Introduction of 'Payment and Settlement Bill-2024' in Jatiya Sangsad
In order to protect the interests of the customers, the 'Payment and Settlement System Bill-2024' has been introduced in the JS to bring the non-bank payment service providers as well as the banks under the legal framework.
On Monday (06 May), the bill was sent to the Parliamentary Standing Committee on Finance for further scrutiny after it was introduced by Minister of State for Finance Waseka Ayesha Khan. The committee has been asked to submit a report in this regard to JS within 15 days.
The Statement of Purpose and Reasons of the Bill states that there is no existing law in the country regarding Payment and Settlement system. Currently, all payment and settlement systems are being operated under Bangladesh Bank Order-1972, Bangladesh Payment and Settlement Systems Regulations-2014 and Regulations on Electronic Fund Transfer-2014. As there is no separate law in this regard, the banks are conducting activities under contract with Bangladesh Bank to comply with the regulations described for participating in various electronic transaction systems. Besides, there is currently no law regulating the payment activities of non-bank financial institutions. Therefore, in order to protect the interests of customers, an initiative has been taken to enact 'Payment and Settlement System Act-2024' under the legal framework of banks as well as non-bank payment service providers.
The bill states that the offenses committed under this Act are cognizable, non-bailable and non-committable. It has been said that no bank-company can participate in any payment system, manage payment system or provide payment service in electronic currency without the approval of Bangladesh Bank. Similarly, no individual organization or company can operate any payment system or provide payment services without obtaining a license from Bangladesh Bank. Violation of this provision shall be punishable with imprisonment for a maximum of 5 years or with a fine of up to Tk. 50 lakh or with both.
The bill also states that no person, organization or company can issue, buy and sell advance payment documents without the approval of Bangladesh Bank. Without the approval of Bangladesh Bank, no online or offline platform can operate any kind of investment, loan, money storage or financial transactions from the public. Violation of these provisions will be punishable with a maximum imprisonment of 5 years or a maximum fine of Tk. 50 lakh or both.