The Payment and Settlement System Bill 2024 was tabled in the parliament on Monday to bring all electronic payment by banks and nonbank payment service providers under the supervision of the Bangladesh Bank.
State minister for finance ministry Waseqa Ayesha Khan, on behalf of finance minister AH Mahmud Ali, placed the bill in Jatiya Sangsad.
The bill was sent to the parliamentary standing committee on the fianc茅 ministry for further examination in 15 days.
According to the bill, no banking company would be allowed to participate in any payment system, operate payment system or provide payment services in electronic currency without approval of the Bangladesh Bank.
No person, institution or company can issue or buy and sell any Prepaid Payment Instrument without approval of the central bank, it said.
The bill proposed prohibition of loan, deposition or financial transaction through online or offline without central bank permission.
Violation of those provisions is punishable with imprisonment for five years or a fine of Tk 50 lakh or both, said the bill.
According to the bill, furnishing false information or statement on any material matter, omission in furnishing information or statement on such matter will be punishable with imprisonment for three years or a fine of Tk 30 lakh or both.
If any person contravenes any other provision of the bill, or contravenes any order or direction made or any condition imposed or any provision of any rule or regulation made thereunder, such contravention shall be an offense and shall be liable to imprisonment for three years, or a fine of Tk 30 lakh or both.
Under this proposed law, all crimes will be cognisable, non-bailable and non-compoundable.
According to the objective of the bill, there is no existing law regarding the payment and settlement system in Bangladesh.
All payment and settlement systems are being managed under the Bangladesh Payment and Settlement Systems Regulations 2014 and the Regulations on Electronic Fund Transfer 2014 by the Bangladesh Bank as per article 7A(e) of the Bangladesh Bank Order 1972.
As there is no separate law in this regard, the banks are conducting activities by contracting with Bangladesh Bank under the Contract Act 1872 in order to comply with the regulations described for participating in various electronic transaction systems.
In addition, there is currently no law regulating the payment activities of nonbank financial institutions.
