Regulatory Alerts2024-06-06
Added · Updated
Guidelines for issuing Prepaid Instrument (PI) by non-payment system entities, 2024
These guidelines regulate the issuance of closed and semi-closed prepaid instruments by non-payment system entities, requiring approval from Bangladesh Bank and a minimum paid-up capital of BDT 20 crores for closed PIs and BDT 5 crores for semi-closed PIs. Issuers must adhere to strict limits, including a maximum face value of BDT 10,000, individual holding caps of BDT 100,000, and aggregate outstanding liability capped at 20% of audited net worth or BDT 25 crores, whichever is lower. The rules prohibit reloading, cash-outs, and discounts exceeding 20%, while mandating a one-year maximum expiry period with specific procedures for handling expired instruments and reporting compliance to the regulator.