In a bid to facilitate digital payments and increase financial inclusion, banks will now be able to provide services in remote areas that do not have branches.
A trilateral Memorandum of Understanding (MoU) signed between Da Afghanistan Bank (DAB), Afghan Post, and Afghanistan Banking Association, is expanding banking services across the country.
Based on the MoU, banks would be able to provide banking services in areas where they do not have branches, by using the Afghan Post’s branches as bank agents.
Afghan Post, which is a state-owned enterprise, has over 450 branches throughout the country.
The MoU allows banks to have “branches” across Afghanistan and allows loan applications and provisions.
It will also make it easier for schools to pay teachers who are in their home provinces due to the COVID-19 pandemic.
