Bangladesh Bank launches digital platform EDSMoney for loans, deposits

The Bangladesh Bank has introduced an electronic dealing system for banks and non-bank financial institutions (NBFIs) such that they will lend and deposit on short-term basis with each other through a digital platform.

The central bank today issued guidelines saying that the new digital platform named EDSMoney will go live on December 1 this year.

EDSMoney will provide a web-based electronic dealing platform with features where lenders will transact short-term amounts.

The maturity of the transactions is between one day and a maximum of one year, among themselves.

Different types of transaction, including call money market and inter-bank repurchase agreement (Repo), will be settled through the platform.

Banks and NBFIs will also quote interest rate and maturity of fund at the platform in order to lend fund to their counterparts.

A Bangladesh Bank official said that the banking regulator would strengthen its monitoring on such types of transaction as lenders now settle those without any web portal.

The central bank started the operation of the digital platform in March this year on an experimental basis.