The Payment and Settlement System Bill-2024, recently passed by Parliament, introduces regulations to manage and secure financial transactions in Bangladesh. The law, now published on the Bangladesh Bank website, mandates that no person or organization can issue, buy, or sell prepaid payment instruments without central bank approval. Violations can result in up to five years in prison or fines up to Tk 50 lakh. Previously, unregulated prepaid cards allowed for purchases worth double or triple their value, leading to financial risks. The new law requires approval from the Bangladesh Bank for issuing, buying, selling advance payment documents, and conducting any public financial transactions. Banks and companies must also secure central bank authorization to manage payment systems or provide electronic currency services. The law aims to address the lack of regulation for payment activities, bringing both banks and non-bank financial institutions under a legal framework to protect customer interests and ensure compliance with payment system regulations.
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