Regulatory Alerts2023-10-03
Added
PSD Circular No. 12: Regarding issuance of MFS account for 14-18 years old young person
The document establishes regulations for Mobile Financial Service (MFS) accounts for Bangladeshi citizens aged 14 to 18, requiring parental consent via OTP and linking the minor's account to a parent's MFS account. It restricts cash-in transactions to funds from the linked parent account and sets specific daily and monthly transaction limits for cash-in, cash-out, P2P, and payments, with a maximum account balance of 30,000 BDT. MFS providers must monitor these accounts for misuse and submit monthly transaction reports to the Bangladesh Bank's Payment Systems Department by the 10th of the following month.
50119
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. www.bb.org.bd
Payment Systems Department
03 October, 2023 PSD Circular No- 12/2023 Date: -------------------------- 18 Ashwin, 1430
Managing Director / Chief Executive Officer All Mobile Financial Service (MFS) Provider Institutions operating in Bangladesh
Dear Sir,
Context regarding the introduction of MFS individual accounts for young persons aged 14-18 years.
To build 'Smart Bangladesh' as a strategy for building Digital Bangladesh, Bangladesh Bank has taken the initiative of 'Cashless Bangladesh' to bring the entire population of the country into the digital payment ecosystem. In this continuity, along with familiarization with the existing financial system, to expand financial inclusion, providing the opportunity for young persons aged 14-18 years to open MFS accounts will help connect a huge number of digital payment system users to a controlled payment ecosystem. This will also play an effective role in building Smart Bangladesh through the formation of a cashless society. In this context, considering the demand for digital transactions of the young population aged 14-18 years, the following guidelines are issued regarding the introduction and operation of MFS individual accounts for young persons aged 14-18 years:
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Eligibility for Account Opening: Young persons aged 14-18 years can open such MFS accounts;
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Citizenship: Both the person interested in opening an account aged 14-18 years and the guardian/legal guardian must be citizens of Bangladesh;
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Account Opening Process and Operation Method: a) When opening an MFS account for young persons aged 14-18 years, the person interested in opening the account and the guardian must enter their respective Birth Certificate and National ID numbers. For such account opening, the guardian's MFS account must be compulsorily used as a linked MFS account. Therefore, this account must be opened subject to Authentication of the father/mother/guardian's MFS account. In this regard, other instructions provided in BFIU Circular No- 20/2017 must be followed; b) Such MFS accounts must be opened subject to the consent of the father/mother/legal guardian. As part of the process of obtaining the guardian's consent in account opening, there must be a provision to send OTP to their mobile, and the guardian's consent must be obtained through the said OTP verification. Additionally, in the case of transactions of these accounts, it must be ensured that a message is sent to the account holder's mobile number. At the same time, arrangements must be made for regular monitoring along with informing the guardian via message or any other method regarding transaction information;
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Method of Depositing Money in MFS Account: Money can only be deposited into such MFS accounts of young persons aged 14-18 years from the guardian's linked MFS account/Bank account/Card/E-wallet. In this regard, Add Money cannot be made from agent points or any other MFS account/Bank account/Card/E-wallet into the said accounts;
Current Page: 02
Phone: 88-02-9550848, 9554896, IP: 88-02-55685001-6, Fax: 88-02-9530479, Web: www.bb.org.bd
50119
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. www.bb.org.bd
-02-
Following the previous page: 05. Approved Services: Cash-in/Add Money, Cash-out, P2P, Mobile Recharge, Utility Bill Payment, Education Fee, Merchant Payment;
- Transaction Limits: The transaction limits for MFS individual accounts of young persons aged 14-18 years are determined as follows:
| Sr. No. | Services | Transaction Limit Basis | Number (Max) | Total Amount (BDT) |
|---|---|---|---|---|
| (1) | Cash-in/Add Money (Only from guardian's linked MFS account/Bank account/Card/E-wallet) | Daily | 5 | 5,000/- |
| Monthly | 10 | 30,000/- | ||
| (2) | Cash-out | Daily | 5 | 5,000/- |
| Monthly | 10 | 25,000/- | ||
| (3) | P2P | Daily | 5 | 5,000/- |
| Monthly | 10 | 15,000/- | ||
| (4) | Payment (Bill payment, Education fee, Merchant payment, etc.) | Daily | 3 | 5,000/- |
| Monthly | 10 | 20,000/- | ||
| (5) | Account Balance (Maximum) | ---- | ---- | 30,000/- |
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Account Monitoring: To prevent any misuse in the said accounts, the concerned MFS Provider Institution must closely monitor these accounts;
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Report Submission and Program Disclosure: MFS Provider Institutions will submit the transaction information of accounts opened for young persons aged 14-18 years and the report of this program to the Payment Systems Department of Bangladesh Bank on a monthly basis. This report must be submitted by the 10th of the month following the end of each month.
This instruction will come into force immediately.
Yours faithfully,
(Signature) (Md. Motasim Billah) Director (PSD) Phone: 02-9530611
Phone: 88-02-9550848, 9554896, IP: 88-02-55685001-6, Fax: 88-02-9530479, Web: www.bb.org.bd