The central bank has prepared a draft national payment systems act to govern the operations of all kinds of payments in the country.

Once implemented, the Payment Systems Act 2015 will enhance efficiency in controlling the payments.

The objectives of the national payment system include minimising payment, clearing and settlement risks as well as achieving reliable, secure, convenient, cost effective, universal and integrated systems to meet the needs of the growing economy.

It also aims to instate punitive measures for those who contravene laws.

“At present, there are a lot of activities under the electronic system. The law aims to prevent irregularities and bring law breakers to justice,” said Nazneen Sultana, deputy governor of Bangladesh Bank.

The proposed law comes right when transactions through the electronic payment system, the electronic fund transfer and mobile banking are growing tremendously -- a development which necessitates providing users a safeguard from electronic frauds.

The draft of the law has been uploaded on the central bank's website for public scrutiny and opinion, both from individuals and banks, after which the regulator will move to make it law.

Under the draft, Bangladesh Bank will regulate the national payment systems to reduce potential risks, and no individual or company will be able to implement payment services without obtaining a licence from the central bank.

However, banks or other financial institutions which already maintain accounts with the central bank will not require new licence to provide payment services. They will however, need to get the regulator's no-objection certificate.

People found guilty of violating rules under the law would face a fine of a maximum of Tk 5 lakh, or a prison-term of up to three years or both.

If any licensee wants to outsource the payment system management, it has to take permission from the central bank.