BB plans contingency network for banking during internet blackout
In light of the recent nationwide internet shutdown, the Bangladesh Bank is planning to create a contingency network or a backup networking system to ensure uninterrupted banking and financial services in case of future internet outages.
Bangladesh Bank Governor Abdur Rouf Talukder met with managing directors of several banks on Thursday to discuss how to maintain banking activities nationwide during an internet outage, Selim RF Hussain, chairman of the Association of Bankers Bangladesh (ABB) told reporters after the meeting.
"The banking sector needs to reduce its reliance on the internet for managing operations. We now require contingency or alternative solutions. The central bank has also been considering creating a separate infrastructure," said Selim, also the managing director of BRAC Bank.
"Currently, both social media and the banking sector depend on the same internet connection. This should not be the case. We will begin building a robust infrastructure for the banking sector," he added.
Another bank MD who was present at the meeting told TBS, "The central bank is considering launching an intra-network. If implemented, it will allow all internal bank transactions to be conducted without the Internet, although international transactions would still require connectivity."
"The central bank had considered introducing this system a few years ago, but it did not progress. Following disruptions in bank transactions due to recent internet shutdowns, the central bank has started revisiting this idea," he added.
At the press briefing, Selim RF Hussain also expressed optimism that the flow of remittances would return to normal, saying, "Many people are saying that expatriates will not send remittances, but I do not believe that is true. Expatriates will continue to send money back to the country."
"The nature of remittances is such that they will naturally fluctuate, sometimes increasing and sometimes decreasing. It is not appropriate to draw any definitive conclusions from just a few days of remittance data. Instead, we should analyse the trend over a few months," he added.
Remittance inflows reportedly dropped last week, with some attributing the decline to expatriate Bangladeshis expressing solidarity with student protests by halting money transfers in protest of recent clashes resulting in hundreds of deaths.
In addition to the MD of state-owned Sonali Bank, the meeting was attended by the MDs of private Dutch-Bangla Bank, City Bank, Eastern Bank, Mutual Trust Bank, BRAC Bank, Bank Asia, Prime Bank, and Trust Bank.
Selim RF Hussain said, "The governor asked us to assess the impact on the banking sector and share experiences we had during the bank and internet closures. We reported that there has not been significant damage to the banking sector's infrastructure during these days."
He also mentioned that the recent deaths of four bank employees during the clashes were discussed in the meeting.
Another bank MD present at the meeting said that cyber-attacks targeting 300 small banks in neighbouring India were reported and the central bank has advised all banks to remain vigilant about cybersecurity.