The Bangladesh Bank on Tuesday amended its regulations on mobile financial services that made government- and financial institution-controlled entities eligible to get an MFS license.
Earlier, the MFS license was only open for the banks or any subsidiary of banks.
The latest revision in Bangladesh Mobile Financial Services (MFS) Regulations paved the way for Nagad, a service of the Bangladesh Post Office, to secure the central bank’s licence.
The latest amendment would be replacing the Bangladesh MFS Regulations, 2018 issued in July 2018 and its subsequent amendments.
"As per Section 7A(e) and section 82 of the Bangladesh Bank Order, 1972 and Section 26 (cha) of the Bank Companies Act, 1991 Bangladesh Bank has issued revised regulations titled 'Bangladesh Mobile Financial Services (MFS) Regulations, 2022'," as per a BB circular issued on Tuesday, BSS reported.
As per the circular, the new regulations will replace the previously issued regulations and shall come into effect immediately.
Bangladesh Mobile Financial Services (MFS) Regulations, 2022 will be in effect along with the Bangladesh Payment and Settlement Systems Regulations, 2014, Guidelines for Trust Fund Management for Payment and Settlement Services or any other law(s) shall come into effect regarding these regulations.
As per the regulations, the financial sector in Bangladesh is continuously growing in response to the evolving needs of the growing economy.
The rapid expansion of mobile phone users, modernization of payments and financial systems based on IT infrastructure, the country-wide reach of mobile networks and the internet have boosted the opportunities for enhancing MFS to offer a convenient payment mode that is cost-efficient and prompt for the underserved, un-banked or under-banked and low-income group of the population.
Since the inception of MFS in 2011, Bangladesh experienced robust growth in the number of account holders, volume and amount of transactions in MFS. To fulfil the goal of financial inclusion and growing market demand to ensure customer interest and strengthen the payment ecosystem, an initiative has been taken to amend the existing Bangladesh Mobile Financial Services (MFS) Regulations, 2018.
