Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has issued two regulations aiming to promote, regulate and ensure a secure and efficient payment system in Bangladesh through minimising operational risks.
The regulations – Bangladesh Payment and Settlement Systems Regulations-2014 and Regulations on Electronic Fund Transfer-2014 – will help establish a safe, sound and efficient payment system in Bangladesh, according to officials of the central bank.
“We expect it will also help strengthen the ongoing financial inclusion programme through the country’s modernising payment system,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
Under the new regulations, payment system operators (PSOs) and payment service providers (PSPs) will have to take licences from the central bank of Bangladesh to run their businesses properly.
The PSPs like bKash and post office will retain electronic records of transactions for 12 years from the date of their completion, according to the regulations, issued by the BB on Thursday.
The regulations will come into force with immediate effect and supersede the Bangladesh Payment and Settlement System Regulations, 2009.
The central bank will have the jurisdiction to grant PSO and PSP licences for operation of payment systems and payment services in Bangladesh.
The banks and non-banking financial institutions (NBFIs) maintaining accounts with the central bank for meeting cash reserve requirement (CRR) are not required to obtain a new licence as a payment service provider but they are required to comply with the instructions and reporting requirements set by the BB, and will be subject to oversight requirements for licensed entities under the regulations.
“They shall in any event be required to obtain a licence for the operation of Payment Systems and the provision of Payment Services,” the BB noted.
BBN/SSR/AD-16May14-12:37 pm (BST)