Bangladesh Bank (BB) deputy governor Nazneen Sultana inaugurated the roadshow at a city hotel

Citibank, NA Bangladesh has launched roadshow on Electronic Fund Transfer (EFT) to popularise the modern payment system across Bangladesh.

The roadshow will be comprised of five additional workshops in 2014 in the country's major collection and payment centers located in Bogra, Jessore, Comilla, Mymensingh and Sylhet.

Bangladesh Bank (BB) deputy governor Nazneen Sultana inaugurated the roadshow at a city hotel yesterday. 

She said electronic fund transfer system has brought new dimension to the country’s payment system, which is cost-effective, secured and eco-friendly.

But the country’s people are still not aware about this modern system, she said, expecting the Citi initiative would help popularise the system. 

However, she hoped the people will be habituated in using the system as it is gaining pace as days passing by. Now electronic fund transactions increased to 55,000 per day from 18,000 a couple years back, she said.

BB General Manager of Payment System Department KM Abdul Wadood said the EFT is yet to reach at satisfactory level since its introduction by the central bank in February 2011. A lot of challenges remain in making people habituated, he said.

Citi Managing Director and Head of Cash Product, Southeast Asia, Noel Saminathan, Citi Country Officer Rashed Maqsood, Head of its Treasury and Trade Solution Moinul Huq and Head of its Corporate and Investment Banking Shams Zaman also spoke at the function.

Later at a panel discussion, Dutch Bangla Bank Deputy Managing Director AKM Shirin said a client has to present physically for completing some formalities. This is one of the reasons the system is not getting momentum, he said.

Another discussant said most of the commercial banks do not have full-fledged online banking systems, holding back many to introduce the system.

The opening event was also attended by senior officials from Bangladesh Bank, Bangladesh Automated Clearing House, managers from scheduled banks and corporate clients of Citi Bangladesh along with nominated distributors and dealers.

The objective of the roadshow is to reduce paper-based processes from the entire payment industry and thus adding more efficiency in the economic system.

Through this initiative, Citi Bangladesh hopes to stimulate further utilisation of EFT system across the country in conjunction with the digital initiatives of the central bank.

As real time gross settlement (RTGS) is expected to go live in 2015, it is expected that a culture of strong electronic payment system across the country will develop, said the Citibank.

Faster settlement cycle along with standardisation in payment information transmission will not only help the clients achieve efficient receivable cycle, but also help the communities across the country to get their goods and services far faster than now, it said.

The system, tagged as Bangladesh Electronic Fund Transfer Network (BFTN), initially allows people to make online money transactions, payment of utility bills through internet, transfer of funds (account to account), payment for goods and services, and facilitate online credit card payments in local currency.

People can later transfer fund from their accounts to the recipients in the country irrespective of their banks, the central bank officials said.