"Based on a decision made in the Money and Credit Council, those willing to set up electronic banks could do so with a total capital of 70 million dollars after receiving the necessary license from the Central Bank of Iran," Hamid Pour Mohammadi told Mehr News Agency yesterday.
The official said that establishment of electronic banks is a great step forward in the Economic Ministry's efforts to boost electronic banking in the country.
Appropriate customer services, reduced banking costs, easy access and transactions of high-value money are among the advantages offered by electronic banks, according to the deputy minister.
Pour-Mohammadi struck an optimistic note when asked if the electronic banks would win popularity in a country where the traditional banking services are still widespread. "I predict that the e-banking activities will enjoy great popular appeal. We are planning to establish more sophisticated financial institutions in the near future."
The needed 70 million dollar initial capital for the opening of each electronic bank as approved by the Money ad Credit Council compares with 200 million dollars required to establish a private bank in the country.
The Islamic Republic has launched a massive modernization program in its banking system over the past few years, which is set to bestow a greater role to electronic and private banking in a country of almost 70 million.