Bangladesh Bank issues new MFS regulations

Bangladesh Bank (BB) has issued Bangladesh Mobile Financial Services (MFS), 2022 replacing the Bangladesh MFS Regulations, 2018 issued in July 2018 and its subsequent amendments, reports BSS.

“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 a revised regulations titled ‘Bangladesh Mobile Financial Services (MFS) Regulations, 2022’,” as per a BB circular issued on Tuesday.

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.

Rapid expansion of mobile phone users, modernization of payments and financial systems based on IT infrastructure, country-wide reach of mobile network and internet have boost up the opportunities for enhancing MFS to offer convenient payment mode which is cost efficient and prompt for the underserved, un-banked or under-banked and low income group of population of our country.

Since the inception of MFS in 2011, Bangladesh experienced a robust growth in number of account holders, volume and amount of transactions in MFS. In order to fulfil the goal of financial inclusion and growing market demand with a view to ensuring customer interest and strengthening the payment ecosystem, initiative has been taken to amend the existing Bangladesh Mobile Financial Services (MFS) Regulations, 2018.