Bangladesh launches internet banking fund transfer services

From now on, customers can transfer money to other accounts within minutes with the launch of inter-bank Internet Banking Fund Transfer or IBFT services.

A bank customer will be able to transfer up to Tk 50,000 in a single transaction through the National Payment Switch Bangladesh or NPSB of the Bangladesh Bank.

Maximum five transactions and total transfer of Tk 200,000 will be allowed per day.

The customers can use the services to pay credit card bills, monthly instalment for deposit schemes or DPS, instalment of loan repayment, and insurance premiums.

Bankers have hailed the introduction of the services on Thursday.

Bank Asia Managing Director Arfan Ali sees the move as a 'milestone' in Bangladesh's banking history.

"Previously, we could transfer money in T+24 hours, meaning 24 hours. Now the funds will be transferred within a minute," he said.

"And the customers will be able to send money to other customers' accounts from home," he added.

Arfan said the services will also be available on mobile phones.

Bangladesh Bank said in a media release the customers will be able to transfer funds from account to account, account to debit or credit card and from debit or credit card to account.

Deputy Governor SM Moniruzzaman inaugurated the services at a function attended by the central bank's executive directors and managing directors of several banks.

According to the release, NPSB was launched in 2012 to ease the process of inter-bank electronic payment. Initially, it allowed only inter-bank ATM transactions and later included inter-bank POS transactions.

Currently, 51 of the 53 banks with payment card business are members of the NPSB.

The move to launch IBFT was taken to expand the card payment business of the banks, the release says.