Bangladesh: Internet banking transactions surge in November

Incepted in 2011, the BEFTN was the country’s first paperless electronic inter-bank funds transfer system. It facilitates both credit and debit transactions, as a lead over the cheque clearing system.

The network can handle credit transfers such as payroll, foreign and domestic remittances, social security payments, company dividends, bill payments, corporate payments, government tax payments, social security payments, and person-to-person payments.

It accommodates debit transactions like utility bill payments, insurance premium payments, club or association payments, and equated monthly instalment payments. Most of the government salaries, social benefits, social safety net payments and other government payments are processed through the BEFTN as well.

Tk 461,218 crore was transacted through the real-time gross settlement (RTGS) of the central bank, an increase of more than 66 per cent from Tk 277,562 crore a year earlier.

In order to facilitate real-time settlement of high-value time-critical payments, the BB introduced the RTGS system in 2015. It allowed banks and corporates to settle payments instantly. Individual customers are also availing the service to settle large-value transactions.

An amount worth Tk 1 lakh and above is settled through the RTGS system while the BEFTN processes an amount less than that.

Non-bank financial institutions settled funds through the RTGS to the amount of Tk 23,169 crore in November, central bank data showed. It was Tk 17,825 crore in June, the latest for which data is available on the central bank website.

For individuals, the maximum value of each transaction is Tk 3 lakh through internet banking. The frequency is a maximum of 10 times a day and not more than Tk 10 lakh per day.

For corporate, the limit has been set at Tk 5 lakh per transaction. The maximum frequency is 20 times while a total of Tk 25 lakh could be transacted per day.