Banks asked to offer alternative settlement in flooded regions

The Bangladesh Bank has asked banks, mobile financial services and payment service providers to offer alternative settlement for customers in flood-affected regions – the northern and north-eastern areas – to ensure uninterrupted cash flow.

A circular, issued by the Payment Systems Department (PSD) on Monday, stated that recently, the country’s northern and north-eastern areas have been hit by floods, causing many branches of banks, ATM booths, agent banking outlets, and MFS agent points to go under water.

Such unexpected circumstances have disrupted the settlement of financial transactions. Banks, mobile financial services and payment service providers must take adequate initiatives to ensure alternative settlement in those regions, added the circular.

The Bangladesh Bank had previously directed the banks to provide banking services through alternative branches in flood-hit areas.