Govt entity allowed to engage in mobile banking services

Bangladesh Bank (BB) has cleared regulatory hurdles for a government entity to become a mobile financial services (MFS) provider.

The BB made it clear in a circular titled ‘Bangladesh Mobile Financial Services (MFS) Regulations, 2022’ issued on Tuesday.

The new regulations incorporated that an MFS company can be a government entity-led organisation. In the previous regulations issued in 2018 only bank/financial institution-led MFS was allowed.

“Bangladesh Bank will allow only scheduled commercial bank/financial institution/government entity-led MFS in Bangladesh. The provision of these regulations shall apply to MFS providers in Bangladesh,” read the regulations.

Like a bank or a financial institution, a government entity has to have at least 51 percent stakes in the MFS company.