Dhaka, Bangladesh (BBN) - The central bank of Bangladesh is going to introduce the automated clearing house from early November this year to facilitate business activities, officials said on Tuesday.
Under the new system, payments will be settled using automated check clearing system and electronic fund transfer among 1050 bank branches in the capital, Dhaka initially, they added.
"The automated clearing house will be started functioning by November this year," Bangladesh Bank (BB) Governor Atiur Rahman told reporters after a meeting with chief executive officers and managing directors of all commercial banks, held at the central bank in Dhaka.
The governor also said the central bank has planed to request Prime Minister Sheikh Hasina for inauguration of the country's first automated clearing house.
The BB earlier extended the deadline for introduction of automated clearing house by three months in consideration of requests from many banks, the BB officials confirmed.
The Bangladesh Automated Clearing House (BACH) will be launched from November 8 instead of August 3 this year, they said quoting the revised scheduled.
The commercial banks have been asked at the meeting for taking final preparations to connect with the central bank's automated clearing house within this timeframe, the officials added.
The present payment and settlement system in Bangladesh is not at par with the best international practices, which emphasizes the need for safe and secured payment and settlement and the reduction of gap between payment and settlement, according to the BB's annual report for the fiscal 2007-08.
BBN/SS/SI/AD-22July09-2:13 am (BST)