MFS-to-bank fund transfer limit fixed

The central bank yesterday fixed the maximum transfer limit from a mobile financial service account to a bank account, a move that would give a boost to the fast-expanding mobile banking in Bangladesh.   

The daily limit is Tk 50,000 and the monthly ceiling is Tk 3 lakh, said Bangladesh Bank in a notice. The decision came into effect immediately.

The move came as the central bank hadn't fixed any limit for transferring funds from an MFS account to a bank account when it issued its circular in April this year, creating confusion among service providers, said a central banker.

In fact, it was not mentioned in any previous circular.

As a result, most MFS providers have capped the daily transfer limit at Tk 25,000, equivalent to the cash-out ceiling.

The central banker says since a user can't keep more than Tk 3 lakh in their account at any given time, they have to transfer it to bank accounts. But they could not do so comfortably owing to the perceived cap.

"Now, we have come up with the new limit. As a result, the confusion will be cleared up," said the central bank official. 

In Bangladesh, MFS has expanded thanks to its growing popularity among the low-income groups as well as the government's fund transfers related to various social safety net programmes and incentives.

There were 11.08 crore MFS users in Bangladesh in April, data from the central bank showed, transacting Tk 92,933 crore in the month.