The central bank has approved the facility of Near Field Communication (NFC) technology for debit and credit card users of the country.
The Bangladesh Bank issued a circular in this regard on Tuesday.
With the addition of this technology, transactions will be completed without the need of physical contact of the card or the use of password.
According to the central bank circular, the contract-less payments through NFS credit cards have become popular due to its effectiveness. Electronic transactions will increase if NFC technology is introduced in credit card as well as debit and prepaid card considering customer demand.
EMVCo compliant debit and prepaid cards can be used though the NFC technology, the circular stated.
The maximum limit for each transaction is Tk3000 and users won't have to use a PIN. However, the information of each such transaction must be immediately notified to the customer through SMS only.
Card issuing banks and institutions can fix the maximum number of daily transactions on an NFC-activated card.
The previous guidelines of the Public Security Division (PSD) circular will apply to the NFC enabled debit and prepaid card transactions, the BB circular mentioned.