The central bank on Thursday issued a guideline for trust fund management in payment and settlement services for mobile financial services (MFS), payment service provider (PSP) and payment system operator (PSO), to protect the interests of customers.
"We've introduced the guideline for the first time aiming to protect the interest of customers," a senior official of the Bangladesh Bank (BB) told the FE, while explaining the main objective of the guideline.
Actually, in the process of facilitating payment and settlement services, non-banking entities hold money that does not belong to them, rather belongs to their customers and, or payment participants.
A trust fund will comprise any such money that creates a liability of the service providing entity to its customers and, or participants in the process of mutual business arrangement.
These guidelines shall be applicable for MFS, PSP, PSO, and any other non-banking entity authorised by the central bank to provide payment and, or settlement services that require to hold trust fund against the payment and, or settlement obligation created by the entity to its customers and, or participants.
The money received by MFS, PSP, PSO, or any other non-banking entity from its customers and, or participants for issuing e-money/ payment instrument and, or settlement of transactions or sales proceeds or any other fund directed by the BB shall be held in the trust fund, according to the guidelines.
The MFS, PSP, PSO, or any other non-banking entity that holds the trust fund shall open and maintain, subject to the prior approval of BB, Trust Cum Settlement Accounts with the scheduled commercial banks in Bangladesh.
A certain portion, as instructed and, or approved by the central bank from time to time, of the trust fund has to be invested in approved government securities, fixed deposit receipt (FDR) and/or any other approved instruments.