Electronic transaction will allow businesses and banks to settle transaction electronically and digital signature will enable users to transfer cash online via Internet without physical movement, sources said.

"A draft of the Act has been finalised and it will be placed before the cabinet soon for approval," a top official of the Ministry of the Science and Information Communications Technology told The Daily Star yesterday.

The Law Commission initially prepared the draft Act and the ministry finalised it incorporating stakeholders' views and taking into account the latest development in the sector.

The central bank helped prepare the draft Act.

The country has an ICT policy, introduced in October 2002. The government now seeks to transform the policy into an Act to cater for the present-day need, a senior official said.

"We need to have a law to create an opportunity for electronic transaction and digital signature to facilitate e-commerce," he added.

The business circle, mainly the ICT industry, was pressing the government for such a law.

Ahmed Hasan Jewel, vice-president of Bangladesh Computer Samity, hoped the enactment would give a boost to e-commerce.

"Law-enforcement agencies would not be able to curb cyber crimes without a law like the one going to be introduced," an official said. He however pointed out the rate of such crimes in the country is still insignificant but it shows an upward trend in developed countries.