Bangladesh Bank Updates Rules for Digital Bank Transfers

Graphics: Agamir Somoy
Bangladesh Bank has issued new guidelines aimed at streamlining digital transactions between banks, setting a minimum Merchant Discount Rate (MDR) of 1% (including VAT) for merchant payments made through Bangla QR codes on the National Payment Switch Bangladesh (NPSB) platform.
The central bank’s Payment Systems Department-2 (PSD-2) issued the circular on Wednesday, and the new directive took effect immediately.
According to the circular, Bangladesh Bank had previously set MDR limits for transactions conducted through the NPSB platform and for government payment systems processed via card schemes using Point of Sale (POS) terminals and Bangla QR codes.
Under the new directive, all existing fees, charges, and conditions outlined in previous circulars will remain unchanged. The only revision applies to the MDR for merchant payments made through Bangla QR codes.
The circular states that acquiring banks or financial institutions may charge merchants a minimum MDR of 1% (including VAT) for payments received through Bangla QR codes using bank accounts, debit cards, prepaid cards, credit cards, Mobile Financial Services (MFS), and Payment Service Providers (PSPs).
To encourage wider adoption of digital payments, the circular also allows acquiring banks and financial institutions to launch promotional campaigns at their own discretion.


