The Financial Express

Banking transactions made mandatory for cash on delivery business

| Updated: May 09, 2021 10:27:26

Banking transactions made mandatory for cash on delivery business

The central bank of Bangladesh on Thursday issued a guideline making mandatory banking transactions in proceeds from the 'cash on delivery’ business.

Currently, courier services have been collecting cash against goods they deliver to the buyers. They later give the collected money of the goods to the sellers or producers.

The mode of business is now very much popular in the urban areas as the buyers/final consumers pay upon receiving the goods. Such a mode helps prevent unethical business practices of online or e-commerce-based organisations.

The central bank in its guideline said from now on such transactions must be made through the country's banking channels.

For this reason, the courier services which provide such service between buyers and sellers must maintain bank accounts. The bank account will be called a settlement account.

BB said this type of transaction through banking channels will ensure transparency in the transaction. And it will help resolve many disputes between the courier services and the sellers or among them.

To open a bank account by courier service providers, they must have a valid licence from the department of post.

He/she must be a member of the courier services association of Bangladesh.

And they also need to maintain a central data system to preserve every transaction and relevant information of the clients.

Under the system, courier man/delivery man will collect the money from the buyers and deposit it to nearby settlement accounts of the concerned courier service providers.

Banks will transfer the money or bill to the account of the sellers or producers.

If the sellers or producers do not have bank account then courier service company will withdraw it and give the parties concerned.

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