Bangladesh Bank (BB) has taken an initiative to a nationwide rollout of a unified QR (quick-response) code for digital transactions.
Under the new directive, all banks, mobile financial service (MFS) providers, and transaction system operators (PSOs) involved in QR-based payments are required to implement the ‘Bangla QR’ code.
The central bank issued the directive last Wednesday, stipulating that by 30 June, all merchant points across the country, where QR-based transactions occur, must adopt the Bangla QR code instead of proprietary codes.
The directive also instructs relevant institutions to resolve any technical issues associated with Bangla QR-based transactions within this timeline and to ensure interoperability for inter-institutional QR payments.
In a recent meeting with senior financial journalists from leading national newspapers, Bangladesh Bank Governor Mostaqur Rahman stated that the government aims to increase online transactions while reducing cash dealings to boost revenue collection.
He also highlighted the initiative to make the Bangla QR code mandatory.
Following the governor’s meeting, the central bank formally issued the directive making Bangla QR-based transactions compulsory.
The notice specifies that if any cash-out operations occur at merchant points using codes other than Bangla QR, the respective institution’s QR code will be cancelled.
In effect, Bangladesh Bank seeks to make Bangla QR the universal and mandatory standard for digital payments.
Currently, nearly all banks already use Bangla QR codes for QR-based transactions, while MFS providers rely on their own proprietary QR codes. Consequently, many merchant points operate both Bangla QR and MFS-specific codes.
With the new directive, from 1 July, all QR-based transactions at merchant points will be conducted via a single unified Bangla QR code.
Several leading MFS companies operate over 1 million merchant points nationwide using their own QR codes. These will now need to be replaced with the Bangla QR code. MFS providers note that this process is time-consuming and entails significant financial costs.
Sector analysts point out that a unified Bangla QR code will require MFS companies to share revenue from transactions, which has reduced their enthusiasm for adopting a single code. However, incentives from Bangladesh Bank could increase their willingness, easing the transition. Technical coordination will also be essential to ensure smooth transaction settlements.
The directive emphasises that any institution failing to comply will face legal action under relevant laws.