(Central Bank of Bangladesh)
Motijheel, Dhaka-1000 Bangladesh
DCMPS (PSD) Circular Letter no.11
Department of Currency Management and Payment Systems (Payment Systems Division)
Managing Directors/ Chief Executive Officers All Commercial Banks
Amendment of Guidelines on Mobile Financial Services for the Banks.
Attention is drawn to DCMPS Circular No-08 dated September 22, 2011 on the captioned subject. This is to inform you that some amendments are made in the mentioned guidelines. All scheduled banks of the country are now advised to download the amended guidelines from the website of Bangladesh Bank. The address of the website is: www.bb.org.bd
Please acknowledge receipt.
Yours faithfully -sd/( A.K.M Fazlur Rahman ) Deputy General Manager Phone: 7123443
Guidelines on Mobile Financial Services (MFS) for the Banks 1.0 Introduction The banking industry of Bangladesh has shown tremendous growth in volume and complexity over the recent years. Despite making significant improvements in all the areas relating to financial viability, profitability, innovation and competitiveness, there are concerns that banks have not been able to include vast segment of the population, especially the underprivileged sections and rural people into the fold of basic banking services. On the other hand, rapid growth of mobile phone users and wider range of the coverage of Mobile Network Operators (MNOs) has made their delivery channel an important tool‐of‐the‐trade for extending banking services to the unbanked/banked population. In order to ensure the access of unbanked people by taking advantage of countrywide mobile network coverage, Bangladesh Bank has brought out these operating guidelines for adoption by the commercial banks of Bangladesh. 2.0 Issuance Bangladesh Bank is issuing this guidelines as per the Article 7A(e) of Bangladesh Bank Order, 1972 and Section 4 of Bangladesh Payment and Settlement Systems Regulations, 2009. 3.0 Purpose The purpose of these Guidelines is to: I. Provide regulatory framework for the Mobile Financial Services [MFSs] which will create an enabling environment for innovations in financial services; II. Minimize the usage of cash and its associated costs; III. Ensure compliance with Anti‐Money Laundering and Combating Financing of Terrorism (AML/CFT) standards set by AML/CFT rules, regulations, guidelines and instruction issued by Bangladesh Bank; and IV. Promote accessibility to formal financial services especially to the poor and unbanked population at an affordable cost. 4.0 Scope The guidelines shall apply to the scheduled commercial banks and their subsidiaries operating in Bangladesh. 5.0 Mobile Financial Services Bangladesh Bank may allow the following Mobile Financial Services (in broad categories) ‐ I. Disbursement of inward foreign remittances, II. Cash in /out using mobile account through agents/Bank branches/ ATMs/Mobile Operator’s outlets. III. Person to Business Payments ‐ e.g. a. utility bill payments, b. merchant payments IV. Business to Person Payments e.g. salary disbursement, dividend and refund warrant payments, vendor payments, etc. V. Government to Person Payments e.g. elderly allowances. Freedom‐fighter allowances, subsidies, etc. VI. Person to Government Payments e.g. tax, levy payments. VII. Person to Person Payments (One registered mobile Account to another registered mobile account). VIII. Other payments like microfinance, overdrawn facility, insurance premium, DPS, etc. 1 | P a g e
6.0 Permissible Models Depending on the operation, responsibility and relationship(s) among banks, MNOs, Solution ...