Guideline for Mobile Financial Services

Topics: Bank, Money, Financial services Pages: 5 (2325 words) Published: May 21, 2013
Bangladesh Bank
(Central Bank of Bangladesh)

Head Office
Motijheel, Dhaka-1000 Bangladesh
DCMPS (PSD) Circular Letter no.11

Department of Currency Management and Payment Systems (Payment Systems Division)

Date:20 /12/2011

Managing Directors/ Chief Executive Officers All Commercial Banks

Dear Sirs,
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:

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 ...
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