BB waives Bangla QR charges to boost digital payments

Highlights:

• Zero interbank charges on Bangla QR transactions from 1 Oct
• Merchants to get incentives on Bangla QR-based NPSB payments
• Acquiring institutions to get Tk1 per Tk1,000, issuing institutions Tk2 per Tk2,000
• No transaction charge on Tk1,000 Bangla QR payment for customer, merchant
• Transaction splitting, cash-outs, other misuse to be monitored
• No incentives for failed or disputed transactions

Bangladesh Bank has waived inter-bank charges on all transactions made through the Bangla QR code system, a move aimed at expanding digital payments and encouraging small and marginal businesses to adopt cashless transactions.

The central bank has reduced the Interchange Reimbursement Fee, the charge paid between banks for processing a transaction, to zero for Bangla QR payments. As a result, neither the card-issuing institution nor the merchant's payment-receiving institution, known as the acquiring institution, will be able to impose any fee or service charge on such transactions.

Bangladesh Bank issued a circular on the matter today (10 August), directing all banks, mobile financial services providers, payment service providers and payment system operators to comply with the new instruction.

Earlier, on 1 July, the central bank had set a minimum Merchant Discount Rate of 1%, including VAT, for merchant payments made through Bangla QR. However, the additional charge failed to have the intended impact on market transactions and stakeholders subsequently called for its withdrawal.

In a separate circular issued today, Bangladesh Bank also announced incentives for sellers of goods and service providers for NPSB transactions made at merchant points through Bangla QR, with the incentive applicable to each transaction of up to Tk2,000.

Under the arrangement, the acquiring institution will receive an incentive equivalent to 0.10% of the transaction amount, or Tk1 per Tk1,000, while the issuing institution will receive 0.20%, or Tk2 per Tk1,000. The incentives will be disbursed monthly.

The directive will come into effect for all Bangla QR transactions from 1 October 2026.

In practical terms, if a customer pays Tk1,000 at a shop by scanning a Bangla QR code, neither the customer's bank nor the merchant's bank will deduct any amount as a transaction charge.

Bangladesh Bank said the new facilities were introduced to expand the digital payment system across the country and encourage small and marginal businesses to adopt digital transactions.

The circular also sets out safeguards to prevent misuse of the incentive scheme. Transactions cannot be deliberately split into smaller amounts to qualify for incentives. No incentive will be provided for failed, cancelled, reversed, refunded, charged-back or disputed transactions.

If a merchant records an unusually high number or unusual pattern of transactions, the relevant acquiring institution must monitor and verify the activity. Institutions must also take measures to prevent misuse of the system, including artificial transaction-splitting and cash-out schemes.

Bangladesh Bank has reserved the right to verify and audit records relating to transactions, merchants, settlements and incentive payments. Any incentive paid in error or in excess will either be recovered or adjusted against future incentive payments.

The central bank said the initiative is intended to simplify merchant payments, bring small and marginal businesses into the digital payments system and help build a secure, affordable and interoperable digital payment network.