PSD Circular Letter No. 12: Instruction Related to Bill Payment of Credit Cards and P2P Transactions of MFS Provider

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Payment Systems Department Bangladesh Bank Head Office Dhaka

PSD Circular Letter No. 12 Date: 25 August 2021 10 Bhadro 1428

Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh All Mobile Financial Services (MFS) Providers

Dear Sir,

Reference is made to the instructions regarding the payment of credit card bills and person-to-person (P2P) transactions of Mobile Financial Services (MFS) Providers.

Attention is drawn to PSD Circular No. 04/2021 dated 04/04/2021 of this department.

1. Clause 3(c) of the aforementioned circular had advised that if the date for payment of credit card bills, without imposing late payment fees, falls within the period of government-announced general curfew/restrictions, the payment date should be rescheduled/extended up to 05 working days after the lifting of the curfew. It was also instructed that during the curfew period, interest would be charged only on the principal amount, and no new interest would be charged on the interest of the previous month's bill for the next month's bill.

In the meantime, as shops/shopping malls have been opened and public transport services resumed subject to health protocols, the instructions regarding the credit card bill payment deadline, late payment fees, and interest mentioned in the aforementioned PSD Circular No. 04/2021 are hereby withdrawn. Banks are advised to follow the following instructions from the Banking Regulation and Policy Department's BRPD Circular Letter No. 47 dated September 24, 2020:

a) Interest/profit on unpaid credit card bills shall be applicable from the day immediately following the last designated date for credit card bill payment. In no case shall interest be charged from the transaction date; b) Only one late fee (however it may be named) shall be collected against any bill paid late.

2. The instructions regarding person-to-person (P2P) transactions of Mobile Financial Services (MFS) Providers described in Clause 3(b) of the aforementioned circular are to be implemented as follows:

a) The maximum monthly limit for person-to-person (P2P) transactions shall remain BDT 200,000/-; b) In the case of imposing charges for person-to-person (P2P) transactions, Mobile Financial Services (MFS) Providers shall make decisions according to their own business policies.

Except for the aforementioned instructions, other instructions from PSD Circular No. 01/2019 dated May 19, 2019 of the Payment Systems Department shall remain unchanged.

These instructions shall take effect immediately.

Yours faithfully,

(Signature) (Muhammad Badujjaman Dider) Deputy General Manager Phone: 02-9530611