Bangladesh Bank makes cash-on-delivery services cashless

Staff Correspondent | Published: 23:07, May 07,2021

 
 

A file photo shows the Bangladesh Bank headquarters at Motijheel in the capital. The Bangladesh Bank has barred cash transactions between courier service providers and sellers of online platforms against delivery of products on cash-on-delivery terms through the courier service providers. — New Age photo

The Bangladesh Bank has barred cash transactions between courier service providers and sellers of online platforms against delivery of products on cash-on-delivery terms through the courier service providers.

The central bank mentioned the bar in its guidelines on delivery of products to customers by courier service providers.

It also mentioned that financial transactions between the sellers and the courier service providers must take place through a formal financial channel.

For the execution of transactions through formal channels, maintenance of settlement accounts was made mandatory for all the courier service providers.

For a seller, who has no bank account or MFS account, the courier service provider was allowed to transfer the highest Tk 5,000 to such a seller against a single product delivery.

In such cases, the courier service providers will have to deposit the money to their settlement accounts first and then the money can be withdrawn in favour of the seller.

The guidelines also elaborated on the cash-on-delivery process and how the money would be parked to a settlement account of the courier service providers and the same would be delivered to the MFS or bank accounts of the suppliers.

Under the system, the courier service providers would be allowed to deliver products from business-to-customer and from businesstobusiness.

First, the seller would hand over the products along with the invoice to the courier service provider for cash-on-delivery.

The courier service provider would then hand over the products for delivery along with the invoice declared by the seller.

Following this, the delivery staff of the courier service providers would deliver the products to the customers or buyers and collect the money as mentioned in the invoice by the sellers.

The courier service providers would then deposit the money to the entity’s settlement account upon collection from the delivery personal.

Later, the bank would disburse the money to the sellers’ or vendors’ bank and mobile financial service accounts as per the instruction of the courier service providers.

In order to ensure transparency, the courier service providers were asked not to mix any of its money along with the proceeds of the cash-on-delivery or conditional booking kept in the settlement account.

To operate the system, the courier service providers are supposed to have a central data system in place so that the entire process can be tracked and the required data can be preserved.

The courier service providers would have to submit a report to the central bank on a particular month’s financial transactions through the settlement account in 15 days of the immediate next month.

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