PSD Circular Letter No. 01: Guidelines on Mobile Financial Services for the Banks

Payment Systems Department Bangladesh Bank Head Office, Dhaka. PSD Circular Letter No. 01/2013 Dated: Managing Director/Executive Director All Scheduled Banks Operating in Bangladesh Dear Sir,

Subject: Guidelines on Mobile Financial Services

Reference is made to the circular letter No. 11 dated 20/12/2011 issued through DCMPD (PSD) regarding "Guidelines on Mobile Financial Services" and Circular Letter No. 10 dated 14/12/2011 issued through DCMPD (PSD).

Although the limit for cash transfer from one mobile account to another mobile account was determined through Circular Letter No. 10 dated 14/12/2011 issued through DCMPD (PSD), no limit/amount or number was determined for cash in or cash out. Furthermore, complaints have been received that individuals without mobile accounts are using agents or other customers' mobile accounts for cash in/out and fund transfers, which is risky and contrary to the "Guidelines on Mobile Financial Services". Fraud and deception incidents are also occurring using mobile accounts due to non-compliance with Bangladesh Bank's guidelines. In this context, after discussions with concerned parties, the following instructions have been prepared to ensure proper use of Mobile Financial Services and to prevent fraud in Mobile Financial Services, which are advised to be followed:

1. The instructions regarding "Guidelines on Mobile Financial Services" issued through DCMPD Circular Letter No. 08 dated 22/09/2011 by Bangladesh Bank and amended through DCMPD (PSD) Circular Letter No. 11 dated 20/12/2011 must be fully complied with.

2. Except for receiving cash deposits, no other transactions (such as fund withdrawal, transfer, etc.) shall be made before verification and approval of the customer's account opening application/KYC by the bank.

3. The existence of the customer's mobile account must be verified by the agent before making necessary transactions. If evidence of irregularity is found, the concerned agent/agents' agency shall be cancelled immediately. This matter will also be under the surveillance of Bangladesh Bank.

4. Cash deposit (Cash In) or fund transfer (Cash Transfer) from one agent's mobile account to another agent's mobile account shall not be made.

5. An agent shall not deposit cash into his own agent account more than 05 (five) times per day.

6. A customer can make a maximum of 05 (five) daily cash deposits and 20 (twenty) monthly cash deposits into their mobile account, and a maximum of 03 (three) daily cash withdrawals and 10 (ten) monthly cash withdrawals.

7. The maximum amount for daily cash deposit and cash withdrawal per customer (individual) is determined as $25,000/- per instance. However, the total amount of monthly cash deposit or withdrawal shall not exceed $150,000/-.

8. In the case of customer cash fund transfers, the previously determined limits, i.e., a maximum of $10,000/- per day and a total of $25,000/- per month, shall remain in force.

9. The above transaction limits shall not apply to services mentioned in Section 5.0 of the Guidelines on Mobile Financial Services, such as C2I, I2C, C2A, A2C, etc. For surveillance convenience, the bank or its subsidiary must take appropriate measures to identify all such transactions in the system operated by them.

The percentage mentioned in serial number 2 shall be implemented by December 2, 2013. Other percentages shall be implemented from the date of issuance of the circular letter.

01 September, 2013 17 Bhadra, 1420