BB forming escrow implementation committee to regulate e-commerce business

The Bangladesh Bank has taken an initiative to form a committee that will oversee the proper implementation of escrow services within the e-commerce sector, aimed at maintaining order and security on online platforms.

Escrow is a legal concept describing a financial agreement whereby an asset or money is held by a third party on behalf of two other parties that are in the process of completing a transaction.

The committee will include representatives from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the E-Commerce Association of Bangladesh (e-CAB), and professionals from the e-commerce sector.

The decision to form this committee was announced during a courtesy meeting held with delegates from FBCCI and e-CAB, led by Deputy Governor Abu Farah Md Nasser, accompanied by central bank spokesperson and executive director Md Mezbaul Haque.

The meeting, spearheaded by FBCCI Vice President and e-CAB President Shomi Kaiser, also featured notable figures including Tasfin Alam, CEO of the online shopping platform 'Daraz,' as well as e-CAB Director Md Ilmul Haque Sajeeb, and Ananya Raihan.

During her address, Shomi Kaiser stressed the necessity of refining cross-border e-commerce practices to bolster the nation's e-commerce sector and expand its presence in the global market.

She also identified remaining challenges in the sector, and announced FBCCI's intention to convene a policy summit with the Ministry of Commerce, Bangladesh Bank, and relevant stakeholders to address these issues.

In response to Shomi Kaiser's recommendation for an increase in the credit card cap, the Bangladesh Bank pledged to raise it as needed, and provided further directives on this matter.

To foster customer trust and deter fraud, the central bank has enacted the 'Merchant Acquiring & Escrow Service Policy 2023,' encouraging consumers to shop securely on e-commerce platforms.

The escrow implementation committee will be tasked with ensuring the policy's effective execution, said central bank Deputy Governor Abu Farah Md Nasser.