BB unveils draft rules to open digital payments to non-bank players
Draft published online for public consultation
E-money issuers must
- Maintain Tk50 crore paid-up capital
- Prepare three-year business and risk plan
- Keep settlement accounts to safeguard funds
- Continuous fraud detection mandatory
- Transparent governance with high-integrity directors
- Mandatory board audit and risk committees
- Fines of Tk50 lakh, license revocation, legal action for rule breaches
- Stakeholders invited to submit feedback before final approval
- Existing operators must reapply within six months of enforcement
The Bangladesh Bank has unveiled draft rules allowing non-bank local and foreign companies to obtain licences to operate as Payment Service Providers (PSPs) or Mobile Financial Service (MFS) providers.
The central bank has published a draft of the "Regulations for E-Money Issuers in Bangladesh" on its website for public consultation, breaking away from the long-standing bank-led model that has dominated mobile and online financial services.
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Under the new structure, both banks and independent digital finance companies will be authorised to issue e-money upon approval from the central bank.
Existing MFS and PSP operators – whether bank-led or otherwise – must apply for new licences within six months of the regulations taking effect to comply with the updated framework.
At present, e-money in Bangladesh is issued by mobile financial service providers such as bKash, Rocket, and Nagad, alongside payment service providers like TallyPay, Pathao Pay, and Sheba Pay. These institutions generate e-money through digital transactions and payment services.
The Bangladesh Bank has introduced the draft regulations to bring such activities under a formal legal and supervisory structure, ensuring institutional stability, financial security, and consumer protection.
According to the draft, the new rules aim to "promote financial inclusion, ensure the safety and reliability of e-money, and foster a competitive and innovation-driven payments environment".
A senior Bangladesh Bank official, speaking on condition of anonymity, described the draft as "a milestone reform which will open up the digital finance space beyond traditional banks".
He said the goal is to encourage competition, innovation, and interoperability. "We want a safe, inclusive, and technology-neutral framework where both banks and fintechs can expand financial access."
Industry leaders have welcomed the move. "Allowing non-bank EMIs could significantly accelerate innovation and partnerships in mobile and online payments," said a leading fintech executive.
Draft rules
The framework introduces two categories of e-money issuers: authorised EMIs, comprising regulated institutions such as banks and finance companies, and dedicated EMIs (DEMIs), non-bank entities exclusively engaged in e-money and related payment activities.
Applicants, especially DEMIs, must maintain a minimum Tk50 crore paid-up capital, submit a three-year business and risk plan, ensure fit and proper governance, and establish Trust and Settlement Accounts to safeguard customer funds.
E-money issuers must also implement a robust risk management framework, maintain tested technology systems with sound internal controls, employ multi-factor authentication for high-value transactions, and ensure continuous fraud detection and cyber resilience against evolving threats.
They must also establish effective and transparent governance, featuring directors of high integrity and strict segregation of duties, while requiring mandatory board audit and risk committees to ensure robust internal controls and continuous regulatory oversight.
Violations of the rules could result in fines of at least Tk50 lakh, license revocation, or civil and criminal proceedings.
Stakeholders have been invited to submit feedback before the final regulations are issued. Once adopted, the new framework is expected to reshape Bangladesh's digital finance industry, aligning it more closely with international practices seen in China, India, and Malaysia.
Bangladesh Bank will exercise oversight and supervisory powers over e-money issuers under the authority granted by the Bangladesh Bank Order, 1972 and the Payment and Settlement Systems Act, 2024.
