Fintech & payments regulation in Bangladesh (2026)

Bangladesh Bank's Payment Systems Department circular (13 October 2025) mandated all banks, MFS providers, and PSPs to connect via NPSB for instant interoperable transfers from November 1, 2025, eliminating the need for separate bilateral arrangements; bKash initially delayed joining citing security concerns but committed to full participation by early 2026.

Bangladesh Bank published draft Payment System Operator (PSO) and E-Money Issuer (EMI) Regulations under the Payment and Settlement System Act 2024, for the first time allowing non-bank domestic and foreign companies to obtain payment licences independently; dedicated EMIs face minimum paid-up capital of BDT 500 million.

Bangladesh Bank suspended the licence of Nagad Digital Bank PLC, the country's first scheduled digital bank, listed just two months earlier, over allegations of corruption and concerns about dubious sponsors, signalling that the new digital bank framework carries stringent fit-and-proper enforcement.

Bangladesh's parliament passed the country's first standalone Payment and Settlement System Act 2024, elevating the prior regulatory-order framework to primary legislation; it mandates Bangladesh Bank licensing for all PSPs and PSOs, and prescribes penalties of up to BDT 5 million or five years' imprisonment for unlicensed operations.

Bangladesh Bank listed Nagad Digital Bank PLC as a scheduled bank under the Banking Company Act 1991, making it the first fully licensed digital-only bank in Bangladesh and demonstrating that the 2023 Digital Bank Guideline had progressed from policy to operational reality.

Bangladesh Bank issued letters of intent (LoIs) to Nagad Digital Bank and Kori Digital Bank as the first two entities approved in principle under the Digital Bank Guideline, formally opening the licensing pipeline for app-only banks in Bangladesh.

Bangladesh Bank approved a dedicated Digital Bank Guideline creating a new licence class for app-only banks with minimum paid-up capital of BDT 1.25 billion; CEOs must have 15+ years of banking experience (five in tech-based banking), and all products and services must be delivered entirely through digital channels.

Bangladesh Bank published the National Digital Payments Roadmap 2022-2025, committing to expanding MFS interoperability, migrating government disbursements to digital channels, introducing a regulatory sandbox (RFFO), and increasing digital transaction volumes by 42%, setting the policy agenda that drove subsequent legislative and regulatory reforms.

Bangladesh Bank issued Bangladesh Mobile Financial Services (MFS) Regulations 2022 (PSD Circular No. 04/2022), replacing the 2018 version; key changes included allowing non-bank financial institutions and government entities to enter MFS as licensed subsidiaries, strengthening interoperability mandates, and raising AML/CFT compliance standards.

Bangladesh Bank issued a standalone Bangladesh Mobile Financial Services (MFS) Regulations 2018 under the Bangladesh Bank Order 1972, replacing the 2011 guidelines; it codified the bank-subsidiary ownership requirement (minimum 51% bank stake), set capital requirements, transaction limits, and binding AML/CFT obligations for all MFS providers.

Bangladesh Bank issued the Bangladesh Payment and Settlement Systems Regulations (BPSSR) 2014 under Article 7A(e) of the Bangladesh Bank Order 1972, creating the first comprehensive licensing regime for Payment Service Providers (PSPs) and Payment System Operators (PSOs) and establishing Bangladesh Bank's supervisory mandate over non-bank payment entities.

Bangladesh Bank launched NPSB as the country's central interbank payment switch, enabling interoperability across ATM and POS networks for all commercial banks; it became the foundational clearing and settlement infrastructure over which all subsequent digital payment layers, including MFS wallets, were eventually built.

Bangladesh Bank issued the inaugural 'Guidelines on Mobile Financial Services (MFS) for the Banks' on 22 September 2011 (revised December 2011), establishing a bank-led model requiring MFS providers to operate as bank subsidiaries or wings with at least 51% bank ownership; this directly enabled the 2011 launch of bKash (BRAC Bank subsidiary) and the broader MFS industry.

Bangladesh Bank launched BEFTN in February 2011 as the country's first paperless interbank electronic funds transfer system, handling payroll, remittances, government tax payments, and bill transfers; it was the critical foundational infrastructure that preceded and enabled subsequent digital payment innovation.