Currently, subscribers pay bills for four utility services -- telephone, power, gas and water -- to separate banks running between branches and waiting in long queues for hours on end.

The system would be launched in Dhaka, likely next month, and will be copied across the country in phases.

Officials said the decision followed the Public Administration Reforms Commission's suggestion for payment of all utility service bills to the selected branches of the state-owned Sonali, Rupali, Agrani and Janata banks.

They said the cabinet approved a similar proposal on August 17, 1999 and an official notification was issued on December 14 the same year for its implementation. But the proposal could not be realised for some preconditions by the banks.

The banks demanded Tk 5 in commission for each bill plus furniture and fixture cost, but the government refused to pay the commission and the difference stalled an agreement between the banks and utility service providers.

The Cabinet Division placed the proposal again in the cabinet meeting on August 25 to introduce the system.

The division recommended paying Tk 2 to banks as collection cost. It also stressed the need for selecting adequate number of bank branches to enable subscribers to pay bills without difficulty.

The cabinet meeting with Prime Minister Khaleda Zia in the chair accepted the proposal, but refused to pay Tk 2 to the banks in commission or in collection costs.

The meeting observed the banks would benefit from deposition of cash as bills.

As per the cabinet decision, subscribers will pay the bills of all utility services together or separately to a branch of a particular bank and a selected bank in a particular area will receive the bills.

The finance division will select banks in different areas to accept the bills.

After selection of banks on an area basis, utility service providers will sign agreements with banks.

Official sources said the finance division took all preparations and Finance Minister M Saifur Rahman will soon convene a meeting to implement the decision.

They said the finance minister was interested in involving private banks in the bill collection process, but no decision was taken to that end.