Regulatory Alerts2022-04-28
Added
PSD Circular Letter No. 03: Redefining the limit of online fund transfer from one bank account to another bank account and cancellation of the maximum number of daily transactions of Internet Banking Fund Transfer (IBFT) through NPSB
The document instructs all scheduled banks in Bangladesh to allow fund transfers from one bank account to another via online/internet banking for purposes such as e-commerce payments, utility bills, and credit card bill payments. It mandates that banks determine the maximum limit for intra-bank online transfers based on their own risk assessment and customer transaction profiles. Additionally, it removes the cap on the maximum number of daily transactions for Internet Banking Fund Transfer (IBFT) through NPSB, while keeping the daily and single transaction monetary limits unchanged. Banks are required to ensure strict compliance with the Money Laundering Prevention Act and related directives during these transfers, with the instructions taking immediate effect.
Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh
Dear Sir,
Regarding the redefinition of the limit for online fund transfer from one bank account to another bank account and the cancellation of the maximum number of daily transactions of Internet Banking Fund Transfer (IBFT) through NPSB.
Online banking transactions via Internet and smartphones are becoming increasingly popular among the general public for the payment or receipt of e-commerce products/services. Consequently, there is a need to redefine the limits for online/internet banking transfers to make this type of transaction method easier and safer. In this context, the following instructions are issued to all scheduled banks operating in the country, superseding PSD Circular No. 05 dated 02 November 2009 and DCMPA Circular No. 02 dated 28 March 2011:
a) Funds can be transferred from one bank account to another bank account via online/internet banking systems for purposes such as payment or receipt of products/services (including e-commerce), utility bills, credit card bill payments, etc.;
b) The maximum limit for fund transfers between accounts within the same bank via online/internet banking shall be determined by the bank itself, considering its own risk and the customer's transaction profile;
c) While keeping the maximum daily transaction limit and the maximum single transaction limit for Internet Banking Fund Transfer (IBFT) through NPSB as mentioned in Serial No. 5(b) of PSD Circular No. 09 dated 30 June 2021 unchanged, the cap on the maximum number of daily transactions is hereby removed;
d) Banks shall ensure proper compliance with the Money Laundering Prevention Act and the directives issued thereunder during online/internet fund transfers.
These instructions shall take effect immediately.
Yours faithfully,
(Md. Majibur Rahman) General Manager Phone: 9530174
Payment Systems Department Bangladesh Bank Head Office Dhaka
PSD Circular Letter No.: 03/2022
15 Baisakh, 1429 Date: ------------------- 28 April, 2022