Sonali Bank gets Bangladesh Bank nod to start PayPal services

Bangladesh Bank has permitted state-owned Sonali Bank to launch the online money-transfer services with PayPal in the country.

“The much-awaited PayPal services will soon be introduced in Bangladesh now after the clearance,” Sonali Bank General Manager and Chief Information Officer Mofazzal Hossain hopes.

PayPal is an e-commerce firm, which provides electronic alternatives to traditional paper methods like cheques and money orders. The service is very popular among online shoppers and outsourcing experts.

Mofazzal told bdnews24.com that the bank's managing director received the permission letter on Monday to introduce PayPal services in Bangladesh.

Sonali Bank earlier struck a deal with the global online money transfer giant on the matter, Mofazzal said.

"We have succeeded after long discussions. We sent a proposal to sign a memorandum of understanding (MoU) to the PayPal last year. We started to act when they replied positively. Now, the entire process is finished as the Bangladesh Bank has given the clearance," he said.

He also said the Sonali Bank MD held a meeting with PayPal officials last week. "Now we hope we will soon be able to launch the services," he added.

State Minister for ICT Zunaid Ahmed Palak told bdnews24.com earlier: "We have advanced much in our efforts under the leadership and supervision of prime minister's ICT affairs adviser Sajeeb Wazed Joy to introduce PayPal services in Bangladesh. I hope we will be able to give the freelancers and others the good news very soon."

The launching of PayPal services has been the subject of discussion in Bangladesh since 2011. Palak met a vice president of PayPal during his US visit in 2015. The minister said at the time that they had discussed the strategic aspects of including Bangladesh's name on the list of countries where the company has its operations.

An electronic debit or credit card issued against a bank account is needed to open a PayPal account.

A PayPal account holder can ask the PayPal authorities for cheques, or spend money on the account, or submit money to a bank account affiliated with his or her PayPal account.