BB tightens rules for card-to-MFS cashouts

Bangladesh Bank has introduced new rules for cashing out money from card-based mobile financial service (MFS) accounts, aiming to strengthen verification and transaction security.

Under the new rules, customers must first complete a successful transaction of up to Tk 500 using the card before linking it with an MFS account. The account can only be connected 24 hours after the transaction is completed.

The circular also said that from August 1 this year, MFS cash withdrawals through cards will be allowed only if the MFS account and the card are verified under the same ownership. Transactions involving mismatched ownership information will not be permitted.

The central bank said the changes will apply to all MFS providers and scheduled banks operating in the country.

In a circular issued by the Payment Systems Department yesterday, the central bank outlined several conditions for card-to-MFS cash withdrawal services. The instructions were sent to managing directors and chief executives of all concerned institutions.

Bangladesh Bank has also instructed service providers to introduce systems that clearly identify transactions as card-based rather than merchant payments.

At the same time, beneficiary account numbers must not remain blank during card-linked transactions.

The central bank warned that institutions failing to make the required changes by July 31 this year would not be allowed to continue offering card-to-MFS cash withdrawal services from August 1.

The circular further said that earlier instructions issued on March 27 last year regarding other transactions through MFS accounts would remain in force. All new directives will take immediate effect.