Managing Director/Chief Executive Officers All scheduled banks in Bangladesh Dear Sir, Bangladesh Electronic Fund Transfer Network (BEFTN) Operating Rules. All Scheduled banks of the country that will participate in the Bangladesh Automated Clearing House (BACH) are hereby advised to download the Bangladesh Electronic Fund Transfer Network (BEFTN) Operating Rules for their use. The approved BEFTN Operating Rules is published in the website of Bangladesh Bank. The addresses of the website are: www.bb.org.bd www.bangladesh-bank.org They are also requested to execute and sign the Bangladesh Electronic Fund Transfer Network Participant Agreement and Indemnity (Appendix Seven) and send it to the Department of Currency Management and Payment systems, Bangladesh Bank within 30 September, 2010. Please acknowledge receipt.
Sincerely Yours, Signed (Jinnatul Bakeya) General Manager Tel: 880-2-7120372 Fax: 880-2-7120373 Email: email@example.com
Enclosure: BEFTN Participant Agreement and Indemnity (Appendix Seven).
Bangladesh Electronic Funds Transfer Network (BEFTN) OPERATING RULES
Payment Systems Division Department of Currency Management and Payment Systems Bangladesh Bank 10 August 2010
A modern national payment system is the backbone for a country’s monetary and financial infrastructure and an advanced payment system plays a critical role in the country’s current and future economic development. Several years ago, Bangladesh Bank in partnership with the U.K. Department for International Development (DFID) embarked on a project to modernize Bangladesh’s national payments system. The project is multifaceted and its primary objective was to increase and improve the delivery of workers’ remittances. The effort is known as the Remittance and Payments Partnership (RPP). Over the past two years significant progress has been made in achieving the goals of the initiative. The RPP project has two major payment system components consisting of the creation of an inter‐bank electronic funds transfer system which has been named the Bangladesh Electronic Funds Transfer Network (BEFTN) and the automation of the existing paper cheque clearing system which is known as the Bangladesh Automated Cheque Processing System (BACPS). The creation of the Bangladesh Electronic Funds Transfer Network is the most critical component in the development of a modern payments system infrastructure. BEFTN will be the most powerful payments system in Bangladesh. The network will have extensive reach by connecting, for the first time, all of the banks in Bangladesh. This new electronic funds transfer network will provide the foundation for providing access to every banked and non‐banked consumer as well as every business customer to facilitate electronic commerce. No other single electronic network will have the reach of BEFTN. This is a significant advantage over other payments systems being developed in the country. It is also the only payment system that handles a wide variety of credit transfer applications such as payroll, foreign and domestic remittances, social security, dividends, retirement, expense reimbursement, bill payments, corporate payments, government tax payments, veterans payments, government licences and person to person payments as well as debit transfer applications such as mortgage payments, membership dues, loan payments, insurance premiums, utility bill payments, company cash concentration, government tax payments, ...