Bangladesh Bank has asked all the commercial banks to not open trust cum settlement accounts (TCSAs) under Nagad Limited without the consent of Bangladesh Post Office and the central bank.
The trust-cum-settlement account (TCASs) refers to a custody account where the legal tender shall be stored against the issuance of e-money by a payment service provider.
The policy has been named “Guidelines for Trust Fund Management in Payment and Settlement Services”. Earlier in May, the Bangladesh Bank issued a policy titled “Trust Fund Management”.
The decision came after Nagad’s registration with Bangladesh Post Office and Third Wave Technologies Ltd mutually. But the license is going to expire this September.
In May, the BB issued a guideline for trust fund management in payment and settlement services for MFSs, PSPs, and payment system operators (PSOs).
According to the guideline, this will protect the interest of the customers, who have a lawful claim on such funds at any point in time.
Source: New Age, The Business Standard, The Financial Express, Business Post
