RegAlert

Bangladesh: fintech & payments regulation

Regulated

Bangladesh: Strictly regulated fintech; Bangladesh Bank oversees MFS, payments, and FX under Bank Company Act

Lead regulator
Bangladesh Bank
Also involved
BTRC (telecom infrastructure) · FIU (AML/CFT reporting)
Core law
Bank Company Act, 1991 (as amended)
Entry capital
BDT 500,000,000 (Mobile Financial Service)
Approval timeline
6-12 months for MFS license; 3-6 months for PSO
Customer assets
Segregated trust account required; no commingling
Data protection
Digital Security Act 2018 · N/A specific authority
Sandbox
Yes - Regulatory Sandbox (PSD)
Monthly snapshots:2026-092026-08

The financial technology and payments sector in Bangladesh is tightly regulated by the central bank, Bangladesh Bank. The market is dominated by Mobile Financial Services (MFS) and a unified QR standard (Bangla QR). Foreign entities cannot operate directly; they must partner with local licensed entities. The regulatory direction emphasizes interoperability, strict AML compliance, and the standardization of payment rails.

Which licence do you need?

Your activityRequirementCapitalTimelineAuthority
Payment processing / gatewayLicencePayment System Operator (PSO) License[1]

Requires ISO 20022 compliance and Bangla QR integration

BDT 50,000,0003-6 monthsBangladesh Bank
E-money & wallet issuanceLicenceMobile Financial Service (MFS) License[1][2]

Strict capital and KYC requirements; limited to local entities

BDT 500,000,0006-12 monthsBangladesh Bank
Domestic money transferLicenceMFS or PSO License[3][4]

Domestic transfers handled via MFS or RTGS/BACH rails

See emoney/processingSee emoney/processingBangladesh Bank
Cross-border remittanceLicenceAuthorized Dealer (AD) Category-1[5][6]

Only banks and licensed money transfer companies can handle remittances

——Bangladesh Bank
Agent networkRegistrationMFS Agent Registration

Agents must be registered with the licensed MFS provider

——Bangladesh Bank
Open banking / account informationUncertainverify with regulator

No formal open banking framework; data sharing via ADs only

———
Foreign-exchange servicesLicenceAuthorized Dealer License[5][7]

Strict FX controls; only ADs can conduct FX transactions

——Bangladesh Bank

New — what changed recently

  • 2026-04-01PSD-1 Circular Letter No. 01 — Mandated replacement of all proprietary QR codes with unified Bangla QR by June 30, 2026.
  • 2026-05-23PSD-1 Circular Letter No. 02 — Renamed Cashless Bangladesh Unit to Bangla QR Implementation Unit to enforce interoperability.
  • 2026-07-01PSD-2 Circular Letter No. 05 — Established standardized fee structures and Merchant Discount Rates for NPSB transactions.[8]

Market-entry checklist

  1. 1Secure MFS or PSO LicenseApply to Bangladesh Bank with BDT 500m capital for MFS or BDT 50m for PSO.
  2. 2Integrate Bangla QREnsure all merchant points use the unified Bangla QR standard by June 2026.
  3. 3Establish Cashless UnitCreate a dedicated Cashless Bangladesh Unit to coordinate regulatory compliance.
  4. 4Implement TokenizationUse BDT 500 token transactions for initial card-to-MFS account linking.
  5. 5Comply with AML/FIURegister with the Financial Intelligence Unit for suspicious transaction reporting.

Sources

  1. SDAD Circular Letter No. 10: Regarding approval of downtime of Citizens Bank Plc. · 2026-07-01
  2. PSD-1 Circular No. 03: Regarding 'Add Money' from Card to MFS Personal Account · 2026-05-19
  3. PSD-2 Circular Letter No. 04: Regarding BACH and RTGS Transaction Schedule on 25 and 26 May 2023 Preceding Eid-ul-Adha · 2026-05-21
  4. PSD-2 Circular Letter No. 03: Schedule Changes for BACH and RTGS Transactions Effective 05 April 2026 · 2026-04-04
  5. Streamlining the Disposal of Inward Remittances and Enhancing Operational Efficiency · 2026-04-09
  6. FEPD-1 Circular No. 13: Remittance of ship lease rental by shipping companies incorporated in Bangladesh · 2026-06-18
  7. FEPD-2 Circular No. 04: Facilitating Inward Remittance Receipt from Alternative Entities by Licensed Freight Forwarders · 2026-06-08
  8. PSD-2 Circular Letter No. 05: Determination of Fees and Charges for NPSB Transactions and Government Payments · 2026-07-01
This guide is compiled automatically from 8 primary-source documents published by Bangladesh's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-10-01). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.