PSD Circular No. 02: Encourage the usage of Electronic Interbank Payments

Department of Payment Systems Bangladesh Bank Head Office, Dhaka. 21 May, 2017 PSD Circular No.: 02/2017 Date: ------------------- 7 Jyestha, 1424 Managing Director/Chief Executive Officer, All Scheduled Banks operating in Bangladesh. Dear Sir, Context: Encouraging the usage of electronic payment systems in the context of interbank transactions.

To modernize, secure, make efficient, and make accessible to all the country's payment, clearing, and settlement systems, the Bangladesh Bank has continued various programs. As part of the implementation of this goal, the Bangladesh Automated Clearing House (BACH) program was launched in 2010. In continuation of this, Periodic Electronic Funds Transfer (EFT), National Payment Switch (NPS), and Mobile Financial Services (MFS) were launched, with the latest addition being the Real Time Gross Settlement (RTGS) system.

There is currently a lack of adequate understanding among the bank's customers, business people, business organizations, general public involved in financial transactions, and in some cases, many bankers regarding these recently introduced systems for interbank transactions in the country. Furthermore, many bank branches lack the capability to conduct transactions through these methods, resulting in the usage of these electronic payment systems not reaching the desired level. Consequently, the benefits of these systems are not fully reaching the customer base, and their expected impact on the economy is not being realized. Therefore, to ensure the highest usage of the country's payment systems, especially EFT and RTGS, and to ensure that every bank branch has the capability to provide this service, and to create awareness among bankers, business organizations, various government agencies, and the general public, the following measures are advised:

1. Scheduled banks shall take necessary measures to provide ACH and RTGS transaction services continuously through all their branches by 31-12-2017;
2. Branches capable of providing continuous services shall take measures to display awareness banners regarding electronic payment systems in easily visible locations in front of the branches;
3. Necessary training and counseling shall be arranged for all branch managers providing EFT and RTGS services, as well as concerned bank officials, to provide them with adequate understanding of these systems;
4. Banks shall individually or jointly take area-specific awareness campaigns (such as seminars, workshops, leaflets, electronic and print media campaigns, etc.) to create awareness among customers regarding EFT and RTGS systems; and
5. Subject to ensuring necessary security, each bank shall take measures to launch internet banking services for customers to facilitate customer participation in electronic transaction systems.

These instructions shall be implemented immediately.

(Lila Rashid) General Manager Phone: 9530174