BB for using electronic fund transfer network

Posted by BankInfo on Fri, Apr 08 2011 09:35 am

Bangladesh Bank (BB) has advised all commercial banks and financial institutions to disburse profits to shareholders, through the Electronic Fund Transfer Network (EFTN). The central bank issued a circular on Thursday, in this regard, which was signed by AKM Fazlur Rahman, deputy general manager of department of currency management and payment system.
The circular mentioned that the EFTN system had been launched by the central bank, on February 28, in order to make financial transactions fast, efficient and safe. The system is cost-effective and saves time, the
circular noted.
Earlier, 40 private and state-owned commercial banks had joined the central bank's EFTN credit transfer initiative, by rolling out the service in branches across the country.
Under the programme, BB has provided the foundation for access to every banking and non-banking consumer, as well as business customers, to facilitate electronic commerce, inward remittance and salary payment, at lower costs and shorter time.
Terming the EFTN system a milestone for the country's banking history, central bank governor Dr Atiur Rahman said the network will have extensive reach by connecting, for the first time, all the banks in Bangladesh, for transfer of funds electronically.
He said creation of the EFTN system is the most critical component in the development of a modern payments system infrastructure.
"It (EFTN) is the electronic highway of digital banking. In the near future, I expect that all banks will begin processing electronic funds transfers through this network," he said.
The BB governor also maintained that the transaction volume on the network will grow slowly, as banks would have to explain the benefits of electronic payments to their clients.
He said education and marketing efforts are necessary to maximise capabilities of the network.
Dr Rahman added that EFTN is an integral component for reaching the goal of Digital Bangladesh, for financial services.

News: The Independent/Bangladesh/ Apr-06-2011