DHAKA, July 1, 2026 (BSS) - Bangladesh Bank (BB) has capped the maximum 
Merchant Discount Rate (MDR) at one percent, including VAT, for government 
revenue and fee collection through the Bangla QR payment system to promote 
affordable and wider use of digital payments.

The central bank's Payment Systems Department-2 issued a circular today 
directing that the new rate will apply to all government payments made 
through the National Payment Switch Bangladesh (NPSB) using Bangla QR.

The one percent MDR ceiling will cover transactions made through bank 
accounts, debit and prepaid cards, credit cards, Mobile Financial Services 
(MFS) accounts and Payment Service Provider (PSP) accounts.

According to the circular, the move is aimed at making digital payments for 
government services more cost-effective while accelerating the expansion of 
the Bangla QR ecosystem.

The directive supplements PSD Circular No. 01/2023, issued on February 6, 
2023, which fixed payment rates for POS and e-commerce transactions. The 
latest instruction specifically addresses QR-based government payments.

Bangladesh Bank also allowed acquiring banks and financial institutions to 
undertake promotional campaigns to encourage greater use of Bangla QR for 
government fee and revenue payments.

The circular has instructed all scheduled banks, Mobile Financial Services 
providers, Payment System Operators and Payment Service Providers to 
implement the directive with immediate effect.