BB starts automated clearing house on trial basis
Monday, 9 November 2009
Siddique Islam
The central bank Sunday launched its automated clearing house on testing and trial basis that would function in full swing by early next year, officials said.
Bangladesh Bank Governor Dr Atiur Rahman, Deputy Governor Ziaul Hassan Siddiqui, Executive Director Chowdhury Mohidul Hoque, DFID Country Director Chris Austin, central bank executives and project officials were present on the occasion of the trial run demonstration at the central bank.
"The automated payment system will expedite the country's business activities as well as boost the economy," the BB governor told reporters Sunday. The automated clearing house will be implemented fully within the next few months with participation of all commercial banks, he said.
The Bangladesh Automated Clearing House (BACH), the automated payment systems platform, has two components - the first one is Bangladesh Automated Cheque Processing Systems (BACPS) and the second Bangladesh Electronic Funds Transfer Network (BEFTN).
He said that it would contribute to faster transactions, help spur businesses and thus contribute to the overall economy. Introduction of the system in some cases elsewhere in the world had contributed to boost GDP by 1 per cent, he added.
The governor said Prime Minister Sheikh Hasina is expected to inaugurate the BACH after completion of the trial run and the commercial banks getting ready to join the system.
"We've planned to implement the BACH fully some time early next year aiming to facilitate business activities through modernising the payment and settlement systems," Chowdhury Mohidul Hoque told the FE.
He also said around 35 commercial banks out of 48 have already installed software and hardware for setting up links between the banks concerned and the central bank.
"We expect that the rest of the banks will complete their preparations in this connection shortly," Mr. Hoque, who is also the project director, said, adding that such payment and settlement system will also help the banks to automate and digitise their functionalities.
Under the new system, the payment will be settled using automated cheque clearing system and electronic fund transfer among 1,050 bank branches in Dhaka initially, the BB officials said.
The central bank of Bangladesh also plans to extend such services to division and district levels in phases for the sake of smooth business activities in the country, they added.
Three commercial banks - state-owned Janata Bank Limited, Eastern Bank Limited and Dutch-Bangla Bank Limited - took part in the trial run of the automated clearing system on the first day.
The central bank earlier extended the deadline for introduction of automated clearing house by three months in consideration of requests from some commercial banks, they added further.
The BACH was scheduled to launch on August 3 this year.
The central bank Sunday launched its automated clearing house on testing and trial basis that would function in full swing by early next year, officials said.
Bangladesh Bank Governor Dr Atiur Rahman, Deputy Governor Ziaul Hassan Siddiqui, Executive Director Chowdhury Mohidul Hoque, DFID Country Director Chris Austin, central bank executives and project officials were present on the occasion of the trial run demonstration at the central bank.
"The automated payment system will expedite the country's business activities as well as boost the economy," the BB governor told reporters Sunday. The automated clearing house will be implemented fully within the next few months with participation of all commercial banks, he said.
The Bangladesh Automated Clearing House (BACH), the automated payment systems platform, has two components - the first one is Bangladesh Automated Cheque Processing Systems (BACPS) and the second Bangladesh Electronic Funds Transfer Network (BEFTN).
He said that it would contribute to faster transactions, help spur businesses and thus contribute to the overall economy. Introduction of the system in some cases elsewhere in the world had contributed to boost GDP by 1 per cent, he added.
The governor said Prime Minister Sheikh Hasina is expected to inaugurate the BACH after completion of the trial run and the commercial banks getting ready to join the system.
"We've planned to implement the BACH fully some time early next year aiming to facilitate business activities through modernising the payment and settlement systems," Chowdhury Mohidul Hoque told the FE.
He also said around 35 commercial banks out of 48 have already installed software and hardware for setting up links between the banks concerned and the central bank.
"We expect that the rest of the banks will complete their preparations in this connection shortly," Mr. Hoque, who is also the project director, said, adding that such payment and settlement system will also help the banks to automate and digitise their functionalities.
Under the new system, the payment will be settled using automated cheque clearing system and electronic fund transfer among 1,050 bank branches in Dhaka initially, the BB officials said.
The central bank of Bangladesh also plans to extend such services to division and district levels in phases for the sake of smooth business activities in the country, they added.
Three commercial banks - state-owned Janata Bank Limited, Eastern Bank Limited and Dutch-Bangla Bank Limited - took part in the trial run of the automated clearing system on the first day.
The central bank earlier extended the deadline for introduction of automated clearing house by three months in consideration of requests from some commercial banks, they added further.
The BACH was scheduled to launch on August 3 this year.