Bank-to-MFS and MFS-to-MFS money transfers via NPSB to start from 1 Nov

Highlights

• From 1 Nov, money can move between banks and MFS
• MFS-to-MFS transfers now allowed too
• Fees: Tk1.5 per Tk1,000 for banks, up to Tk8.5 for MFS
• Only senders will pay the charge; receivers won't be charged
• Move aims to cut cash dependency and make digital payments easier
• BB says the system will reduce agent reliance and lower cash-out costs

Money can now be sent directly from banks to mobile financial service (MFS) wallets — such as bKash, Nagad, and Rocket — as well as from one MFS wallet to another, through the National Payment Switch Bangladesh (NPSB) platform starting from 1 November.

Bite-Sized: How much will it cost to send money between banks and MFS wallets?

The Bangladesh Bank announced the move in a circular issued by its Payment Systems Department today (13 October).

Under this new interoperable system, users can send money from their bank accounts to MFS wallets at a cost of Tk1.5 per Tk1,000, the circular said. Similarly, users can transfer funds from MFS to bank accounts at a cost of Tk8.5 per Tk1,000.

For MFS-to-MFS transfers, the sender will pay a maximum charge of Tk8.5 per Tk1,000.

The fee for bank-to-bank transfers will remain unchanged at Tk1.5 per Tk1,000, while transfers from banks to Payment Service Providers (PSPs) will cost Tk2 per Tk1,000. The transaction charge will be borne by the sender, and no fee will be imposed on the receiver.

According to the central bank, the initiative aims to reduce dependency on cash and promote the country's transition toward digital financial services.

All banks, MFS operators, and PSPs will continue operating within their existing transaction limits, and the current interbank fund transfer rules under NPSB's internet banking service will remain unchanged.

A senior Bangladesh Bank official said the new system will reduce customers' dependency on agents for "Add Money" transactions to MFS wallets. "Customers will be able to transfer funds to their bank accounts and withdraw money through ATMs, which will cut their cash-out costs by half," he said.

"The charges we've set are the maximum limits. Service providers may choose to offer lower fees to benefit their customers."

When asked about banks currently offering MFS-to-bank transfers without fees, he said, "Some banks have MoUs with bKash or Nagad to provide such services to select customers. While customers may not be charged, banks are subsidising the cost to MFS operators. Now, this opportunity is open to all banks."

He also mentioned that while not all banks have updated their app-based software yet, the service is now available for implementation by any bank willing to offer it.

'Binimoy' platform failed to take off

In November 2022, the government launched the "Binimoy" interoperable digital transaction platform under the ICT Division's Innovation and Entrepreneurship Development Academy (iDEA) project, at a cost of Tk65 crore. The platform was intended to facilitate transactions between banks and MFS operators.

However, despite its official launch, "Binimoy" failed to gain traction.

Bangladesh Bank Governor Ahsan H Mansur said in January that the platform was developed under the direction of Sajeeb Wazed Joy, son of ousted prime minister Sheikh Hasina, through a shell company.

Even before Binimoy's creation, Bangladesh Bank had planned a similar service under its own management and issued a circular on 27 October 2020 to launch it officially — but it never materialised. Later, the project was relaunched under the government's iDEA initiative, which also failed to deliver operational interoperability.