BB to form Escrow committee with e-commerce stakeholders

FE Team | Published: October 02, 2023 23:24:47

Bangladesh Bank (BB) has taken an initiative to form an Escrow implementation committee with the inclusion of e-commerce stakeholders in order to oversee the newly introduced Escrow Service.
This development was revealed at a meeting between the central bank and representatives from the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and the E-Commerce Association of Bangladesh (ECAB) on Monday, reports UNB.
Escrow is a legal concept describing a financial agreement whereby an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction.
It is expected to be helpful to get around the problem whereby many e-commerce firms, whether running deliberate scams or going bust in the heat of competition, end up making off with enormous amounts of money paid to them by customers, against which no goods have been delivered.
An escrow facility would see the money paid by the customer to set the transaction in motion, but the money would not go into the sellers' account till the buyer has received it satisfactorily.
In the meeting, Deputy Governor of BB Abu Farah Md Nasser said that the e-commerce sector is still new in the context of Bangladesh.
"There is still a lot to do in this promising sector," he added.
This initiative is aimed at enhancing order and security within the e-commerce sector, Nasser said.
Bangladesh Bank announced the inclusion of key industry players such as the FBCCI, the E-Commerce Association of Bangladesh (E-CAB), and e-commerce entrepreneurs in the implementation committee.
FBCCI Vice President and E-CAB President Shomi Kaiser led the delegation of the private sector.
Spokesperson and executive director of BB Md Mezbaul Haque, ICAB Director and Chief Executive Officer (CEO) of Online Shopping Platform 'Daraz' Khondoker Tasfin Alam, E-Cab Directors Mohammad Ilmul Haque and Ananya Raihan were present at the meeting.
FBCCI urged Bangladesh Bank to consider raising the credit card limit, a request to which Bangladesh Bank responded positively, promising to review and potentially increase the limit later if needed.
During the meeting, private sector representatives voiced concerns and limitations related to the implementation of the Escrow system.
Bangladesh Bank said that the 'Merchant Acquiring and Escrow Service Policy 2023' had been enacted to encourage consumer confidence in e-commerce platforms and combat fraud.