Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has updated its electronic funds transfer system that will come into effect from October 24 to facilitate business activities across the country.

Under the update system, payments will be settled within a day instead of the existing next day by using the updated Bangladesh Electronic Funds Transfer Network (BEFTN).

Currently, the corporate entities are able to pay their employees’ salaries, utility bills, IPO refund warrant, company dividend and other payments by using electronic funds transfer network without cheques.

The central bank issued a circular in this connection on Tuesday, and asked the managing directors and chief executive officers of all scheduled banks for taking necessary preparations for implementation of the latest applications.

Talking to the BBN, a senior official of the Bangladesh Bank (BB) said the central bank has updated its clearing house applications to facilitate the overall business activities as well as to boost the economy.

Such payment and settlement system will help the banks to automate and digitise their functionalities, he said, adding that customers will be eligible to use funds on t+0 instead of the existing t+1 as per the updated payment system.

The Bangladesh Automated Clearing House (BACH), the automated payment systems platform, has two components – the Bangladesh Automated Cheque Processing Systems (BACPS) and the BEFTN.