B Mirror Report:  Bangladesh Bank has introduced stricter regulations for transferring money from bank cards to mobile financial service (MFS) accounts such as bKash and Nagad, aiming to enhance customer security and improve transparency in digital transactions.

Under the new rules, customers will no longer be allowed to add money to their personal MFS accounts using a bank card registered in another person’s name.

The central bank also made it mandatory to complete a trial or “token transaction” of up to Tk500 when linking a new card to an MFS account for the first time.

The Payment Systems Department (PSD) of Bangladesh Bank issued a circular in this regard on Tuesday and sent it to the chief executives of all scheduled banks and mobile banking service providers.

According to the circular, as a temporary security measure, customers must complete a token transaction of up to Tk500 before a new card can be permanently linked to an MFS account. The card will become fully activated for regular transactions 24 hours after the successful completion of the token transaction.

However, the central bank said some relaxation in the rule will come into effect from June 1. From that date, banks and MFS providers must verify whether the cardholder and the MFS account holder are the same person before allowing “add money” transactions. If the names match, customers will no longer need to complete the Tk500 token transaction and will be able to link cards directly for regular use.

The circular also introduced a major technical change in transaction classification. Previously, money transfers from cards to MFS accounts were often treated as “merchant payments.” Bangladesh Bank has now instructed all providers to classify such transactions as “fund transfers.”

In addition, card-issuing banks must be able to clearly identify the beneficiary wallet number receiving the funds during the transaction process.

MFS providers have been instructed to implement the required technological adjustments by July 31. Bangladesh Bank warned that any institution failing to comply within the deadline will have its card-to-MFS “add money” service suspended from August 1.

The central bank said all other transactions conducted through personal MFS accounts will continue under existing regulations. The new directive has come into effect immediately, the circular added.