Beftn System of Bangladesh Bank

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  • Topic: Electronic commerce, Payment systems, Electronic funds transfer
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Department of Currency Management and Payment Systems Bangladesh Bank Head Office Dhaka DCMPS Circular No. 09/2010 Date : 10 Bhadro 1417 25 August 2010

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: jinnatul.bakeya@bb.org.bd   

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 

 

FOREWORD 
 

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, ...
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