New MFS guideline launched in Bangladesh

After much discussion and review, Bangladesh Bank issued a new regulation on Mobile Financial Services in July 2018. The regulation still stipulates that MFS service provision will be a bank led model as before. Other key highlights of this regulation are that are that MNOs have been barred from any equity participation in an MFS entity, however they can become distributors or super agents of MFS providers. Furthermore, to provide MFS, scheduled commercial bank will establish subsidiary with bank or non-bank entity as equity partner and take license as PSP from Payment Systems Department of Bangladesh Bank.

August 3, 2018

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