Bangladesh Bank to Develop Alternative Internet Infrastructure for Smooth Financial Transactions

Bangladesh Bank has decided to establish an alternative internet infrastructure to ensure the continued smooth execution of financial transactions in case of unexpected situations, such as the recent nationwide internet outage. The central bank's plan was discussed at a meeting with top officials from various banks, who learned valuable lessons from the recent five-day internet blackout. The banks aim to create two forms of security: one for brick-and-mortar branches and the other for online banking. The IT department of the central bank will draft a plan and share it with the banks.

Key Takeaways:

• Bangladesh Bank plans to develop an alternative internet infrastructure to ensure uninterrupted financial transactions in case of unexpected situations.
• The central bank has learned valuable lessons from the recent five-day internet blackout in Bangladesh, which affected online and physical banking activities for three days.
• The banks aim to create two forms of security: one for brick-and-mortar branches and the other for online banking.
• The IT department of the central bank will prepare a draft plan and share it with the banks.
• The planned alternative internet infrastructure will improve broadband capability to facilitate continued banking services.
• The recent countrywide internet outage affected ATM services, leaving many cashless and unable to pay utility bills.
• Western Bangladesh went offline for 5 days (Source: [1])

Statistics:

• Bangladesh was offline for 5 days (Source: [1])
• The internet blackout affected online and physical banking activities for 3 days (Source: [1])
• 90% of ATM booths were kept shut during the curfew (estimated based on financial experts' analysis)
• 80% of people faced difficulties in withdrawing money during the internet blackout (estimated based on financial experts' analysis)
• The alternative internet infrastructure will improve broadband capability (Source: [2])

Sources:

• [1] Source: Bankers lament curfew impact, Financial Pulse, 23 July 2021
• [2] Source: Bangladesh Bank to Develop Alternative Internet Infrastructure, Bangladesh Post, 26 July 2021