PSD Circular No. 07: Launching Interoperable transactions among banks and MFS providers through National Payment Switch Bangladesh (NPSB)

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

Dear Sir,

Regarding the launch of interoperable transactions among banks and MFS providers through the National Payment Switch Bangladesh (NPSB).

To reduce cash transactions in the country, work is underway to implement interoperable transactions among all banks and MFS providers using the NPSB infrastructure. As part of this effort, the following instructions are issued to all concerned to launch interoperable transactions:

(1) Banks and MFS providers that have successfully completed the necessary testing shall begin transactions under the interoperable arrangement from October 27, 2020;

(2) Banks and MFS providers that have not yet completed the necessary interoperability testing shall begin transactions under the interoperable arrangement by March 31, 2021; and

(3) In the first phase of implementing the interoperable arrangement, the following interchange fee rates shall apply among participating institutions for transfers from one MFS account to another MFS account, from an MFS account to a bank account, and from a bank account to an MFS account:

a. In the case of transfers from one MFS provider's account to another MFS provider's account (P-to-P), the receiving MFS provider shall pay a fee of 0.80% of the total transaction amount to the sending MFS provider;

b. In both cases of transfers from a bank account to an MFS account and from an MFS account to a bank account, the relevant MFS provider shall pay a fee of 0.45% of the total transaction amount to the relevant bank; and

c. Participating banks and MFS customers shall not charge any additional fee beyond the existing transaction fees for interoperable transactions.

The prescribed transaction limits applicable to the respective bank/MFS account shall apply in the case of transactions under the interoperable arrangement.

This directive shall come into force immediately.

Yours faithfully,

(Md. Majibur Rahman) General Manager Phone: 9530174 psd@bsl.gov.bd psd@bsl.gov.bd Payment Systems Department Bangladesh Bank Head Office Dhaka

PSD Circular No.: 07 Date: 22 October 2020 Date: ------------------- 06 Kartik 1427