The country’s payment system operators and payment system providers will have to procure licences from Bangladesh Bank to conduct their business operation, said officials of the central bank. Payment system operator (PSO) refers to an entity for operating a settlement system for payment activities between participants of which the principal participant must be a scheduled bank or financial institution.
The PSOs are settling inter-bank transaction between banks and clients through automated teller machines.
Q-Cash, Cashlink Bangladesh and OMNIBUS are now providing such type of services in the country’s baking sector.
Payment service provider (PSP) refers to an entity for providing payment services to its participants or to a payment system for the purpose of facilitating payment processes and settling their transactions through a scheduled bank or financial institution.
A BB official told New Age on Monday that the central bank had already outlined the new approval system for the PSOs and the PSPs with its Bangladesh Payment and Settlement System Regulation, 2014 (amended).
The central bank will place the amended regulation before today’s board meeting of the BB to take approval of the new guideline, he said.
The PSOs and the PSPs will have to maintain a capital structure in a bid to mitigate their financial risks, he said.
The central bank will be able to monitor and supervise the PSOs when they will be brought under the central bank’s licencing, he said.
‘The inter-bank settlement through ATM and point-on-sale increased significantly in the last few years. The settlement is mainly completed through the PSOs, so it is important to monitor them,’ he said.
The central bank will impose financial penalty against the PSOs and the PSPs if they violated the central bank’s guideline, he said.
Besides, the BB will cancel the licences of the PSOs and the PSPs if they conduct harmful activities against the clients’ interest, he said.
Q-Cash business director Osman Haidar told New Age on Monday that the central bank’s initiative was excellent as it would bring more discipline in the financial sector.
The central bank should scrutinise properly before providing licences to any PSOs and PSPs, he said.
-With New Age input
