Regulatory Alerts2017-08-24
Added · Updated
PSD Circular No. 04/2017: Ensuring Security, Minimizing Transaction Risks and Enhancing Public Awareness in Card-Based Payments Through Different Payment Channels to Discourage or Reduce Cash Transactions
Bangladesh Bank mandates that all domestic interbank card transactions be processed through the Bangladesh Switch (BAS) by December 31, 2017, and requires all card transactions to be PIN-based by the same date. Banks must ensure ATM and POS terminals are equipped with chip card technology, anti-skimming devices, and PIN pads by June 30, 2018, and upgrade existing magnetic stripe cards to chip technology by that date. The circular further requires the implementation of Two-Factor Authentication (2FA) for internet/mobile banking by December 31, 2017, and obligates banks to conduct cybersecurity risk assessments, establish 24/7 Security Operations Centers, and enhance customer awareness regarding secure card usage.