Bangladesh Bank (BB) has introduced updated electronic Know-Your-Customer (e-KYC) guidelines allowing simplified digital verification for transactions of up to Tk5 lakh a month as part of efforts to expand digital finance and strengthen safeguards against fraud and money laundering.
The directive, issued Wednesday, will take effect from September 2026 and replaces all previous circulars on e-KYC procedures, the central bank said.
The rules apply to scheduled banks, finance companies, mobile financial service (MFS) providers, payment service providers (PSPs), payment system operators (PSOs) and other licensed payment entities.
BB said the rapid growth of digital banking and payment instruments has made electronic identity verification essential for both customers and financial institutions.
The updated framework aims to accelerate digital financial services while managing risks linked to identity fraud and money laundering.
Under the rules, e-KYC will apply only to natural persons holding a valid national identity card, while legal entities and other customer categories must follow traditional KYC procedures.
The system introduces a fully paperless onboarding process that allows institutions to open accounts, verify identities, maintain digital KYC profiles and assess customer risk electronically.
BB has introduced two categories of verification—simplified e-KYC and regular e-KYC.
Simplified e-KYC applies to low-risk customers with limited transactions and requires basic identity verification, while regular e-KYC applies to accounts exceeding simplified thresholds and requires full digital verification, customer risk grading and enhanced due diligence for high-risk or influential clients.
Under simplified e-KYC, cash deposits and withdrawals are capped at Tk1 lakh per transaction and Tk3 lakh per month.
Transfers are limited to Tk2.5 per transaction with a monthly ceiling of Tk5 lakh.
Electronic payments cannot exceed Tk1 lakh per transaction or Tk3 lakh per month.
Foreign remittances and government-to-person payments are exempt from these limits, BB said.
Simplified e-KYC will cover selected financial services including MFS, PSP and PSO transactions within limits set under the Payment and Settlement Systems Act 2024.
It also applies to financial inclusion products, agent banking services within transaction thresholds and limited-transaction accounts for underprivileged customers, including no-frills accounts, government subsidy payments and person-to-government receipts.
BB said the scope of simplified e-KYC services may be revised based on risk assessments.
Regular e-KYC will apply to accounts exceeding simplified limits, including agent banking transactions beyond branch thresholds, banking products outside simplified coverage, finance company services above Tk10 lakh and PSP services with ceilings set by BB.
The central bank said digital onboarding must use national identity documents, national ID database verification and biometric authentication through fingerprint matching or facial recognition.
Customers may complete onboarding through self-check-in, assisted agent check-in or other approved digital methods, while those unable to complete electronic onboarding must follow conventional KYC procedures.
The onboarding process will include digital data capture, identity verification, sanctions screening, account opening, customer profiling and risk grading where applicable.
BB also instructed banks, finance companies and PSPs to adopt a risk-based approach for periodic KYC review.
High-risk customers must be reviewed at least once a year, while low-risk customers will undergo review every five years from the date of account opening or the last KYC update.
The central bank said the revised e-KYC framework is intended to make customer onboarding faster, safer and more efficient while supporting broader financial inclusion and the continued expansion of digital financial services in Bangladesh.
