The Bangladesh Bank<\/a>, under its regulatory framework outlined in the Bangladesh Payment and Settlement Systems Regulations, 2014 (BPSSR 2014)<\/i>, oversees the licensing and operation of Payment System Operators (PSOs) and Payment Service Providers (PSPs). These licenses are essential for businesses that facilitate or manage payment systems, ensuring compliance, security, and financial stability.<\/p>\n This detailed guide outlines the eligibility, application process, required documents, and approval procedures to obtain a PSO or PSP license in Bangladesh.<\/p>\n <\/p>\n The licensing framework aims to:<\/p>\n 1. Regulate and supervise payment systems operating in Bangladesh, including cross-border transactions.<\/p>\n 2. Promote secure and efficient fund transfer systems and the issuance of payment instruments.<\/p>\n 3. Establish clear guidelines for licensing Payment System Operators and Payment Service Providers.<\/p>\n 4. Define the roles, obligations, and compliance requirements for licensed entities.<\/p>\n <\/p>\n Payment System Operator (PSO)<\/b><\/span><\/b><\/p>\n According to “Bangladesh Payment and Settlement Systems Regulation-2014 (BPSSR-2014)” Payment Systems Department (PSD) issues license in two broad criteria- Payment Service Provider (PSP) and Payment System Operator (PSO).<\/p>\n It gives PSP license to the company who facilitates payment(s) or payment processes directly to the customers and settling their transactions through a scheduled bank or financial institution; for example E-wallet, Mobile Wallet etc. Besides, PSD gives PSO license to the company who operates a settlement system for payment activities between\/among participants of which the principal participant must be a scheduled bank or financial institution; such as payment gateway, payment aggregator etc. PSD reviews the market demand, business rational, regulatory requirements, risk management systems, settlement systems, eligibility criteria and others according to BPSSR-2014 for considering the application of license of PSP or PSO.<\/p>\n <\/p>\n Key Features of PSOs in Bangladesh:<\/strong><\/span><\/b><\/p>\n \u2022Must be licensed by the Bangladesh Bank.<\/p>\n \u2022Provides only the services approved under the license.<\/p>\n \u2022Prohibited from issuing e-money or payment instruments.<\/p>\n \u2022Transactions must be settled through scheduled commercial banks.<\/p>\n <\/p>\n A PSP facilitates payment services, including issuing e-money and settling transactions through a scheduled bank. PSPs often cater to retail and digital platforms, enhancing the ease of payments.<\/p>\n Key Features of PSPs:<\/b><\/span><\/b><\/p>\n \u2022Licensed by the Bangladesh Bank.<\/p>\n \u2022Can issue e-money and payment instruments under regulated terms.<\/p>\n \u2022Must maintain a \u2018Trust Cum Settlement Account\u2019 with a scheduled commercial bank.<\/p>\n <\/p>\n For PSOs:<\/b><\/span><\/b><\/p>\n 2. Paid-Up Capital:<\/b> Minimum BDT 5,000,000 (Five Million), subject to adjustments by the Bangladesh Bank.<\/p>\n 3. Experience:<\/b> Key personnel must have at least three years of relevant industry experience.<\/p>\n <\/p>\n For PSPs:<\/b><\/span><\/b><\/p>\n 2. Paid-Up Capital:<\/b> Minimum BDT 200,000,000 (Two Hundred Million), subject to adjustments by the Bangladesh Bank.<\/p>\n 3. Infrastructure:<\/b> Must establish robust technology infrastructure within Bangladesh.<\/p>\n 4. Experience:<\/b> Key personnel must have at least three years of experience in the payments or financial services industry.<\/p>\n Application Process for PSO\/PSP Licenses<\/b><\/b><\/p>\n <\/p>\n 2. Application Fee<\/strong>:<\/b> Include a non-refundable pay order\/demand draft of BDT 25,000 payable to the General Manager, Payment Systems Department.<\/p>\n <\/p>\n \u2022Bangladesh Bank reviews the application and may request additional documents if necessary.<\/p>\n \u2022Applications inconsistent with proposed services may be rejected with written notification.<\/p>\n 2. Evaluation Committee:<\/strong><\/b><\/p>\n \u2022The committee evaluates documents and submits a report.<\/p>\n \u2022Based on the report, the Bangladesh Bank decides whether to issue a No Objection Certificate (NOC).<\/p>\n <\/p>\n \u2022Applicants must deploy the system and submit a declaration (Annexure-C) confirming its readiness.<\/p>\n 2. Onsite Inspection:<\/strong><\/b><\/p>\n \u2022Bangladesh Bank conducts an onsite inspection to evaluate operational readiness and compliance.<\/p>\n 3. Final Decision:<\/strong><\/b><\/p>\n \u2022Approval is granted upon a satisfactory inspection report and fulfilment of NOC requirements.<\/p>\n For Company Incorporation:<\/span><\/strong><\/b><\/p>\n 2. Memorandum and Articles of Association.<\/p>\n 3. Trade License and e-TIN Certificate.<\/p>\n 4. Corporate Profile and Form-XII.<\/p>\n 5. CIB Clearance of Directors and Key Personnel.<\/p>\n <\/p>\n For Business Operations:<\/strong><\/span><\/b><\/p>\n 2. Business Plan (Market Analysis, Execution Plan, etc.).<\/p>\n 3. Organizational Structure and Financial Settlement Process.<\/p>\n 4. Business Projection for the next five years.<\/p>\n <\/p>\n For Technical Readiness:<\/span><\/strong><\/b><\/p>\n 2. Infrastructure Overview (Hardware, Software, and Network Communication).<\/p>\n 3. Data Security and Interoperability Measures.<\/p>\n <\/p>\n Fees and Payment Structure<\/span><\/strong><\/b><\/p>\n 2. License Fee<\/strong>:<\/b> Non-refundable BDT 100,000 upon final approval.<\/p>\n <\/p>\n Bangladesh Financial Regulatory Landscape<\/a><\/p>\n Fintech Licensing in Bangladesh (MFS, Digital Bank, PSP, PSO)<\/a><\/p>\nObjectives of the PSO\/PSP Licensing Regulations<\/b><\/b><\/h3>\n
Understanding PSOs and PSP Licenses in Bangladesh<\/b><\/b><\/h3>\n
List of Authorized PSO and PSP:<\/ol>\n
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Payment Service Provider (PSP) License in Bangladesh<\/b><\/span><\/b><\/h3>\n
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Eligibility Criteria for Licensing<\/b><\/b><\/h3>\n
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Step 1: Submission of Application for PSO & PSP License in Bangladesh<\/b><\/b><\/h3>\n
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Step 2: Preliminary Review and Issuance of NOC<\/b><\/b><\/h3>\n
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Step 3: Final Approval<\/b><\/b><\/h3>\n
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Required Documents to Apply for PSO and PSP License<\/b><\/b><\/h3>\n
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You may Explore the following guides prepared by LegalSeba LLP<\/h3>\n