Person-to-person transactions via Bangla QR from Nov 1

Bangladesh Bank has taken the initiative to launch person-to-person (P2P) money transfers through Bangla QR to reduce cash transactions and increase digital payments. Banks, mobile financial services (MFS), payment service providers (PSPs) and payment system operators (PSOs) have been asked to be ready to offer this facility from November 1.

The central bank has instructed the relevant institutions to integrate the necessary features into their respective apps by October 31.

In a recent circular, Bangladesh Bank said the apps must include features enabling customers to generate specific QR codes for personal transactions from their own apps, and to send money by scanning or uploading P2P QR codes sent by others.

Bangladesh Bank Payment Systems Department Director Shorafat Ullah Khan said comprehensive steps will be taken to transform Bangla QR into a single and universal QR code. Merchant payment charges have already been reduced to zero, effective from October 1.

He said currently, transactions worth Tk 50-60 crore are taking place daily through Bangla QR. From the beginning of October, these transactions are expected to increase manifold. Further new services will be introduced according to market demand.

Bangladesh Bank spokesperson Arif Hossain Khan said the launch of person-to-person transactions through Bangla QR will significantly increase online transactions.

He said currently, if someone makes a mistake in entering a single digit of an account number, there is a risk of the money going to the wrong account. The introduction of a single QR code will reduce such risks.

Under the new system, a customer can easily receive money via bank or MFS using their personal QR code, eliminating the need to repeatedly enter the recipient's name, account number or other details when sending money.

How P2P Bangla QR will work

Currently, Bangla QR is primarily used for business transactions. Customers scan the QR code of a shop or business establishment and make payments through bank or MFS apps. This is known as customer-to-merchant (C2M) transactions.

Under the new system, one person will be able to send money to another using the same technology.

Suppose a father in Dhaka wants to send money to his child. The child can generate a personal Bangla QR from their app and send it to the father. The father can scan that QR code and send the desired amount of money.

This will significantly reduce the need to manually enter various details such as bank account numbers and routing numbers.

No separate fee has been fixed for this transaction. For bank-to-bank transfers, charges will apply as per the IBFT rate, and for inter-transactions between banks, MFS and PSPs, charges will apply at the previously determined rates.