E-money issuers must:
- Maintain Tk50 crore paid-up capital
- Prepare a three-year business and risk plan
- Keep settlement accounts to safeguard funds
- Continuous fraud detection is mandatory
- Ensure transparent governance with high-integrity directors
- Establish mandatory board audit and risk committees
- Face fines of Tk50 lakh, licence revocation, or legal action for rule breaches
- Stakeholders invited to submit feedback before final approval
- Existing operators must reapply within six months of enforcement
Bangladesh Bank has unveiled draft regulations that will allow both local and foreign non-bank companies to obtain licences to operate as Payment Service Providers (PSPs) or Mobile Financial Service (MFS) providers.
The central bank has published the draft of the “Regulations for E-Money Issuers in Bangladesh” on its website for public consultation, marking a significant departure from the longstanding model.
Under the proposed framework, both banks and independent digital finance companies will be permitted to issue e-money, subject to approval from Bangladesh Bank.
Existing MFS and PSP operators—whether bank-led or otherwise—will be required to apply for new licences within six months of the regulations coming into effect in order 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, as well as payment service providers like TallyPay, Pathao Pay, and Sheba Pay. These entities generate e-money through digital transactions and payment services.
The introduction of the draft regulations aims to bring these activities under a formal legal and supervisory framework, ensuring institutional stability, financial security, and consumer protection.
According to the draft, the new rules are designed to “promote financial inclusion, ensure the safety and reliability of e-money, and foster a competitive and innovation-driven payments environment.”
A senior official from Bangladesh Bank, speaking on condition of anonymity, described the draft as “a milestone reform that will open up the digital finance space beyond traditional banks.” The official explained that the goal is to encourage competition, innovation, and interoperability. “We aim to create a safe, inclusive, and technology-neutral framework where both banks and fintech companies can work together to expand financial access,” they added.
Industry leaders have welcomed the move, recognising its potential to accelerate innovation. “Allowing non-bank EMIs could significantly boost innovation and partnerships in mobile and online payments,” said a prominent fintech executive.
Draft Rules
The new regulatory framework introduces two categories of e-money issuers: authorised EMIs, which include regulated institutions such as banks and finance companies, and dedicated EMIs (DEMIs), which are non-bank entities solely involved in e-money and related payment activities.
Applicants—particularly DEMIs—will be required to maintain a minimum paid-up capital of Tk50 crore, submit a comprehensive three-year business and risk plan, ensure appropriate governance structures, and establish Trust and Settlement Accounts to safeguard customer funds.
E-money issuers will also need to implement a robust risk management framework, maintain secure technology systems with strong internal controls, employ multi-factor authentication for high-value transactions, and ensure continuous fraud detection and cyber resilience to protect against evolving threats.
The regulations further require that issuers adopt transparent governance practices, appoint directors of high integrity, and ensure strict segregation of duties. Additionally, mandatory board audit and risk committees will be required to ensure robust internal controls and ongoing regulatory oversight.
Violations of these rules could result in penalties of at least Tk50 lakh, revocation of licences, or civil and criminal proceedings.
Stakeholders have been invited to submit feedback on the draft regulations before they are finalised. Once adopted, the new framework is expected to transform Bangladesh’s digital finance landscape, aligning it with international standards seen in countries such as China, India, and Malaysia.
Bangladesh Bank will retain oversight and supervisory authority over e-money issuers, as granted under the Bangladesh Bank Order, 1972, and the Payment and Settlement Systems Act, 2024.