Regulatory AlertsBangladesh: fintech & payments regulation
RegulatedBangladesh: 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)
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 activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment System Operator (PSO) License[1][2] Requires ISO 20022 compliance and Bangla QR integration | BDT 50,000,000 | 3-6 months | Bangladesh Bank |
| E-money & wallet issuance | LicenceMobile Financial Service (MFS) License[2][3] Strict capital and KYC requirements; limited to local entities | BDT 500,000,000 | 6-12 months | Bangladesh Bank |
| Domestic money transfer | LicenceMFS or PSO License[4][5] Domestic transfers handled via MFS or RTGS/BACH rails | See emoney/processing | See emoney/processing | Bangladesh Bank |
| Cross-border remittance | LicenceAuthorized Dealer (AD) Category-1[6][7] Only banks and licensed money transfer companies can handle remittances | — | — | Bangladesh Bank |
| Agent network | RegistrationMFS Agent Registration[8] Agents must be registered with the licensed MFS provider | — | — | Bangladesh Bank |
| Open banking / account information | Uncertainverify with regulator No formal open banking framework; data sharing via ADs only | — | — | — |
| Foreign-exchange services | LicenceAuthorized Dealer License[6][9] 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.[1]
- 2026-05-23PSD-1 Circular Letter No. 02 — Renamed Cashless Bangladesh Unit to Bangla QR Implementation Unit to enforce interoperability.[10]
- 2026-07-01PSD-2 Circular Letter No. 05 — Established standardized fee structures and Merchant Discount Rates for NPSB transactions.[11]
Market-entry checklist
- 1Secure MFS or PSO LicenseApply to Bangladesh Bank with BDT 500m capital for MFS or BDT 50m for PSO.
- 2Integrate Bangla QREnsure all merchant points use the unified Bangla QR standard by June 2026.
- 3Establish Cashless UnitCreate a dedicated Cashless Bangladesh Unit to coordinate regulatory compliance.
- 4Implement TokenizationUse BDT 500 token transactions for initial card-to-MFS account linking.
- 5Comply with AML/FIURegister with the Financial Intelligence Unit for suspicious transaction reporting.
Sources
- PSD-1 Circular Letter No. 01: Replacement of Proprietary QR with Bangla QR at all Merchant Points · 2026-04-01
- SDAD Circular Letter No. 10: Regarding approval of downtime of Citizens Bank Plc. · 2026-07-01
- PSD-1 Circular No. 03: Regarding 'Add Money' from Card to MFS Personal Account · 2026-05-19
- 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
- PSD-2 Circular Letter No. 03: Schedule Changes for BACH and RTGS Transactions Effective 05 April 2026 · 2026-04-04
- Streamlining the Disposal of Inward Remittances and Enhancing Operational Efficiency · 2026-04-09
- FEPD-1 Circular No. 13: Remittance of ship lease rental by shipping companies incorporated in Bangladesh · 2026-06-18
- PSD-1 Circular No. 02: Regarding the Establishment of the Cashless Bangladesh Unit · 2026-03-16
- FEPD-2 Circular No. 04: Facilitating Inward Remittance Receipt from Alternative Entities by Licensed Freight Forwarders · 2026-06-08
- PSD-1 Circular Letter No. 02: Renaming Cashless Bangladesh Unit as Bangla QR Implementation Unit · 2026-05-23
- PSD-2 Circular Letter No. 05: Determination of Fees and Charges for NPSB Transactions and Government Payments · 2026-07-01