Bangladesh Bank Training Academy Journal

Abstract

Digital payment systems play a crucial role in developing an efficient payment system in both developed and developing countries. Given the benefits of digital payments, Bangladesh Bank has upgraded and digitized its payment and settlement system remarkably over the past few years. The paper discusses on present digital payment system in Bangladesh, its advantages, disadvantages and limitations. Policy Recommendations to digitize domestic payment system are: developing a unique identification program in a centralized database that both public and private sector players can access to verify identities, implementing strict monitoring systems to prevent illegal money transaction, establishing an appropriate consumer protection framework, promoting product understanding and consumer education, improving regulatory environment, implementing interoperability among the platforms, Promoting merchant acceptance infrastructure, leveraging existing networks quickly to far-reaching areas, digitizig all government receipts & payments and merchant payments, and adopting appropriate cyber security measures.