The Presidents/Chief Executives
All Banks/Microfinance Banks
Dear Sirs / Madam,
Regulations for Digital On-Boarding of Merchants
Please refer to BPRD Circular No. 05 dated November 1, 2019 on ‘Regulations for Digital On-boarding of Merchants.
2. In order to enable cash deposit transactions in merchant accounts, sections 4(c) and 9 (b) of ‘Regulations for Digital On-boarding of Merchants’ have been revised as follows:
| Section 4 (c)
||Banks/MFBs shall ensure that Merchant Accounts are only used for digital collection of payments against the provision of legitimate goods and services.
||Banks/MFBs shall ensure that Merchant Accounts are only used for digital collection of payments against the provision of legitimate goods and services. However, cash deposit into these accounts are permitted subject to terms and conditions mentioned in sub section 9 (b & c) of these Regulations.
| Section 9 (b)
||Banks/MFBs shall not permit cash deposit transactions in these accounts.
- All customers including Branchless Banking level “0” accountholders can top up/cash in their accounts up to Rs. 10,000/- per month through biometrically verified merchants. However, cash deposit shall only be used for digital payments.
- Total cash deposit in merchant accounts shall not exceed Rs. 100,000/- per month.
3. All other instructions on the subject regulations shall remain the same.
4. Please acknowledge receipt.
Enclosure: Updated Regulations for Digital On-Boarding of Merchants