Bangladesh Bank, the central bank of Bangladesh, has taken a significant step by establishing an implementation committee in accordance with its Escrow policy. This committee includes various stakeholders and is tasked with overseeing and regulating the country’s e-commerce platforms.
This development was announced during a meeting held between the central bank and representatives from the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and the E-Commerce Association of Bangladesh (ECAB) recently.
The concept of Escrow is a legal arrangement where a third party holds assets or funds on behalf of two parties involved in a transaction even if this mechanism is expected to address the problem often encountered in the e-commerce sector, where companies, whether engaging in fraudulent activities or facing financial challenges amid fierce competition, end up with significant sums of money from customers without delivering the promised goods.
Under the Escrow facility, funds paid by customers initiate the transaction but are not transferred to the seller’s accounts until the buyer has received the goods to their satisfaction.
This provides an added layer of security for online transactions.
During the meeting, Deputy Governor of Bangladesh Bank, Abu Farah Md Nasser, emphasised that the e-commerce sector in Bangladesh is still in its early stages, with ample opportunities for growth.
He stated, “There is still much to be done in this promising sector.”
The primary goal of this initiative is to enhance the efficiency and security of e-commerce operations within the country.