Banks, MFS providers must adopt Bangla QR by June or face penalties

All banks, mobile financial service (MFS) providers, payment service providers (PSPs), and payment system operators (PSOs) must replace their proprietary QR codes at merchant points with the central bank’s interoperable platform, Bangla QR, by June 30. Failure to comply could lead to penalties of up to Tk 30 lakh.

In a circular issued yesterday, Bangladesh Bank (BB) made the transition mandatory and warned that violations would invite action under Section 37(5) of the Payment and Settlement Services Act 2024, along with other relevant laws, regulations and directives.

Non-compliant institutions may face fines of up to Tk 30 lakh, imprisonment for up to three years, or both. Magistrates of the National Consumer Rights Protection Directorate may also be informed to initiate judicial proceedings against those responsible.

All merchant points must prominently display the Bangla QR. Banks and service providers are required to ensure uninterrupted transactions through proper technical integration and interoperability, according to the circular.

Institutions are also instructed to monitor merchant points regularly, and if any merchant uses Bangla QR for cash-out activities instead of payments, the facility must be cancelled immediately.

The BB urged banks and service providers to increase awareness campaigns among merchants and customers.

According to the central bank, Bangla QR was introduced to create an interoperable, secure, cost-effective, and inclusive digital payment ecosystem nationwide.

Unlike proprietary QR systems that limit transactions to specific providers, Bangla QR allows customers of participating banks and MFS providers to make payments using a single QR code.

Launched in 2023, the interoperable QR-based settlement system aims to improve transparency, reduce risks, lower transaction costs, and speed up digital payments.

As part of its goal to make 75 percent of transactions cashless by 2027, authorities have already made QR payment facilities mandatory for obtaining or renewing trade licences nationwide.