The Bangladesh Bank on Thursday asked all the scheduled banks not to provide any banking services or transactions facility to unlicensed payment service providers (PSP) and payment system operators (PSO).
The central bank found that several entities had been illegally operating as PSPs and PSOs without obtaining the required licence given by the BB, prompting the banking regulator to issue the instruction.
A BB circular issued on the day said that customers’ confidence in legal PSPs and PSOs would be hurt if any of the illegal entities closed down operations or forged customers. The country’s overall economy may face instability due to electronic currency creation by the illegal entities and use of those for trade.
Under the circumstances, the BB asked all the scheduled banks not to facilitate custodian accounts, trust-cum-settlement accounts or any other accounts or transaction facilities and banking services to the entities which were running mobile or e-wallets as payment system operators or any other payment service provider without obtaining licence from the central bank.
As per data available on the BB web site, two entities — iPay Systems and D Money Bangladesh — were issued the licence to operate as payment service provider and three other entities — IT Consultants, SSL Commerz and ShurjoMukhi — were allowed to work as payment system operator.
The banks were also asked not to provide payment gateways or merchant aggregation services to the illegal PSPs and PSOs.
PSPs were licensed to facilitate payments or payment processes directly like E-wallet and Mobile Wallet services to customers and to settle their transactions through a scheduled bank or financial institution.
On the other hand, the payment service operators were given the licence to operate as a settlement system for payment activities between or among participants where the principal participant must be a scheduled bank or financial institution.
The BB issued the circular under the section 49 of the Bank Company Act, 1991. (Source: New Age)