• Monday, May 16, 2022
  • Last Update : 03:54 pm

Bangladesh Bank issues guideline on MFS trust fund

  • Published at 08:47 pm May 8th, 2021
Bangladesh Bank BB head office HQ
Mehedi Hasan/Dhaka Tribune

Cash-on-delivery services made digital for courier service providers

The Bangladesh Bank on Thursday issued a guideline for trust fund management in payment and settlement services for mobile financial services (MFS), payment service providers (PSP), and payment system operators (PSO) to protect the interests of clients.

The central bank, under the Bangladesh Payment and Settlement Systems Regulations 2014, issues licences to non-bank entities that desire to provide payment and settlement services in the country.

In the process of facilitating payment and settlement services, these entities hold money that does not belong to them, rather belongs to their customers or payment participants.

A trust fund will comprise any such money that creates a liability of the service providing entity to its customers or participants in the process of mutual business arrangement, said the central bank guideline.

These guidelines are aimed at protecting the interest of the customers, who have a lawful claim on such funds at any point in time, said a senior official of the central bank.

The Bangladesh Bank guidelines said that the money received by MFS, PSP, PSO, or any other non-bank entity from its customers or participants for issuing e-money, payment instruments, settlement of transactions, sales proceeds, or any other fund directed by Bangladesh Bank shall be held in the trust fund.

The MFS, PSP, PSO, or any other non-bank entity that holds the trust fund shall open and maintain — subject to the prior approval of Bangladesh Bank — trust cum settlement accounts with scheduled commercial banks in Bangladesh, as per the guideline.

Cash-on-delivery services made digital for courier service providers

In a separate circular on the same day, the central bank barred cash transactions between courier service providers and sellers of online platforms against delivery of products on cash-on-delivery terms.

The Bangladesh Bank said that the financial transactions between the sellers and the courier service providers must take place through a formal banking channel.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail