Fintech Guide
The Ultimate Guide to Fintech Licensing in Bangladesh (MFS, Digital Bank, PSP, PSO) — 2025
Your complete resource for understanding the fintech license application procedure, capital requirements, and regulatory framework under the Payment and Settlement Systems Act, 2024 (passed 4 July 2024) and the revised Digital Bank Guidelines (August 2025). This page is an updated part of our ultimate guide to fintech licensing in Bangladesh.
Overview: Fintech Licenses in Bangladesh
This guide compares the primary fintech licenses available in Bangladesh, regulated by Bangladesh Bank. Payment-system licensing now falls under the statutory authority of the landmark Payment and Settlement Systems Act, 2024, while the Digital Bank regime is governed by the Bank Company Act, 1991 read with the revised Digital Bank Guidelines (Version 2) issued in August 2025.
Minimum Paid-up Capital Comparison (BDT Crore)
Digital Bank capital raised from BDT 125 crore to BDT 300 crore by Bangladesh Bank circular dated 25 August 2025.
Detailed Fintech License Comparison
For entrepreneurs and investors, selecting the correct license is paramount. This table compares MFS, Digital Bank, PSP and PSO licenses. Payment-system licences are governed by the Payment and Settlement Systems Act, 2024; Digital Banks are governed by the Bank Company Act, 1991. (See our separate guide on NBFI vs. PSP licensing.)
| Feature | MFS | Digital Bank | PSP (General) | PSO |
|---|---|---|---|---|
| Primary Function | E-money services via agents | Branchless digital banking (deposits, loans) | Payment services (e-wallets, gateways) | Payment infrastructure (switches, aggregators) |
| Min. Paid-up Capital | BDT 45 Crore | BDT 300 Crore (updated Aug 2025) | BDT 20 Crore | BDT 0.5 Crore |
| Primary Legislation | PSS Act, 2024; MFS Regs 2022 | Bank Company Act, 1991; Digital Bank Guidelines v2 (2025); PSS Act, 2024 | PSS Act, 2024; BPSSR 2014 | PSS Act, 2024; BPSSR 2014 |
| Licensing Section | PSS Act 2024, s. 5 | Bank Company Act 1991, s. 31 | PSS Act 2024, s. 5(4) | PSS Act 2024, s. 5 |
| Can Issue E-money? | Yes | N/A (Bank Deposits) | Yes | No |
| Penalty for Unlicensed Operation | Up to 5 years' imprisonment and/or fine up to BDT 50 lakh (PSS Act 2024). Offences are cognizable, non-bailable and non-compoundable. | |||
MFS License in Bangladesh: Application Procedure
A Mobile Financial Services (MFS) license allows an entity to operate as a specialised PSP, offering e-money through an agent network. Currently 16 banks operate authorised MFS in Bangladesh. Below is the checklist for the MFS license application procedure, governed by the Payment and Settlement Systems Act, 2024 and the Bangladesh MFS Regulations, 2022.
Digital Bank License in Bangladesh: 2025 Requirements
A Digital Bank license permits a fully branchless banking operation. Digital Banks are licensed under the Bank Company Act, 1991 and must comply with the Payment and Settlement Systems Act, 2024 for payment activities. On 25 August 2025, Bangladesh Bank issued Version 2 of the Digital Bank Guidelines, raising paid-up capital from BDT 125 crore to BDT 300 crore and tightening fit-and-proper and shell-company rules. A fresh application window ran from 1 September to 2 November 2025.
PSP License in Bangladesh: A Complete Checklist
A Payment Service Provider (PSP) license is for entities offering e-wallets or payment gateways. Bangladesh Bank has issued PSP licences under Section 5(4) of the Payment and Settlement Systems Act, 2024; the most recent grant was to Samadhan Services Limited (Grameen Telecom) in June 2025, alongside Progoti Systems, iPay Systems, D Money Bangladesh, Recursion Fintech and others. (See our companion guide on how to obtain PSO and PSP licenses.)
PSO License in Bangladesh: The Definitive Guide
A Payment System Operator (PSO) license is for companies that operate core payment infrastructure such as payment gateways, switches and aggregators. Ten PSO companies are currently licensed in Bangladesh, processing 19.2 million transactions worth BDT 24.4 billion in the year to June 2024 (Bangladesh Bank Payment Systems Report). This guide covers the complete PSO license procedure, governed by the Payment and Settlement Systems Act, 2024 and BPSSR 2014.
How LegalSeba LLP Can Help You Secure Your Fintech License
Navigating the regulatory landscape for a fintech license in Bangladesh, especially under the Payment and Settlement Systems Act 2024 and the revised 2025 Digital Bank Guidelines, requires expert legal guidance. LegalSeba LLP provides end-to-end fintech legal advisory to ensure your application is comprehensive, compliant, and positioned for success with Bangladesh Bank.
- Strategic Advisory: Expert guidance on the PSS Act 2024 and the revised 2025 Digital Bank Guidelines to help you choose the most suitable license (MFS, Digital Bank, PSP, or PSO).
- Documentation and Dossier Preparation: Drafting and vetting business plans, three-year financial projections, MoA/AoA, fit-and-proper declarations, IT and AML/CFT policies, and Trust Fund arrangements.
- Application Management: End-to-end management of the two-phase application, from NOC application to final licence after onsite inspection.
- Regulatory Liaison: Acting as your representative before the Payment Systems Department (PSD) and BRPD of Bangladesh Bank.
Ready to Launch Your Fintech Venture in Bangladesh?
Let our experts guide you through every step of the licensing process. Contact us today for a personalised consultation.