PSD Circular No. 09: About Opening of Personal Retail Account

PSD Circular No. 09/2020 Date:
16 Agrahayan 1427
16 November 2020

Managing Director/Chief Executive Officer
All Scheduled Commercial Banks, All Mobile Financial Service Providers and All Payment Service Providers operating in Bangladesh

Head Office
Dhaka.

Dear Sir,

Regarding the operation of Personal Retail Accounts.

Although micro and small entrepreneurs, agricultural product sellers, and service providers play a very important role in the economic development of the country, opening a bank or mobile account for receiving payments is difficult for them in the existing structure. As a result, although general customers are enabled to transfer funds within the country through mobile accounts and digital banking services, necessary retail purchases are mainly being made with cash. On the other hand, the said entrepreneurs and service providers are also mainly completing payments in the supply chain through cash. However, to discourage the use of excessive cash, it is necessary to establish a "Digital Payment Ecosystem" that is efficient, cost-effective, and more effective in financial inclusion. For the establishment of the discussed "Payment Ecosystem", it is necessary to bring retail payment transactions and payment systems into a digital and institutional framework and modernize them. The widespread use of mobile app-based transactions, the country-wide expansion of mobile and internet infrastructure, technological advancements in the banking and financial service sector, and the operation of universal QR and e-KYC seem to have created a conducive environment for digital payment services. In this context, as part of establishing an overall "Digital Payment Ecosystem", it is desired to create opportunities for digital fund transactions for suitable entrepreneurs and service providers.

In such circumstances, the initiative has been taken to operate "Personal Retail Accounts" with the aim of making the payment receiving process of labor-dependent micro/variable entrepreneurs, service providers engaged in various agricultural professions, and product sellers and service providers operating their own micro/personal enterprises through social media platforms easier by facilitating the opening of accounts for commercial purposes. The regulations for such accounts in different payment systems will be as follows:

Only labor-dependent micro/variable entrepreneurs, product sellers and service providers engaged in various agricultural professions, and product sellers and service providers operating their own micro/personal enterprises through social media platforms can open such retail accounts following the regulations mentioned in (a), (b), and (c) below for receiving payments against the sale of products or provision of services and simultaneously for paying purchase prices in the supply or value chain.

(a) Personal Current Account through Banks and Agent Banking for providing Personal Retail Banking Services

1. Such banking services can be provided to the said customers through their existing general personal current bank accounts, or for those who do not have a personal current account, a personal current account can be opened in accordance with BRPD Circular No. 02/2020 dated 23-02-2020 and suitable retail banking services can be provided. In this regard, no transaction limit will apply to this account;

2. However, in the case of personal current accounts opened through b-KYC, the b-KYC policy guidelines issued by the Bangladesh Financial Intelligence Unit (BFIU) through BFIU Circular No. 25 dated 08-01-2020 will apply. However, under no circumstances can the monthly transactions in the account opened through b-KYC exceed 10,00,000 (Ten Lakh) and the maximum single balance exceed 10,00,000 (Ten Lakh) Taka;

3. In providing this facility through existing personal current accounts or opening new personal current accounts, the bank must ensure the customer's profession and eligibility for opening such accounts. In this regard, the bank must obtain verification of the customer's profession issued by local representatives or professional committees according to the customer's risk. The account must be opened by the Bank and Agent Banking Agents under their own direct supervision or through representatives appointed by them.

(b) Opening of Personal Retail MFS Accounts by Mobile Financial Service Providers

1. For the said customers, a new account of this type can be opened alongside their general MFS account against the same NID. In terms of KYC compliance for this account, the general KYC policy or b-KYC related policy of the Bangladesh Financial Intelligence Unit (BFIU) must be followed;

2. This type of account cannot be opened through general MFS agent points. The MFS Provider must ensure the customer's profession, eligibility for opening such accounts, and the customer's registered mobile number against their own NID, and the account must be opened under the Provider's own direct supervision or through representatives appointed by the Provider. The service provider institution must obtain verification of the customer's profession issued by local representatives or professional committees according to the customer's risk;

3. Apart from payment and fund transfer from the linked personal bank account, no other process (such as: cash-in, fund transfer, ad money, etc.) can be deposited/received in this account;

4. The transaction limits for this account will be as follows:

Type of Transaction	Basis of Transaction Limit	Number (Maximum)	Cumulative Amount (Taka)
Payment Receipt (Person-to-Retail)	Daily limit not applicable	-	30,000/-
	Monthly limit not applicable	-	5,00,000/-
Payment Receipt (Retail-to-Retail and Merchant-to-Retail)	Daily limit not applicable	-	30,000/-
	Monthly limit not applicable	-	3,00,000/-
Payment Disbursement (Retail-to-Retail and Retail-to-Merchant)	Daily	20	50,000/-
	Monthly	200	4,50,000/-
Send Money (Retail-to-Person Sending)	Daily	5	10,000/-
	Monthly	30	1,00,000/-
Cash Out (MFS)	Daily	5	20,000/-
	Monthly	30	3,00,000/-
Retail-to-Bank Account (Retail Account Holder's own bank account)	Daily	5	50,000/-
	Monthly	30	10,00,000/-

5. The maximum single balance for this account will be 5,00,000/- (Five Lakh Taka).

(c) Opening of Personal Retail PSP Accounts by Payment Service Providers

1. For the said customers, their general PSP account (e-Wallet) can be converted into this new retail account, or a new account can be opened against the same NID. In terms of KYC compliance for this account, the personal account related general KYC policy or b-KYC related policy of the Bangladesh Financial Intelligence Unit (BFIU) must be followed;

2. The PSP institution must ensure the customer's profession, eligibility for opening such accounts, and the customer's registered mobile number, and the account must be opened under the institution's own direct supervision or through representatives appointed by the PSP institution. The service provider institution must obtain verification of the customer's profession issued by local representatives or professional committees according to the customer's risk;

3. In terms of transactions in this account, the transaction limits prescribed for PSP (e-Wallet) accounts issued by this department will remain applicable. However, under no circumstances will any type of transaction exceed 10,00,000/- (Ten Lakh Taka) per month, and at any time the maximum single balance will not exceed 5,00,000/- (Five Lakh Taka).

Suitable (a), (b), and (c) customers cannot simultaneously operate a Personal Retail Account and a Merchant Account.

Suitable Banks, MFS Providers, and PSPs will take all possible measures to ensure security in the case of any process of fund withdrawal from the customer's such account. In this regard, Two Factor Authentication (2FA) must be enabled if necessary.

The above guidelines will be implemented immediately.

Yours faithfully,

(Md. Majibur Rahman)
General Manager
Phone: 9530174
Email: subrata.sarker@bb.org.bd