A part to be invested in govt. securities
The Bangladesh Bank has issued guidelines for creating a trust fund management for payment and settlement of mobile banking services, reports UNB.
These guidelines would be applicable for Mobile Financial Services (MFS), Payment Service Provider (PSP), Payment System Operator (PSO), and any other non-banking entity authorised by Bangladesh Bank to provide payment and, or settlement services that require to hold Trust Fund against the payment and, or settlement obligation created by the entity to its customers and, or participants.
The relevant clauses of these guidelines will also be applicable for scheduled banks that open and maintain Trust Cum Settlement Account for the Trustee, the BB said.
According to the guidelines, the money received by MFS, PSP, PSO or any related services for issuing e-money/payment instrument and, or settlement of transactions or sales proceeds or any other fund directed by the BB should be put in the trust fund.
Besides, these entities shall open and maintain, subject to the prior approval of BB, Trust Cum Settlement Accounts with the scheduled commercial banks in Bangladesh.
The central bank guidelines also state that a certain portion, as instructed and, or approved by the central bank from time to time, of the trust fund has to be invested in approved government securities, fixed deposit receipt (FDR) and/or any other approved instruments.
According to the guidelines, customers and, or participants who have lawful payment and settlement claims on the fund shall be the beneficiary of the Trust Fund.
Bangladesh Bank shall be the Overseer of the Trust Fund on behalf of the beneficiaries.
Besides, the central Bank will reserve the right of imposing financial penalties, withholding, suspending and cancelling the approval/NOC, if the activities of a service provider seem to be detrimental to public interest.
