Regulatory Alerts2022-03-22
Added
PSD Circular Letter No. 01: Providing permission for Card-based payments through Contactless Payment Service using NFC technology
Bangladesh Bank authorizes all scheduled banks, mobile financial services providers, payment service providers, and payment system operators to conduct card-based payments using NFC technology for EMVCo Compliant debit and prepaid cards. Each NFC-based debit or prepaid card transaction is capped at BDT 3,000, and within this limit, the mandatory use of PIN/2FA is relaxed, though immediate SMS alerts to customers are required. Card issuing institutions may also determine the maximum number of daily transactions per card. These instructions are effective immediately, with other provisions of PSD Circular No. 03/2018 remaining applicable.
Managing Director/Chief Executive Officer All Scheduled Banks/Mobile Financial Services Providers/ Payment Service Providers/Payment System Operators operating in Bangladesh
Dear Sir/Madam,
Subject: Regarding permission for Card-based payments through Contactless Payment Service using Near Field Communication (NFC) technology.
The use of Contactless Payment Service through credit cards using NFC technology has become popular due to the ease and speed of card transactions with NFC technology. Considering customer demand, it is expected that the adoption of NFC technology for debit and prepaid card transactions, in addition to credit cards, will increase electronic transactions. In this context, in continuation of PSD Circular No. 03/2018 and serial No. 3(d) of PSD Circular No. 04/2021 on the subject mentioned in the title, the following instructions are issued:
- EMVCo Compliant debit and prepaid cards can be used for transactions using NFC technology.
- The maximum limit for each debit and prepaid card-based transaction conducted through NFC technology is set at BDT 3,000.00 (Taka Three Thousand) only. Within this limit, the mandatory use of PIN/2FA for NFC technology-based card transactions is also relaxed. However, information about each such transaction must be immediately notified to the customer through SMS alert service.
- Card issuing banks/institutions may determine the maximum number of daily transactions conducted on a single card through NFC technology.
- For debit and prepaid card-based transactions conducted through NFC technology, other instructions of PSD Circular No. 03/2018 dated 12/07/2018 will be applicable.
These instructions will be effective immediately.
Yours faithfully, (Md. Mezbaul Haque) General Manager Phone: 9530174 Payment Systems Department Bangladesh Bank Head Office Dhaka
PSD Circular Letter No: 01 08 Chaitra, 1428 Date: ------------------- 22 March, 2022