PSD Circular Letter No. 02: Regarding compliance of instructions of PSD Circular No. 04/2017

Payment Systems Department Bangladesh Bank Head Office Dhaka PSD Circular Letter No: 02/2018 Date: 26 November 2018 12 Agrahayan 1425

Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding compliance of instructions of PSD Circular No. 04/2017.

Reference is made to PSD Circular No. 04/2017 issued on August 24, 2017.

In accordance with Clause 1.5 of the said Circular, instructions were given to banks and financial institutions to issue all branded cards with chip and PIN (Chip and PIN) added; to progressively upgrade all previously issued magnetic strip cards to this technology; and to complete this process by June 30, 2018. It has come to our knowledge that, based on information received from banks, several banks have not yet completed the process of converting their branded magnetic strip cards to chip and PIN-based cards.

In this context, the use of magnetic strip technology in the issuance of new branded cards is prohibited after December 31, 2018. At the same time, it is advised that you urgently complete the process of upgrading all previously issued branded magnetic strip cards of your institution to chip and PIN-based cards by February 28, 2019, and inform this department.

Please acknowledge receipt.

(Masuma Sultana) Deputy General Manager Phone: 9530294 E-mail: masuma.sultana@psd.bb.gov.bd