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The parliament passed the ‘Payment and Settlement System Bill, 2024’ on Tuesday with an aim to bring bank and non-bank payment services under a legal framework.
Finance Minister A H Mahmood Ali moved the bill for passage along with the report of the concerned parliamentary committee. He said that the bill was moved to protect the interests of customers as there is no existing law regarding the payment and settlement system in Bangladesh.
According to the bill, any banking company cannot participate in any payment system, operate payment systems or provide payment services in electronic currency without obtaining approval from Bangladesh Bank.
It also said no person, institution or company can issue or buy and sell a 'Prepaid Payment Instrument' without obtaining approval from Bangladesh Bank.
Without approval from Bangladesh Bank, any type of investment taking, lending, deposit or financial transaction online or offline is prohibited.
According to the bill, violation of the provisions shall be an offence and individuals involved with the offence shall be liable to imprisonment for a term not exceeding five years or Tk 5 million as a fine or both.
The bill also prohibits furnishing false information in any statement, report or other document. It keeps the provision of imprisonment not exceeding three years or a fine not exceeding Tk 3 million or both for the violation of the provision. The bill also keeps similar punishments for contravention of any other provision of the law.
During the discussion on the bill, opposition and independent lawmakers opined that the banking system in the country was in a mess due to the lack of enforcement of rules by the concerned authorities.
The amendment proposals brought by some opposition lawmakers were rejected through voice votes.