BB warns of account blocks over Bangla QR cash-out

Bangladesh Bank has warned that accounts could be blocked if Bangla QR is used merely to cash out money without any genuine purchase of goods or services, signalling a tougher stance against misuse of the country’s interoperable digital payment system.

“Bangla QR was introduced to establish a cashless transaction system. Its main objective is to maintain a footprint of every transaction,” Bangladesh Bank spokesperson Arif Hossain Khan said at a press conference at the central bank’s headquarters on Wednesday.

He said appropriate action would be taken if any bank, mobile financial service (MFS) provider or other institution showed reluctance or delayed providing Bangla QR services.

The warning comes as the use of Bangla QR has surged sharply, with daily transactions rising nearly three and a half times in just three months and their value increasing almost fivefold.

According to Bangladesh Bank, customers of banks and MFS providers can now scan Bangla QR codes through mobile applications at around 3.9 million merchant outlets across the country to pay for goods and services.

In June, around 100,000 Bangla QR transactions were conducted on average each day, with their combined daily value exceeding Tk28 crore.

The figure has now jumped to around 350,000 transactions a day, with average daily transaction value reaching approximately Tk143.54 crore.

The central bank announced a package of fresh measures to accelerate the expansion of Bangla QR and reduce the cost of digital payments for merchants.

From October 1, funds from all Bangla QR payments will be credited instantly to the respective merchant accounts, eliminating delays in settlement and giving merchants immediate access to their money.

Bangladesh Bank has also waived the 1 per cent Merchant Discount Rate (MDR) previously charged to the acquiring institution for Bangla QR transactions. The charge for the issuing institution has also been set at zero.

The measures are expected to lower the cost of accepting Bangla QR payments and encourage more merchants to adopt digital transactions.

The central bank will also introduce incentives for Bangla QR transactions of up to Tk2,000 at merchant points through the National Payment Switch Bangladesh (NPSB).

Under the scheme, the payment-receiving institution will receive an incentive equivalent to 0.10 per cent of the transaction value, while the issuing institution will receive 0.20 per cent.

The central bank said the incentives were intended to encourage banks and other payment institutions to expand the use of interoperable QR-based transactions.

Bangla QR will also be expanded beyond merchant payments. A person-to-person (P2P) facility is being introduced to allow customers to transfer money interoperably by scanning another customer’s Bangla QR code or uploading an image of the code through the relevant mobile application.