Dhaka, Bangladesh (BBN)- Bangladesh is going to enter a new era of payment through introduction of the national payment switch on Thursday aiming to facilitate inter-bank electronic payments, officials said on Wednesday.
The system will ease payments through different delivery channels including automated teller machine (ATM) cards, point of sales (POS), internet and mobile applications.
Under the payment system, clients will be able to withdraw cash, inquire about their account balance and get mini statements from the ATM booths initially.
“The central bank has planned to expedite e-commerce through expansion of the card-based payment networks substantially across the country,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
The BB official also said the national payment switch National Payment Switch Bangladesh (NPSB) would help reduce dependence on cash-based transactions.
The main objective of the NPSB is to create a common platform among the existing shared switches already built by different private sector operators.
Fifteen commercial banks and two third-party processors have been selected based on their necessary up-gradation and customization of existing switching solution to join the NPSB.
Of them, only two banks – Southeast Bank Limited and Pubali Bank Limited — have already completed their preparations to join the national payment gateway.
“Two banks have completed their testing on three types of transactions –ATM Cash Withdrawal, Balance Inquiry and Mini statement – successfully,” the central banker said, adding that the Dutch-Bangla Bank Limited and Eastern Bank Limited will join the system within a couple of days.
The central bank of Bangladesh has asked all commercial banks to upgrade or customize their own or third-party switching software according to its specifications (Host to Host) within the shortest possible time.
The BB issued a circular on Wednesday in this connection and asked the chief executive officers (CEOs) and managing directors (MDs) of all scheduled banks to take necessary measures to join the NPSB immediately.
BBN/SSR/AD-26Dec12-10:01 pm (BST)
