card account. Cardholder calls Cards Call Center to transfer the transaction to Pay Flex. Cards Call Center staff performs the necessary ID checks to verify identity of the primary cardholder. Cards Call Center staff checks for following criteria before proceeding to the next stage: • •

Transaction has been posted or still remains as authorized Card is valid at the time of the call

Not delinquent at the time of the call i.e. not in Age Code 1 or beyond

Not statuses at the time of the call

Not been in Age code 2 twice in the past 12 months

Not over limit at the time of the call

The transaction amount is equal or above the predetermine transaction amount


If the above conditions have been met, the Call Center staff logs the request and fills out a Pay Flex form. The Pay Flex form is verified by the Cards Customer Service Manager or designated person and then forwarded to Card Operations to transfer the transaction amount into Pay Flex Plan. The back-office staff in Card Operations uses the necessary expert codes to transfer the amount, as requested by the cardholder, to Pay Flex. CHAPTER 4 ANALYSIS AND FINDINGS OF THE STUDY Total 85 samples were selected for survey. Among them 27 were female and 58 were male. All are BRAC banks corporate clients. The total analysis of their responses to the survey questionnaire are given bellow: Are you satisfied with your banks disbursement processing time?

Valid yes no

Frequency Percent

Cumulative Valid Percent Percent

35

41.2

41.2

41.2

50

58.8

58.8

100.0

100.0

100.0

Total 85

According to the frequency table the result shows that most of the consumers are not satisfied with the banks credit disbursement time. Among the total respondents 58.8% are not satisfied and 41.2% are satisfied. This result is also shown in the following pie-chart:

BRAC Banks credit card holders get the facility to enjoy Self set credit limit of their Credit Card. Consumers perception about this attribute is measured in in following frequency table:


Are you satisfied with your credit limit?

Valid yes no

Frequency Percent

Cumulative Valid Percent Percent

58

68.2

68.2

68.2

27

31.8

31.8

100.0

100.0

100.0

Total 85

According to the frequency table the result shows that most of the consumers are satisfied with their Credit Limit. Among the total respondents 68.2% are not satisfied and 31.8% are not satisfied. So it can be said that the Credit limit offering of BBL is satisfactory. This result is also shown in the following pie-chart

For various purposes Customers can use more than one card. A question was asked to Measure the percentage of customers using more than one card. Do you use more than a card?

Valid yes no

Frequency Percent

Cumulative Valid Percent Percent

52

61.2

61.2

61.2

33

38.8

38.8

100.0

100.0

100.0

Total 85

According to the frequency table the result shows that most of the consumers have more than one card. Among the total respondents 61.2% is using credit card of other offering Banks beside BBL’s Credit Card. And Only 38.8% respondent said that they are using only BBL’s Credit card. So it can be said that maximum Credit Card users


are enjoying credit card facilities of other Banks. This result is also shown in the following pie-chart

Customers always want to enjoy the greatest facility. Statistics showed that maximum credit card users are using more than one card. Questions were asked to find out the possible reasons for using more than one card. According to the responses the result is following: Why do you prefer more than one card?

Valid

Frequenc y Percent

Valid Cumulative Percent Percent

To utilize the complementary benefit of 41 different Banks

48.2

48.2

48.2

To strengthen the relationship with the 6 issuing bank

7.1

7.1

55.3

To compare the service

15

17.6

17.6

72.9

to gain more prestige

2

2.4

2.4

75.3

Given as office staff card

13

15.3

15.3

90.6

Other reasons

8

9.4

9.4

100.0

Total

85

100.0

100.0

According to the frequency table the result shows among the total respondents 48.2% is using more than one card of other offering Banks beside BBL’s Card too utilize the complementary benefit of different Banks, 17.6% are using to compare the service, 15.3% are using as it was given as office staff card. 9.4% are using for other reasons, 7.1% are using to strengthen the relationship with the issueing banks and only 2% are using it to gain more prestige. This result is also shown in the following pie-chart:


Respondent were asked question to measure their satisfaction level about customer service compared to other Banks. Findings are as follow: Customer service compared to other banks

Frequency Percent

Cumulative Valid Percent Percent

5

5.9

5.9

5.9

Satisfied

13

15.3

15.3

21.2

Indifferent

34

40.0

40.0

61.2

Dissatisfied

23

27.1

27.1

88.2

Very dissatisfied

10

11.8

11.8

100.0

Total

85

100.0

100.0

Valid Very satisfied

Most of the responses resulting 40% to the above question was indifferent, 27.1% said that they are dissatisfied, only 15.3% are satisfied, 11.8% are very dissatisfied and finally only 5.9% of small respondent group are very satisfied. This result is also shown in the following pie-chart:


The responses for overall satisfaction level regarding credit card service are as follows: What is the overall level of satisfaction regarding your credit card service?

Frequency Percent

Cumulative Valid Percent Percent

14

16.5

16.5

16.5

Satisfied

42

49.4

49.4

65.9

Indifferent

7

8.2

8.2

74.1

Dissatisfied

18

21.2

21.2

95.3

Very dissatisfied

4

4.7

4.7

100.0

Valid Very satisfied

Total 85 100.0 100.0 The analysis shows that most of the consumers resulting 49.4% are satisfied, 21.2% are dissatisfied, 16.5% are very satisfied, 8.2% are indifferent and 4.7% are very dissatisfied. This result is also shown in the following pie-chart: As the respondent is All BRAC Banks corporate clients of credit card, they are enjoying the facility of 100% Annual fees waiver their responses are following: Annual fees

Frequency Percent

Cumulative Valid Percent Percent

Valid Very satisfied 48

56.5

56.5

56.5

Satisfied

37

43.5

43.5

100.0

Total

85

100.0

100.0

According to the frequency table the result shows that most of the consumers are very satisfied with their Credit Annual fees . Among the total respondents 56.5% are very satisfied and 43.5% are satisfied. So it can be said that the Corporate clients are enjoying this facility. This result is also shown in the following pie-chart:


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Credit Card Satisfaction of Brac Bank  

Credit Card Satisfaction of Brac Bank  

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