Jatiya Sangsad on Tuesday passed the Payment and Settlement System Bill 2024 to bring all electronic payment by banks and non-bank service providers under the supervision of the Bangladesh Bank.
Finance minister Abul Hassan Mahmood Ali moved the bill and the parliament passed it by voice vote.
According to the proposed law, no banking company can participate in any payment system, operate a payment system or provide payment services in electronic currency without approval from the central bank.
Violation of the provision will be an offence and be liable to imprisonment for a term not exceeding five years or a fine of Tk 50 lakh or both, according to the bill.
As per the bill, no person, institution or company can issue or buy and sell a Prepaid Payment Instrument without approval from the Bangladesh Bank.
It will prohibit loan, deposition or financial transaction through online or offline without central bank鈥檚 permission.
Any person will be jailed for a term not exceeding five years or fined Tk 50 lakh, or both for the violation of any of these provisions.
The bill also prohibits anyone from participating in any payment system without proper permission from the regulatory bodies concerned, or by giving false information and pronounces jail term not exceeding three years or fine not exceeding Tk 30 lakh or both for the violation of these provisions.
Under this proposed law, all crimes will be cognizable, non-bailable and non-compoundable.
The objective of the law states that there is no existing law regarding the payment and settlement system in Bangladesh at preset.
All payment and settlement systems are currently managed under the 鈥楤angladesh Payment and Settlement Systems Regulations, 2014 and Regulations on Electronic Fund Transfer, 2014鈥� by the Bangladesh Bank according to 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 the Bangladesh Bank under 鈥楾he Contract Act, 1872鈥� to comply with the relevant regulations for participating in various electronic transaction systems.
Neither is there any current law to regulate the payment activities of non-bank financial institutions.