Fintech & payments regulation in Bangladesh (2026)
Fintech and digital payments in Bangladesh: licensing regime.
Bangladesh operates a clear, in-force licensing regime for digital payments and fintech under Bangladesh Bank, which issues distinct licenses for Payment Service Providers (PSPs), Payment System Operators (PSOs) and Mobile Financial Services (MFS) providers. This regime now rests on the Payment and Settlement Systems Act, 2024 (passed July 2024), which for the first time gives statutory footing to the previously regulation-based framework and brings non-bank providers under formal supervision. Some adjacent areas, notably BNPL and open-banking/payment-initiation services, remain under draft or developing rules rather than a finalized dedicated framework.
Legal framework
Bangladesh Bank (central bank), Payment Systems Department, Payment and Settlement Systems Act, 2024; Bangladesh Payment and Settlement Systems Regulations, 2014 (BPSSR-2014); and the Bangladesh Mobile Financial Services (MFS) Regulations, 2022.
Key points: digital payments & fintech in Bangladesh
Statutory basis (2024 Act)
Parliament passed the Payment and Settlement Systems Act, 2024 on 4 July 2024, the first dedicated statute for payment systems; it requires Bangladesh Bank approval to operate payment systems or issue payment instruments, with criminal penalties (up to 5 years' imprisonment or BDT 5 million fine) for unauthorized activity. Bangladesh Bank has since granted PSP licenses under Section 5(4) of this Act.
PSP / PSO licensing
Bangladesh Bank's Payment Systems Department issues two principal license categories under BPSSR-2014: PSP licenses (e-wallets, mobile wallets and entities facilitating payments directly to customers, settling via a scheduled bank/FI) and PSO licenses (payment gateways/aggregators operating settlement systems). PSPs may also issue e-money subject to safeguarding/redemption conditions.
Mobile Financial Services (MFS) regime
MFS (e.g. bKash, Rocket, Nagad) are licensed under the Bangladesh MFS Regulations, 2022, which replaced the 2018 rules; eligibility was broadened beyond scheduled banks to include bank-led entities, Bangladesh Bank-licensed financial institutions and government entities.
Instant-payment rails & interoperability
Bangladesh Bank and the ICT Division launched the interoperable real-time platform Binimoy (IDTP) on 13 Nov 2022 (UPI-modeled), enabling instant transfers across banks, MFS and PSPs. From 1 Nov 2025, a PSD circular connected banks, MFS and PSPs on the National Payment Switch Bangladesh (NPSB) as a single interoperable platform.
Open banking / payment initiation (developing)
There is no finalized open-banking framework; Bangladesh Bank's draft Payment System Operators Regulation, 2025 introduces, for the first time, a dedicated licensing provision for Payment Initiation Service Providers (PISPs), signaling a move toward open-banking-style services but not yet in force.
BNPL, no dedicated rules
Buy Now, Pay Later has no specific legislation in Bangladesh; it operates under general consumer-protection, financial-services and e-commerce rules, with future credit services envisaged via the proposed PISP framework rather than a current dedicated regime.
Digital banks
Bangladesh Bank opened digital-bank licensing; following the first round (with 52 applicants and initial approvals including a Nagad-led and a bKash-led entity), the window reopened with revised guidelines (issued 25 Aug) raising paid-up capital to Tk 300 crore and tightening fit-and-proper tests.
Timeline of decisions
- Decision · officialNPSB Full Interoperability Launch: Banks, MFS & PSPs on One Switch
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 Sangbad Sangstha (BSS)
- GuidanceDraft PSO & EMI Regulations 2025 Open Digital Payments to Non-Banks
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.
The Business Standard
- EnforcementNagad Digital Bank Licence Suspended Over Corruption Allegations
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.
The Financial Express
- DecisionNagad Digital Bank PLC Listed as Bangladesh's First Scheduled Digital Bank
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.
The Business Standard
- DecisionBangladesh Bank Issues Letters of Intent to First Digital Bank Applicants
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.
New Age Bangladesh
- GuidanceBangladesh Bank Board Approves Digital Bank Guideline
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.
The Business Standard
- Guidance · officialNational Digital Payments Roadmap 2022-2025 Published
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
- Law · officialMFS Regulations 2022 Replace 2018 Rules, Expand Market Access
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
- Law · officialMFS Regulations 2018 Formalise Bank-Subsidiary Model
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
- Law · officialBangladesh Payment and Settlement Systems Regulations 2014 Issued
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
- Decision · officialNational Payment Switch Bangladesh (NPSB) Established
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
- Guidance · officialFirst MFS Guidelines for Banks Issued, Enabling bKash and Peers
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
- Decision · officialBangladesh Electronic Funds Transfer Network (BEFTN) Launched
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.
Bangladesh Bank
Sources
- vdb-loi.com/bd_publications/bangladesh-enacts-payment-and-settlement-system-act-2
- thedailystar.net/news/bangladesh/politics/news/js-passes-payment-and-settlement-system
- bb.org.bd/aboutus/regulationguideline/psd/pso_psp_03022019.pdf
- bb.org.bd/aboutus/regulationguideline/bpss.pdf
- bb.org.bd/mediaroom/circulars/psd/feb152022psd04e.pdf
- newagebd.net/article/162859/amended-mfs-rules-allow-govt-led-entities-eligible-for
- dhakatribune.com/business/279142/govt-officially-launches-binimoy
- win-tk.org/en/technology/mfs-interoperability-bangladesh-2026-bkash-nagad-bank/
- tbsnews.net/thoughts/pisp-next-big-leap-bangladeshs-digital-payment-1304956
- legalseba.com/bd-articles/buy-now-pay-later-bnpl-regulations-and-related-laws-in-ba
- bssnews.net/business/327890
- thedailystar.net/business/news/digital-bank-licence-window-reopens-3971296
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Next topicOrientation, not legal advice: verify against the primary sources linked above. Last verified 25 May 2026. Methodology & how to cite · State of Technology Regulation 2026