The Bangladesh Financial institution on Thursday requested all of the scheduled banks to not present any banking companies or transactions facility to unlicensed cost service suppliers (PSP) and cost system operators (PSO).
The central financial institution discovered that a number of entities had been illegally working as PSPs and PSOs with out acquiring the required licence given by the BB, prompting the banking regulator to problem the instruction.
A BB round issued on the day mentioned that clients’ confidence in authorized PSPs and PSOs can be damage if any of the unlawful entities closed down operations or solid clients. The nation’s total financial system could face instability as a consequence of digital foreign money creation by the unlawful entities and use of these for commerce.
Below the circumstances, the BB requested all of the scheduled banks to not facilitate custodian accounts, trust-cum-settlement accounts or some other accounts or transaction amenities and banking companies to the entities which had been operating cellular or e-wallets as cost system operators or some other cost service supplier with out acquiring licence from the central financial institution.
As per knowledge out there on the BB site, two entities — iPay Techniques and D Cash Bangladesh — had been issued the licence to function as cost service supplier and three different entities — IT Consultants, SSL Commerz and ShurjoMukhi — had been allowed to work as cost system operator.
The banks had been additionally requested to not present cost gateways or service provider aggregation companies to the unlawful PSPs and PSOs.
PSPs had been licensed to facilitate funds or cost processes instantly like E-wallet and Cellular Pockets companies to clients and to settle their transactions by a scheduled financial institution or monetary establishment.
Then again, the cost service operators got the licence to function as a settlement system for cost actions between or amongst members the place the principal participant should be a scheduled financial institution or monetary establishment.
The BB issued the round beneath the part 49 of the Financial institution Firm Act, 1991.