Banks, MFS providers must settle complaints within specified deadlines: BB

The Bangladesh Bank has introduced a time-bound dispute resolution framework for Bangla QR merchant payments, requiring banks, mobile financial service (MFS) providers and payment service providers to settle customer complaints within specified deadlines.
The central bank issued the Guideline on Dispute Resolution for Bangla QR (Merchant Payment) Transactions on Sunday, with the new rules taking effect from 1 December.
Under the guidelines, if a customer’s account is debited but a transaction conclusively fails and the merchant does not receive the money, the issuing bank or MFS provider must automatically reverse the amount in real time or within 30 minutes, without requiring the customer to lodge a complaint.
For cases that cannot be resolved automatically, customers can file complaints within 45 days of the transaction. The issuer must accept or reject a claim within two working days. If it fails to do so, the dispute will automatically move to the chargeback process through the National Payment Switch Bangladesh’s (NPSB) centralised Dispute Management System (DMS).
The acquiring institution will have seven days to respond to a chargeback. If the dispute remains unresolved, it may proceed to arbitration, which must be completed within 30 days.
The guidelines introduce eight standardised chargeback reason codes covering common disputes, including non-receipt of goods or services, duplicate payments, incorrect billing and cases where a merchant is not credited despite the customer’s account being debited. Bangladesh Bank has also introduced a Transaction Status Inquiry (TSI) mechanism. Under the system, an issuing institution will be able to instantly verify an unclear transaction’s status with the acquiring institution, reducing the need for customers to initiate formal disputes.
For merchant-initiated refunds, merchants will have 60 days to submit refund requests, while acquiring institutions must respond within two working days.
The guidelines also set a 30-day period for investigating suspected unauthorised or fraudulent transactions. If an institution’s system failure or security lapse is established, the customer must be reimbursed within three business days. However, claims may be rejected if evidence establishes customer negligence or misconduct.
Institutions will also be held financially liable if they fail to provide transaction evidence during a dispute. In such cases, the institution may have to bear the disputed amount and face a penalty of up to the same amount.
Bangladesh Bank warned that banks, MFS providers and other payment service providers could face supervisory action for missing prescribed deadlines or unjustifiably rejecting legitimate claims.
Bangla QR is Bangladesh’s interoperable QR-based payment system, allowing customers to make merchant payments through participating banks, MFS providers and other payment service providers using a common QR code.
The central bank has been expanding Bangla QR as part of its drive to reduce cash-based transactions and promote interoperable digital payments. The system is being rolled out among a growing number of merchants, while Bangladesh Bank has also moved to make merchant payments faster and more convenient.
From 1 October, merchants receiving Bangla QR payments are required to get the funds instantly, another step aimed at encouraging businesses to accept digital payments.