BB updates BEFTN system

FT ONLINE

The Bangladesh Bank (BB) has updated its electronic funds transfer system that will come into effect from tomorrow (October 24) to facilitate business activities across the country.

Payments will be settled within a day instead of the existing next day by using the updated Bangladesh Electronic Funds Transfer Network (BEFTN), according to officials.

Currently, the corporate entities are able to pay their employees' salaries, utility bills, IPO refund warrant, company dividend and other payments by using electronic funds transfer network without cheques.

The central bank issued a circular in this connection on Tuesday and asked the managing directors and chief executive officers of all scheduled banks for taking necessary preparations for the implementation of the latest applications.

"We've updated our clearinghouse applications to facilitate the overall business activities as well as to boost the economy," a senior official of the BB said while explaining the main objective of the system upgradation.

The Bangladesh Automated Clearing House (BACH), the automated payment systems platform, has two components - the Bangladesh Automated Cheque Processing Systems (BACPS) and the BEFTN